West Ham ‘could finally PURCHASE the London Stadium’ as the true extent of the ‘financial burden placed on current ownership at the taxpayers expense’ is revealed, with money lost ‘year on year’
- West Ham could seek a deal for a full purchase of the London Stadium
- The Hammers are apparently interested in purchasing the stadium outright
- The current venue operators revealed the stadium is operating at a loss
West Ham are reportedly exploring the option of turning their rental of the London Staidum into a permanent purchase after it was revealed that the current ownership was losing money ‘year on year’ at the expense of the taxpayer.
The Hammers are apparently open to seeking a full takeover of the former Olympic venue as Lyn Garner, chief executive of the publicly funded London Legacy Development Corporation (LLDC), explained that the landmark would be running at a loss even if a naming-rights deal was secured.
Unaudited accounts that have been reportedly viewed by The Times apparently show the true extent of a £31.1 million operating loss for the year ending March 31, 2022.
Garner told the London Assembly earlier in March that the contract struck with West Ham will produce ‘year-on-year deficits’ due to a rise in costs that aren’t covered by the club.
She admitted: ‘Ultimately, whether we like it or not, we have signed up to a 90-year contract, which sees the public sector operating that stadium and taking the risk for increased costs.
West Ham could seek a full purchase of their London Stadium that they currently rent
West Ham have struggled in the Premier League this season and face the prospect of relegation
Hammer supporters could eventually be enjoying a pre-match pint at a stadium owned by the club
‘If we want to run London Stadium in this way we are going to see year-on-year operational deficits.’
Czech billionaire Daniel Kretinsky became one of West Ham’s main shareholders in 2021 and could seek a full takeover of the club that could also include a potential deal for the stadium rights.
West Ham’s current rental fee of the London Stadium increased from £2.5million to £3.6million in 2022, but their highly-rewarding deal see’s them take all of the ticket money without having to foot the cost for heating, cleaning, or maintenance.
A naming-rights deal could be agreed under the current lease with the venue operators
There are suggestions that a naming-rights deal could be close to being completed, however, despite the current operators bagging the first £4 million a year of any such deal, this is still not expected to be big enough to cover the generated loss.
Anything above £4million would apparently be split 50/50 with West Ham’s executives and shareholders.
Current stadium operators the LLDS also have to foot the bill to adapt the stadium for athletics events such as this summer’s Diamond League meeting.
Their agreement with UK Athletics means they have to pay to remove seats that is expected to come at a cost of at least £3million.
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