LLDC blame Stadium losses on West Ham’s low rent

Sir Peter Hendy and Lyn Garner Chairman and CEO of the London Legacy Development Corporation were grilled by London Assembly members Keith Prince and Len Duvall both of whom are West Ham fans.

Garner response was to blame West Ham – declaring:  “I have to address the elephant in the room. What’s really driving the problems here are the low rents paid by concessionaires, particularly West Ham.

The rent they pay us and the usage costs don’t cover the event day costs. Projections show we’re losing £10m to £20m a year. We’re going to be in a public subsidy position in the stadium for some years.”

“At the moment we’re looking at a five-year plan which will get us on a firmer financial footing, but it’s important that we tackle that public subsidy issue.” 

She added: “The stadium nevertheless is a core piece of the legacy of the park and its’ success is important in developing the regeneration of the local area. It’s a successful project despite this public subsidy.”

In response a West Ham spokesman said: “West Ham United initially offered to purchase London Stadium but our request was denied. We were given a tenancy agreement because we were the best offer by far on the table.

“As LLDC acknowledged at the hearing today the losses at the stadium are due to a number of factors, including the extraordinary cost of moving the retractable seating, inefficient operating costs and the absence of a naming rights partner.

“There are other commercial opportunities that they have ignored. West Ham United have offered our experience, expertise and opportunities for shared endeavour every step of the way.

“All we have ever done is honour the terms of our tenancy agreement which has 97 years to run.”