The London Stadium lost another £29m last year but West Ham are unlikely to offer to buy it any time soon.
In three words word, the place is a huge financial liability and the original business plan was badly flawed.
Although the former Olympic Stadium cost over £750m to build it continues to lose taxpayers money at the colossal rate.
So even if a buyer could be found for the loss-making stadium new owners would almost certainly be looking for a major government subsidy – maybe as much as £200m – to take on the massive risk.
Onerous contracts with UK Athletics, West Ham United and Delaware North mean it would take tens if not hundreds of millions to buy them out or renegotiate.
Each West Ham game costs £280,000 to host at the full 60,000 capacity with only £150,000 per game coming in rent the way from the Hammers.
Add to that over £3m in local council rates plus massive insurance premiums, the staff to operate and maintain it and the expensive roof which is only designed to last ten years.
Suggestions that West Ham would be prepared to buy the Stadium for one pound could not be more wrong!
The Hammers would insist on a large government subsidy which probably wouldn’t be palatable to politicians.
However, West Ham taking on management and operations seems a much much realistic proposition in the short term and could suit both parties.
Your last bit makes total sense. WHU couldn’t do a worse job than the muppets running the show now. It’s actually a burden for countries to host top sporting events like the Olympics as top revenue is never reached and only the higher ups get to make money. As is with everything that happens. London did need rejuvenating without doubt – especially the East End, which could’ve done with a total flattening. Who knows though – maybe new billionaire owners would but the LS and truly make the area WHU…I could then thrive on taking my bestey, who is an Os fan, around every bit of the area and rub WHU in his face…what could be any more joyous than that…COYI
I am suggesting we could operate the stadium for the government and save them lots of money it is impossible to make a profit or break even but from a business point of view a massive risk to buy it even for a pound. If the government bought out all existing contracts it might be a different situation
Sean, I don’t disagree with anything in the story. Completely agree with what you say. But isn’t this an almost word for word repeat of what you said the last years’ financial results were published? Nothing really new.
One thing I would add is that it shows the folly of the bid by the club & Newham Council to buy the stadium being blocked, It would have saved the public purse money & allowed the stadium to be operated as you suggest.