Key facts
- The London Stadium deal between West Ham United and City Hall results in an annual operating loss of approximately £19 million for taxpayers.
- West Ham United pays £4.6 million in rent per year under the 99-year lease.
- The lease, signed in 2013, has no break clause for the Greater London Authority.
- The stadium company has implemented efficiencies and improved commercial deals.
- The stadium is slated to potentially host the 2029 World Athletics Championships.
The London Stadium deal between West Ham United and City Hall is costing taxpayers approximately £19 million per year, according to Lyn Garner, chair of the London Stadium LLP. Garner informed the London Assembly Economy Culture and Skills Committee that the stadium company anticipates a roughly £19 million operating loss for the current financial year.
This figure has remained consistent over time, with fluctuations dependent on the number of summer events hosted. While the club pays £4.6 million in annual rent, this amount has been reduced this season due to their relegation to the second tier. The 99-year lease, originally co-signed by former West Ham chief Baroness Karren Brady, lacks a break clause for the Greater London Authority.
Garner noted that efficiencies have been driven over several years, and commercial deals for the stadium's own rights have improved. However, the stadium company remains responsible for all overheads and maintenance of the large venue. Hosting events like concerts and Soccer Aid has provided some financial relief, but the reduction in rent due to West Ham's relegation offsets these gains.
The London Stadium is being considered as a venue for the 2029 World Athletics Championships, but there is some reluctance from West Ham regarding the potential disruption to their pitch. Garner described the relationship with the football club as historically tense, with disagreements over contractual interpretations, which she attributes to the financial pressure on taxpayers. She expressed a desire for the entire deal to be reset, though she acknowledged this is unlikely to happen.