London Stadium owners LLDC & Greater London Authority (GLA) have warned of a significant risk for future funding of the loss-making stadium, the absence of which would inevitably lead to administration. In the E20 Stadium LLP financial accounts quietly published on Friday, a note says that material uncertainty casts doubt on the partnership’s ability to continue as a going concern.
The stadium owners warn that in absence of significant changes to current contractual arrangements which include West Ham it not prepared to undertake funding for the next 12 months.
The financial accounts say: “The Greater London Authority (GLA), through LLDC, is currently supporting E20 Stadium LLP, and has made no decision not to continue to do so. However, in the absence of agreement by other parties to significant changes to current contractual arrangements, it is not prepared currently to undertake to support the partnership for the minimum period of 12 months from the date these financial statements are authorised for issue.”
“However, the need to obtain further support from the GLA constitutes a material uncertainty which casts doubt on the partnership’s ability to continue as a going concern.”
The accounts recognised losses reaching £61.5m for the year ending 31st March 2017 of which £41.7m were relating to stadium transformation costs. The total loss including future liabilities for the 2017 accounts have reached £268.2m.
A full copy of the accounts can be found at http://www.queenelizabetholympicpark.co.uk/-/media/e20-stadium-llp-audited-financial-statements-2016-17-signed.ashx
How long before we are totally homeless?! 🙁
Sounds like a lot of bluster by a Mayor who is equally as ineffective as his predecessor, Khan should just put a T after his surname because he rarely delivers anything despite a lot of rhetoric, for proof look at how many houses he has built in London despite some very bold claims. His idea is to try and shame us into paying more, won’t work with DS and DG they get called everyname imaginable its like water of a ducks back.
Simple solution, move Anniversary games to Birmingham, give West Ham the naming rights with the first £3m per year going to LLDC, strip LS185 of the operator contract and allow West Ham to run and manage the stadium at half the cost. It becomes cost neutral to the tax payer overnight
But not with the London Stadium ?…
Sounds like a ground share with another club coming?????
Share Wembley with Spurs 😉
Oh dear, this doesn’t sound good – mind it makes sense for the London Mayor and the GLA to become worried about having to keep pouring money into a bottomless money-pit which the Olympic Stadium has become.
Serious reforms are needed, you’d think the continued presence of Athletics and the ‘onerous’ West Ham contract would come under review. One thing that occurs to me is who West Ham’s contract is actually with and what happens if that body goes belly up.
Who knows? There’s big changes to come!
West Ham’s contract is with the LLDC and underwritten by the Government. Contractual obligations are passed down is the asset changes hands. It would cost the Government hundreds and millions to buy West Ham out of their contract or default on it. This is a massive game of chicken to see who blinks first
Hundreds of millions is cheaper that 2 – 3 billion ? This deal can go tits up at anytime !
Contracts can be broken ! And we could be left in no mans land , I don’t accept the we have it in writing crap because nothing is watertight anywhere in business , the bottom line is sugo get richer if it goes to the wall and west ham maybe groundless ! Something has to happen as there’s far to much talking and finger pointing going on , political or not the time may come when the 💩 hits the fan ! Nothing in business and governments are guaranteed , nothing !! Its a farce in Shakespearian terms ! Upton park is gone mate where would we go , who would want to ? Maybe we could build a new ground with the compo lol the logical thing would be Sean’s take but will it be offered ? Its wide open and festering but there’s defiantly only one winner here, the board !! 😎