The previously confidential agreement between the LLDC/Newham council and West Ham United has finally been published this morning. To save you reading through the legal 207 page document which can be found here we have summarised the main facts below for you:
West Ham contribution to conversion costs: £15m
West Ham Stadium rental: West Ham will pay a rent of £2.5m per year in the Premier League for the first 25 games and £100,000 per game for any additional games beyond that per year. The rent includes exclusive occupation of the club store, ticket office, board room, player’s lounge, office space and storage areas. The rent is index linked so will increase with inflation.
Relegation clause: West Ham’s rent will halve to £1.25m if they are relegated from the Premier League and remain discounted until they are promoted again.
Champions League clause: West Ham will have to pay up an extra £1m in rent for the Olympic Stadium any year they win the Champions League. West Ham will have to pay up an extra £250,000 in rent for the stadium any year they qualify for the Champions League group stage
Cup Clause: West Ham will have to pay up an extra £100,000 in rent for the Olympic Stadium any year they win the FA Cup or Europa League
Europa league clause: West Ham will have to pay up an extra £100,000 in rent for the Olympic Stadium any year they qualify for the Europa league
Stadium Naming rights: The first £4m of any naming rights deal will go to the stadium owners, with anything above that shared between the owners and West Ham on a 50/50 basis. West Ham’s share of the naming rights in capped to all monies paid to the stadium owners in rent and performance payments. This means if the stadium naming rights were sold for £10m per year we would pay nothing for use of the stadium.
Pitch side advertising rights: West Ham will retain 90% of the pitch side advertising rights on match days.
Catering rights: West Ham share 30% of catering revenue at the Olympic stadium on anything over £500,000 each year.
League position clauses: West Ham will pay extra £25,000 in rent if they finish 10th in the Premier League, £40,000 for 9th, £55,000 for 8th, £70,000 for 7th, £85,000 for 6th and £100,000 for a top five finish in the Premier League.
West Ham sell on clause: E20 Stadium LLP would receive a payment of £9.2m & £11.2m West Ham is ever sold between £125m and £149m. They would receive a payment equalling 10% (£15m & £20m) if West Ham is ever sold between £150m and £200m. The payment would increase to 20% (£40m & £60m) if West Ham is sold between £200m and £300m in the first 5 years and 30% (at least £90m) if the club is sold for over £300m in the first five years. If West Ham is sold for over £300m between the 6th and 10th year of occupation of the Olympic Stadium then 20% of the selling price is due to the stadium owners. If the club was sold for £500m in 9 years time then £100m would be due to E20 Stadium LLP.
Community Clause: West Ham will need to comply with the community clause to offer up to 100,000 general admission tickets free charge of charge to residents of Newham and/or community groups, charities, clubs and similar organisation each football season.
Stadium maintenance clause: The stadium owners are responsible for all utilities including heating, power, light and water. The cost and maintenance of the pitch, under soil heating, flood lighting, goal posts, goal nets, corner flags, dug outs and changing rooms. The stadium owners will cover the cost of policing, stewarding, security and cleaning.
Sharing clause: West Ham are entitled to a 50% discount on their rent £1.25m if they share the Olympic Stadium with any other football club that use the stadium as their home ground.