Despite somewhat harshly being described as ‘a declining club’ by the Financial Times yesterday, West Ham won the unanimous backing of the board of the Olympic Park Legacy Company (OLPC) to take on the Olympic Stadium after the 2012 games. Like Manchester City, they have become the beneficiaries of a venue built for a one-off sports event.
Despite somewhat harshly being described as ‘a declining club’ by the Financial Times yesterday, West Ham won the unanimous backing of the board of the Olympic Park Legacy Company (OLPC) to take on the Olympic Stadium after the 2012 games. Like Manchester City, they have become the beneficiaries of a venue built for a one-off sports event.
The OLPC set out five criteria for the bidders, including the revenues they could raise for the taxpayer’s benefit – where Spurs were ahead. However, they are thought to have had difficulty in meeting two of the criteria, speed of re-opening the stadium after 2012 and allowing flexible use.
West Ham are now considering the use of retractable seating to bring fans closer to the game on match days. It would cost around £10m. The £95m conversion programme will include upgrading the stadium to provide a proper roof, corporate boxes, hospitality and catering facilities and toilets.
The stadium will still be owned by the taxpayer by a Mayoral Development Corporation (MDC), but it will be leased to a special operating company jointly owned by West Ham and Newham Council. The company will pay the MDC a commercial market rent, as yet unknown, and receive payment from UK Athletics for its 20 days of use a year. Essex County Cricket Club will also contribute revenue as will Live Nation, which will stage concerts.
Gate receipts from football will initially be used to pay a £40m loan. This is expected to take ten years. In the meantime West Ham hope to reduce their bank debt to £20.5m by 2013 and generate annual income of £100m by 2014. The club’s total debts are about £75m and they have not made a pre-tax profit since 2006. Their plan is based on attracting the same average number of fans as attend the Boleyn Ground, around 33,500.