London Stadium operator LS185 has been brought in-house by Stadium owner E20 in another attempt to put the venue on a firmer financial footing have confirmed the London Assembly in a press release. The London Legacy Development Corporation will now directly control the former Olympic Stadium they add.
Gareth Bacon AM, Chairman of the Budget & Performance Committee, said: “We welcome the move to bring operations at the London Stadium in-house. The Committee has questioned why the management structure was so elaborate. This is especially relevant when the London Legacy Development Corporation is so reliant on the public purse.
“LS185 promised to run matchdays at a profit but could never live up to the hype and last year it cost the LLDC £3.5 million instead. We have stated repeatedly that the LLDC needed to get a firm grip on the legacy venues. This move is an example of a positive step in that direction.”
A statement on the London Statement website says “E20 and LS185’s parent company VINCI Stadium came to the agreement so both businesses could move forward in the direction that matches their priorities.”
The operational focus remains on safety and security for all events, but the agreement is also an important step in the progress which has been made in getting the London Stadium on a firm financial footing.
It means there will be improved opportunities to maximise the fantastic potential of the venue which is already one of the biggest multi-use stadium in the UK. The current leadership team, which has delivered a host of world-class events for the Stadium will remain under the new ownership. E20 has appreciated having VINCI Stadium as a partner in delivering an extensive calendar of events such as this year’s sold-out Major League Baseball, West Ham United home fixtures, international athletics, Premiership Rugby Union and concerts. Events will not be affected by today’s announcement.
Lyn Garner, CEO of LLDC, said:
“I made it clear to the London Assembly that we were taking action to make the most of this fantastic asset for London. Now that we directly control the operation we have a simplified structure and this will give the existing leadership team the freedom to drive the Stadium forward. The Stadium is central to our Olympic legacy and the best multi-use venue in the UK. We are making real progress in making it an even better stadium for those holding events, for the millions of visitors who come to it and for all Londoners.
“In the last few weeks we have come to an agreement with West Ham United concerning the ground capacity and agreed a new deal with UK Athletics which helps us both to maximise the potential of the London Stadium. We want an Olympic legacy that endures, and we can now work even more closely with our partners to achieve that.”
Graham Gilmore, Chief Executive of LS185, said:
“Today’s announcement allows us to build on the successful and world-beating events we have been putting on at the London Stadium since the Olympic Games.
“We have a brilliant calendar of events lined up including the rest of the football season, a Saracens rugby match, a concert from Muse, and Major League Baseball. As a team, we are proud to deliver these, and are looking forward to embracing the opportunities that the new structure will bring.”
Sir Peter Hendy, chair of the LLDC, said:
“In the last year our team at LLDC have taken a real grip at the London Stadium. Events, such as 2017’s World Athletics Championships, this summer’s baseball, and football from the greatest league in the world, have already brought millions of pounds in to London’s economy and the London Stadium is a great asset for the city.”
Claret and Hugh say: This is a welcomed change in moving forward to remove an onerous 25-year-old supplier contract, however, questions do need to be asked at what cost the taxpayer was this binding contract bought out? Vinci stadium would not have given up a profitable contract with 21 years to run without being compensated to the tune of millions possibly many tens of millions. Being a public body, the true finances of this deal will eventually be made public either in the LLDC draft budget, a London Assembly budget scrutiny committee or a Freedom of information request.
LLDC under the leadership of Lyn Garner will now be under pressure to show they can run the stadium day to day more efficiently than the French operator who had years of experience around the world. We can’t help but think they LLDC would be better off in approaching West Ham to take over the match day operations including stewarding if they want to save money while keeping supporters safe.
Considering this statement is by the same people who are costing the tax payers millions in holding a baseball event for the vanity of the Mayor it is difficult to judge them at this point except that at every step in the journey so far they have been making poor decisions. If they do decide to let us manage the club on match days then perhaps there is a silver lining but if not well time will tell.