West Ham’s Olympic Stadium catering ‘partner’ has failed to make any profit on it’s two primary catering contracts in the UK with Wembley and Arsenal’s Emirates Stadium.
Last week’s publication of the Olympic Stadium agreement confirmed West Ham will earn a 30% share of catering profits after the first £500,000 of profit is paid to stadium owners E20 Stadium LLP.
But American sub contractor Delaware North (Wembley) posted pre tax losses of £3.9m for it’s Wembley Stadium contract in 2015.
Turnover at the contract was down £3.9m year-on-year to £23.8m, while pre-tax loss increased to £2.3m from £279,885 in 2013, according to documents filed at Companies House.
A statement within the accounts say “We therefore continue to look for appropriate additional new business opportunities and we were delighted to be awarded a long term contract to operate the former Olympic Stadium [renamed South Park Stadium] from June 2015, which includes UK Athletics and West Ham United as key tenants,”
It’s other UK division called Delaware North Hospitality Services, which operates at Arsenal’s home ground the Emirates, and IPro Stadium, home to Derby County Football Club, saw its pre-tax loss rise from £736,182 in 2013 to £1.2m despite turnover growing to £19.1m.
The news must raise serious doubts how much profit if any can be made at the former Olympic Stadium and whether West Ham will ever see any of it in the profit share agreement.
Catering company Elior currently runs the existing contract for the Boleyn ground catering and hotel which ends in June. The company says that contract is worth almost £5m per year at present which means West Ham will be giving up significant catering income when they move to the former Olympic Stadium in August.