Friday, April 15

That stadium deal

So Barry Hearn says his dog could have got a better deal on behalf of the taxpayer. Viewers of The Apprentice shouldn't be that surprised that Karren Brady negotiated a decent deal for the Olympic Stadium, particularly when West Ham also have hardened businessmen David Sullivan and David Gold up against a load of quango people in suits trying to shift a used white elephant from their lock-up. 

Now the deal has finally gone public a rent of £2.5million a year should be eminently affordable to a Premier League club getting the new TV rights deal, though it's pleasing there's a relegation clause that reduces the rent to £1.25 million a year should West Ham go down. There's an option for reducing the rent after 20 years if West Ham forgo their naming rights share at that point. We've also done well to get the landlord to stump up for the goalposts, stewarding, dugouts, changing rooms, security and cleaning, though it's a pity they couldn't include a gratis pint of craft beer for every fan at home games in that. 

The LLDC will have the chance to claw more money back through the first £4m of a naming rights deal and the first 500k pa of catering money and will get a cut if the club is sold. The LLDC also get £1 million when we (perhaps) win the Champions League and bonus money for high league placings, Europa League qualification, etc. The Stadium might have cost £701 million of public money with West Ham putting just £15million in, but you can't blame West Ham for that; we've effectively saved the stadium from going the way of Greece's rusting Olympic relics.


mj said...

Am I correct here? Didn't we want to buy the stadium but ORIENT and SPURS put in legal objections which meant we had to rent it? Didn't HEARN say the stadium was not fit for football with the running track?

Pete May said...

I thought it was always only for rent? Not sure why Hearn thinks Orient could fill it… whole saga has dragged on so long I'm confused as well.

mj said...

Combing through what's left of my memory, I find that we were chosen as buyers of the stadium. Spurs, Orient raised legal matters and the process needed to be gone through again, this time renting not buying. We were chosen again because Spurs wanted to knock it down and Orient didn't want to keep the running track. Now they complain about us renting it! Rant over. Thank you.