West Ham United football club will pay 2.5 a year in rent for the Olympic stadium.
In a Legal tussle between London Legacy development Corporation andwest Ham FC,the information tribunal ruled that West Ham FC will pay a yearly rent of 2.5Million.The decision also upheld that west Ham will pay the following
- £100,000.for any event year in which concessionaire wins the FA Cup.
- £100,000 for any event year in which the concessionaire wins the Europa League
- £250,000 for any event year in which the concessionaire qualifies to participate in the Champions’ league group stages in the following year.
- £1000, 000 for any event year in which the concessionaire wins the champions league.
The rent will be halved if West Ham goes on relegation.
Officials from the London Legacy Development Corporation said they were “disappointed” by the decision.
“We are disappointed by the Tribunal’s decision.
Our motivation in bringing this case has been to protect millions of pounds of taxpayers’ money.
The Stadium needs to be a profitable and successful commercial operation otherwise it will rely on public subsidy.
We were concerned that the publication of this contract and the precedent it may set for future agreements could make it harder to do this.
However, we have decided not to seek leave to appeal, and have today made the contract available on our website.
– LONDON LEGACY DEVELOPMENT CORPORATION SPOKESPERSON
But fans praised the information tribunal for “standing up for what is right” as Olympic Stadium LLDC appeal rejected in full.
“We’re naturally delighted with the outcome, as we see this as an issue of fairness to the taxpayer, to clubs near and far, and to football as a whole. We now respectfully request that the LLDC do what is right, waive the right to an appeal, and publish the deal in full so that it can be properly assessed and its implications understood.
Naturally, due process has to be completed, and though the LLDC’s appeal has been dismissed, it will be their decision as to whether they want to continue to pursue a case that has fallen at every hurdle – with the further financial cost to the taxpayer that will bring.
We believe that the tribunal stood up for what is right, namely the right of members of the public to know how their assets are being used, and money is being spent.
The very reason we launched this campaign was because there was considerable doubt about the use of a major public asset, and the money being spent. Don’t forget that these are terms granted to a privately owned business: a Premier League football club who will next year be in receipt of more than £100m per-season just for turning up.”
– FANS COALITION SPOKESMAN
The coalition of 14 supporters’ trusts and groups demanding the publication of the full financial terms of the contract between West Ham United and the London Legacy Development Corporation (LDDC) said they were satisfied by the decision
The failure of the LLDC to convince the judge means that the original decision by the Information Commissioner (ICO) ordering the publication of the terms must be enforced.
It also means that the information sought by the coalition, MPs, the entire Greater London Assembly and thousands of members of the public will now have to be published.
The Mayor of London, Boris Johnson MP, said he had no problem with the deal.
I have always made clear that I have no problem with the contents of the deal with West Ham being published, so long as it does not impact on the Olympic Stadium’s ability to generate revenue for the taxpayer.
Lodging the appeal to protect the Stadium’s competitive advantage was the right thing to do when public money is at stake, but we must respect the Tribunal’s decision and honour our commitment to transparency by making full details of the contract available for all to see.
– BORIS JOHNSON
In a statement on their website, West Ham made it clear they had no objection to the contract being made public.
“This publication does not affect West Ham United or our move to the former Olympic Stadium in any way,” the club statement said.
“From our perspective, we welcome the publication of the concession agreement as it proves that, as we have always maintained, the club has nothing to hide.
“We firmly believe it is a great deal for both West Ham United and also the taxpayer.”
West Ham hope their on-pitch performances this season show additional future revenue can be generated.
The club statement added: “While someone renting the stadium for 25 days a year cannot be responsible for 365 days’ running costs, going by our performances this season, we hope to deliver additional revenue to the stadium via extended cup runs and big European nights.
“This will secure the international exposure and additional usage and revenue that may now be more challenging for the stadium owners to find elsewhere as a result of this ruling.”
Culled from itv.com