January 13, 2024
Was the deal of the century too good? Is West Ham's residency at the London Stadium in peril? 💼 Explore the brewing concerns around taxpayer subsidies and the financial strain caused by onerous contracts.
In this eye-opening update, we delve into the financial intricacies of West Ham's stadium deal and the potential ramifications for both the club and the taxpayers. Discover the shocking revelation that the stadium's owner, E20 Stadium LLP, took legal action against the law firm Allen & Overy over alleged negligence in brokering the deal that granted West Ham a 99-year lease in 2013.
The fallout from this legal dispute resulted in a reported seven-figure settlement, shedding light on the questionable aspects of the initial agreement. The London Stadium's financial woes are further highlighted by the revealed revenue of £6.3m for the last year (to March 2023), with £4m coming from West Ham in rent. However, the operating loss of £11.5m raises serious concerns about the sustainability of the current arrangement.
E20 Stadium LLP's accounts disclose an exceptional one-off revenue of £8.5m due to legal disputes with West Ham and Allen & Overy. Despite this, the fair book value of the London Stadium is listed as nil, rendering it essentially worthless as an asset. Unravel the complexities as E20 Stadium LLP grapples with a £90m loan and accrued interest owed to LLDC.
Furthermore, ominous provisions in the accounts hint at future losses amounting to £232m, stemming from onerous contracts with both West Ham and UK Athletics. As the financial storm brews, the crucial question arises: Could London Mayor Sadiq Kahn seek to have West Ham removed from their cherished ground?
Stay tuned for updates on this unfolding saga that could reshape the future of West Ham's residency at the London Stadium. 🏴⚽ #WestHam #LondonStadium #TaxpayerConcerns #FootballFinance #LegalDispute
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Good for Nothing Safety by Twin Musicom is licensed under a Creative Commons Attribution 4.0 licence. https://creativecommons.org/licenses/by/4.0/
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