Following a legal battle, the terms under which West Ham will rent the Olympic Stadium have been revealed in a 207 page document. As anticipated, the rent is £2.5m a year which would be halved in the event of relegation.
The rent works out at around £48,000 a week, roughly the same amount the club pays Andy Carroll. This for the use of an arena that cost £700m to build, including £272m to convert for football.
Following a legal battle, the terms under which West Ham will rent the Olympic Stadium have been revealed in a 207 page document. As anticipated, the rent is £2.5m a year which would be halved in the event of relegation.
The rent works out at around £48,000 a week, roughly the same amount the club pays Andy Carroll. This for the use of an arena that cost £700m to build, including £272m to convert for football.
West Ham will not have to pay any heating (ncluding undersoil heating) or lighting costs which could be quite substantial. They will also not pay for cleaners, turnstile operators, policing or stewarding. Even the goal nets and corner flags will be provided. All these costs, together with maintenance, are likely to exceed the annual rent. Arsenal pay just under £1m a year to the Metropolitan Police.
If they qualify for the Champions League they will have to pay an additional £1m and £100,000 if they win the FA Cup. These figures say something about the relative financial value of these two competitions. A top five place in the Premier League will cost them £375,000.
The first £4m of any naming deal would be shared between the London Legacy Development Corporation and Newham borough. After that anything will be split 50-5 with West Ham. This makes such a deal less attractive for the club, but talks are under way with several companies.
If the club is sold for £200m, the first £1.8m would have to be paid to the LLDC. This would rise to £27m if the club is sold for £300m.
Former Leyton Orient chairman Barry Hearn who opposed the agreement said, ‘My dog could have negotiated a better deal for the taxpayer. Former sports minister Richard Caborn would like to see the House of Commons Public Accounts Committee investigate the deal.
West Ham argue that ‘someone renting out the stadium for 25 days a year cannot be responsible for 365 days’ running costs.’