West Ham United's London Stadium Deal Costs Taxpayers £19m a Year

The long-term deal between West Ham United and the London Stadium has been revealed to cost taxpayers £19m a year. The agreement, signed in 2013, has been criticized for its financial implications.

What Happened?

The deal, which lasts 99 years, has been criticized by London Mayor Sir Sadiq Khan, who blamed his predecessor for failing to obtain better terms. The agreement includes a clause that sees the club pay less than half the £4.6m annual rent they were responsible for before their Premier League relegation last season.

Why it Matters for West Ham United

The financial implications of the deal are significant for West Ham United, who are currently 18th in the Premier League with 39 points from 38 games. The club has scored 46 goals and conceded 65, with a goal difference of -19. They are 46 points behind leaders Arsenal in the title race.

What Comes Next?

The London Stadium's chair, Lyn Garner, has outlined five measures to help mitigate the annual losses, including moving WHUFC Women to the London Stadium at the club's expense. She also suggested seeking permission to hold more major non-football events and exploiting surrounding land for food, beverage, and leisure developments.

The Financial Impact

The financial loss is not unusual, according to Garner, who said it has been in this ballpark for some time. However, the current financial year has been a particularly bad year for London Stadium, with only two summer concerts held. This year has been a bit better, with five concerts and Soccer Aid being held at the stadium.

The Relationship with West Ham United

Garner described the relationship with West Ham United as "tense," with disagreements over interpretations of the contractual piece. She said the club's relegation has led to reduced rent payments, exacerbating the financial loss. However, she also acknowledged that the club has been a good negotiator in the original deal.

Conclusion

The financial implications of the London Stadium deal are significant for West Ham United, who are currently struggling in the Premier League. The club's relegation has led to reduced rent payments, worsening the financial loss. However, the club's management is working to mitigate the losses and find ways to improve the financial situation.