West Ham's record £43million profit

Meeting: 
MQT on 2018-03-22
Session date: 
March 22, 2018
Reference: 
2018/0901
Question By: 
Andrew Dismore
Organisation: 
Labour Group
Asked Of: 
The Mayor

Question

West Ham have announced a record £43million profit from their first season at the London Stadium but only pay £2.5m a year - as part of a 99-year lease - to rent the stadium from the London Legacy Development Corporation when business rates alone (included in their rent) are £2 million. In the last season the net cost to Londoners of policing their games was over £1 million. Do you think this is all fair, and shouldn't West Ham cough up at least the full cost of policing their events?

Answer

Answer for West Ham's record £43million profit

Answer for West Ham's record £43million profit

Answered By: 
The Mayor

I see no reason why West Ham United should not meet the full costs of staging its matches at the London Stadium through an appropriate rent and the club should not be receiving any subsidy from the taxpayer.

My predecessor negotiated a legally binding deal that allows West Ham United to avoid paying full matchday costs. I have asked LLDC to look at all possible measures to reduce the burden on the taxpayer without compromising safety.

E20 is defending itself against legal action brought by West Ham United which seeks to allow the club to increase seating capacity at the Stadium at no extra cost. If West Ham's legal action is successful it could cost the taxpayer more than one hundred million pounds over the lifetime of the concession agreement.