West Ham United have signed a long-term agreement with the London Stadium which will see them use the ground as their home on a 99-year lease that began in 2016.
The Hammers are currently playing £3.5 million per year to use the stadium.
Meanwhile, E20 Stadium LLC was set up to manage the London Stadium and recent reports suggest that they are incurring massive losses.
The higher running costs mean that the E20 accounts have already racked up losses of over £300 million. In addition to that, they have had to take care of upgrades within the stadium as well.
As per the agreement, the E20 stadium are responsible for any re-configuration and degradation within the premises.
Kieran Maguire said on The Price of Football (25 September) Maguire said: “They (West Ham) pay the rent for the matches in which they participate. If you take a look at the running costs of E20 Stadium LLC, you will find that the running costs are high because E20 signed what we refer to as an onerous contract.
“Which is where you’re effectively renting out something and you’ve made such a hash of the deal and you’re locked into it for a long period of time. I was looking at the latest E20 accounts and they’ve already made losses of over £300million.
“They had a £7million floodlight upgrade, now West Ham have benefitted from that, but West Ham didn’t have to pay a penny. They’ve got an agreement with UK athletics that when there’s an athletics tournament, is that E20 Stadium are responsible for the reconfiguration of the seats. That costs an absolute fortune.”
There have been rumours that West Ham could look to buy the stadium in future, but the rental agreement costs less than the daily running costs. Therefore, buying the London stadium might not be a feasible idea.
Now thats good buisnes. Its just a shame they cant run our great football club so well. Pay the best of our best what they deserve instead of acting like morons & penny pinching ( after theyve saved so much) & they might just might be able to keep our players & continue to build a side that can compete in every field
What an idiotic comment.
Have you forgotten the Islanders left the club 180 million in debt and less than 72 hours from going bust?
Year after year they have smashed the transfer record.
Last year they spent so much we were in danger of breaching FFP rules this summer.
I have been a supporter since 1958 and a pass holder since 1967 even though I never lived within 100 miles.
I am telling you OUTRIGHT, we have NEVER had it so good as West Ham fans
I totally agree with you Ted I have been a fan since 1964/65 season. I just want us to own it outright at some point. But seems the way that E20 run it is going to nye impossible for us to that any time.
It would be nice to own it. Then we can do what we like with it and give the champions of Europe a proper home and not a glorified sports ground that you have to take the wallpaper down when they are doing some athletics of American football or pop
Concerts! Saying that I’d have that Chesney Hawkes singing at half time…
Come on you irons!