Plans to increase the London Stadium to a capacity of 60,000 have hit a stalemate.
With nine trouble-free games West Ham had hoped the stadium operators LS-185 would apply to Safety Advisory Group (SAG) for a 3,000 capacity to allow the sale of partial season tickets until the end of the season.
The stadium operators claim they would be supportive of such a request but ClaretandHugh understands the stadium owners would want a significant increase in rent to release an extra 3,000 seats this season and a further 6,000 seats next season.
Stadium owners E20 have spent significant extra operating costs after under estimating the cost of stewarding, policing and moving the seats in their stadium operational budget which is paid to LS-185.
Their original business case will soon be under investigation and scrutiny from the London Mayor over the long term financial viability of the London Stadium to stand on its own two feet.
West Ham struck a deal for an index linked £2.5m per year plus performance related add-ons but many still refer to it as ‘the deal of the century’. The stadium owners have also failed to conclude a stadium naming rights deal which has cost them dearly to offset operating costs.
Between 2017/2018 the London Legacy Development Corporation (LLDC) expect to lose another £8.4m in their contribution to operating costs although this is expected to reduced to a loss of £5.4m in 2018-2019. The LLDC own 65% of the stadium with Newham owning the remaining 35%.
From the outside it appears that the owners are using the club’s promised capacity increase as a bargaining chip to increase West Ham’s rent and contribution to reduce their massive losses.
Back in January Karren Brady tweeted “(We) will apply Monday at the SAG. If successful our first act will be to invite the supporters moved to block 127 the chance to move back to 114″
In February David Gold additionally tweeted: “We have applied for permission to extend the capacity from 54000 to 60000 in an effort to meet demand. dg”
A source close to the SAG has told ClaretandHugh that no such application has been made to the SAG to date and it is unlikely to happen unless a commercial agreement can be reached over the increased revenue from the sale of the extra seats.
Surprise surprise … our beloved owners lying to us again . They have made a mockery of a wonderful opportunity to have a world class venue and team by their need to do everything on the cheap . Sooner they go the better.
Bubbles, ‘Our beloved owners’… yes, that’s right. Who would rather have from the list our previous illustrious owners? The Cearns, sackers of John Lyall, instigators of The Bond Scheme, Terence Brown? The Icelnadic Bsicuit Men… how did that work out for us? Oh yes, we’ve just finsihed paying off Sheffield Utd (thanks to the two Davids, not them). I hate to slate a fellow Irons fan but you talking total tosh. Quite simply, comepletely wrong. The best owner we have had in the club’s entire history.
3000 this year and 6000 next year..so another 9000 heading for the train station after the game!!
I suppose it depends on the deal, if it is going to cost the club more than they gain then it is unjustifiable, it sounds as though negotiations are ongoing to reach an agreement. Despite being on the waiting list I wouldn’t want to see us lose the benefits of the deal we negotiated as a team we would be weaker if we had less money, I suspect the capacity won’t get increased because unless they get a significant increase in rent I don’t think the media would let them get away with it. At current prices those 9000 seats if sold without a +2 to adults might gain them £2.7 m a year assuming they were all sold at £295 which of course is not likely. Hopefully some compromise can be made but unless we hear that the club is trying to make a financial gain at the cost of the additional supporters I personally won’t judge them. I would like to know how much is being asked of the club and how much are they prepared to pay ?
Sean do you have an idea of the requested amount of the increase in rent ?
There’s no figure 32 and the Hammers will plead there’s nothing in the contract of this sort which of course is correct. Operators trying it on
I think it the stadium owners are driving this rather than the operators. If all 3,000 seats were sold as band 5 season tickets it would raise just £867,000 per year. I would imagine they want most of that if not all of it but that is only a hunch.
Thanks Sean and Hugh for the update, not sure how you guys feel but I think it would be a good exercise in PR if the additional 9000 tickets were sold at £295 and all profit from those was given to the Stadium owner to repay some of the overspend ? Might aswell sort it out before the end of the season so they can have 66000 in place next season and be the second biggest club in terms of supporters attending games in England and the biggest in London.