A report presented to the London Legacy Development Corporation (LLDC) Investment Committee on 9th May shows the real depth of losses being racked up by the London Stadium public body owners.
The LLDC March 2017 Management Accounts which can be found here shows the public body spent £35.54m on the London Stadium in the financial year ending 31st March 2017 against their original budget of just £7.58m, a massive £27.95m overspend.
The financial figures reveal they spent £1.32m in the month of March alone against a budget forecast of just £26,000.
A separate section of the report claims income from the London Stadium of £62,000 for the month of March and £340,000 for the whole year. These are likely to be sums paid by the operators to the owners but they totally dwarfed and wiped out by the massive losses occurred.
Newham council recently revealed under Freedom of Information that Newham Legacy Investments Limited who borrowed £40m from the council and part own the stadium with LLDC have yet to make a repayment back to the council.
Hello, Broken Record here, we will buy the London Stadium for next to nothing within the next 5 years. Maximum 5 years, for less than £50M but more likely for £10M.
The numbers are stacking up that eventually we could provide the state aid by taking over the Stadium and freeing them from all of these bills 😉
We will be like knights in shining amour no32 riding to the rescue of the tax payer 😂😂😂
It’s like a stuck record you find yourself saying the same thing over and over again – the Olympic Stadium as it’s presently set up is a money-pit and has no chance of making a profit for years to come. The policy of swapping between modes – Football, Athletics and Depeche (see what I did there!) is balmy.
It’s not West Ham’s fault, they entered into a Commercial Agreement with the current owners – who unfortunately are Public bodies – and as a result the Taxpayer will have to continue picking up the tab.
Sooner or later the LLDC and Newham have got to grasp the mettle and admit that they cannot keep swallowing these losses and either declare the operating company bankrupt or put the Company up for sale at a knockdown price.
Michael, the operating company has a 25-year contract. It would be irrelevant whether it went bankrupt or not as it is fully funded by the stadium owners. It is wholly owned by French company Vinci. They have revenue of 47 billion Euros, assets of 60 billion Euros and over 180,000 employees so they are not small. All the losses are suffered by the owners E20 Stadium LLP rather than the operators London Stadium 185
The contract says that the LLDC is still liable even if E20 Stadium LLP goes bust or if it sells or novates the park and/or stadium to someone else