The London Stadium has been valued at just £22.5m by its owners E20 Stadium LLP in their published financial accounts which were released late in December last year.
The company accounts which cover to the period to the end of March 2016 give a fair value assessment of the stadium which cost over £750m to build twice as £22.5m.
The fair value assessment considers the business plan of how much income the stadium could make in excess of its operating cost and what a potential un-pressured buyer would pay for the stadium in the current market. The valuation is down from £40m in 2015.
The accounts show an annual income of £3.9m for the Rugby World Cup and other events prior to West Ham moving in but the overheads and expenses totalled more than £7.8m in cost of sales so an operating loss. Another £96.2m was spent on the transformation of the Stadium.
Total losses for the year for E20 are shown at £105.1m down from £124.7m in 2015.
E20 Stadium have just four employees and is owned 65% by the London Legacy Development Agency (LLDC) and 35% by the Newham Legacy Investments (100% owned by Newham council)
Newham Legacy Investments have also published their financial accounts with companies house in January this year to show massive losses. They lent £40m to E20 LLP with an additional £2m of accrued interest at 6%. The accounts also reveal that Newham council has agreed to make another £5m of capital available to E20 Stadium and a further capital grant facility of another £5.3m on top of that.
Newham Legacy Investments reported losses of £41.5m for the financial year. After posting those disappointing results the directors said ‘that negotiations with other potential naming rights partners continue’ and that ‘E20 Stadium LLP is working with other partners to address issues arising from operation of the stadium.’
The NLI directors say they have concluded that the investment in E20 Stadium LLP should be impaired to nil meaning they see no value in their 35% share of the stadium.
For the West Ham accountants among you you can find the full company accounts below.
https://beta.companieshouse.gov.uk/company/08012276/filing-history
https://beta.companieshouse.gov.uk/company/OC376732/filing-history
Why don’t they just cut their losses and let us buy it . We did try before but Levy and Hearns smelt a £ note to be made and crabbed it for us. Now look at the **** it’s in. In the mean time, Mr Leyton Orient has sold out and Spuds have got a massive amount toward their own new purpose built stadium, curtesy of the tax payer. Oh but don’t lets mention that in the press though eh! Let’s just keep banging on about how West Ham are benefiting.Total hypocrisy. Can’t believe people can let themselves be hoodwinked like this by the press and the crafty movers and shakers behind the scenes. Meanwhile they cleverly divert all attention towards the Hammers so called wonder deal
Hey Sean didn’t I say this 3/4 weeks ago to you? The stadium is a business and it will never make money for the owners because they are tied to a lease with West Ham for 99 years that makes them next to nothing. I said if the Dave’s wanted to offer £50M then the owners would bite their hands off. The only problem with that I see is that it might not be cost efiecient to buy it as we have such a good deal already.
My guess is that Sullivan will just sit it out because if he offered to buy it now there would be public uproar so he will wait for the owners to come to him and then it will be like we are doing them a favour. By that time there will be a case to give up the athletics track
I bet Brady is rubbing her hands together ready to start negotiating!!
The initial problem was breaking European state aid rules. With us coming out of the EU we don’t know what treaties and rules we will continue to sign up to as yet. UEFA and FIFA might also have something to say about buying a stadium for peanuts that cost £323m to transform
If we knock it down and rebuild it that should keep FIFA quiet, just pay £22m for the plot if that’s what it’s worth (if only it were that simple).
Can’t really see how it concerns UEFA or FIFA.
Joint statement by UEFA and EU saying UEFA’s FFP policy is consistent with the aims and objectives of European Union policy in the field of State Aid. http://www.uefa.com/MultimediaFiles/Download/uefaorg/EuropeanUnion/01/77/21/58/1772158_DOWNLOAD.pdf