Rumours in London financial circles at Canary Wharf have suggested that an American consortium could bid for the London Stadium to take it out of state ownership in a similar deal to the proposed £900m purchase of Wembley stadium.
The cost of building and rebuilding the former Olympic Stadium reached £753m and accumulated operating losses have added another £50m so far since its transformation.
The Stadium owners reduced the value of the stadium in their company accounts to nil and a £200 million provision for has been recognised in relation to the cost of fulfilling the West Ham United Football Club and UK Athletics agreements.
A recent London Mayoral draft budget suggested that the London Stadium will continue to lose up to £20m per year for the next four years. Unless these losses can be turned around the taxpayer could face a bill in excess of £1bn in operating losses over the lifetime of the remaining 94 years agreement with West Ham United.
A consortium could look buying the stadium for a tiny fraction of the build cost on the promise to wipe out future tax payer subsidy in operating costs.
However a West Ham insider believes the public owners would have trouble selling the stadium without the club’s agreement saying: “They can only sell to a government Dept under our agreement”
Better the Board were to form a consortium to buy the LS and turn it in to something along the lines of Man City. Revenue could still be generated for the owners from concerts/cricket etc in the close season.
I agree but does anyone know if West Ham have a clause to buy if potential buyers come in
Clause 44.1 says neither the Stadium owners nor West Ham may assign, transfer, novate or dispose of any of. or any interest in. its rights and/or obligations under this Agreement without the prior express consent of the stadium owners and West Ham. such consent not to be unreasonably withheld (it being agreed that any assignment, transfer, novation or disposal that would have the effect of impairing the rights of West Ham under the Concession Documents would be reasonable grounds for the withholding of consent by West Ham.
http://www.queenelizabetholympicpark.co.uk/-/media/qeop/files/public/concession-agreement-2016.ashx?la=en