Member Article

West Ham to live 'virtually rent free' as taxpayers foot the bill of new £700m stadium

West Ham United will get their home ‘virtually rent free’ as the running costs will be met by the tax payer, BBC reports.

The new £700m Olympic Stadium, which is set to open next year, was built for the London 2012 Olympics and has been acquired by the team to become its news home ground.

The London Legacy Development Corporation, the public authority that owns the stadium, has revealed some details of its rental agreement with the East London club after ex Leyton orient chairman Barry Hearn asked for full public disclosure of the deal in June.

According to the BBC, the contract shows a large number of “facilities and services” will be paid for by the grantor (taxpayer) and not the club, this includes the cost of stadium utilities, security and maintaining the pitch.

Chris Bryant, Shadow Secretary of State for Culture, Media and Sport, called for a public inquiry into the BBC’s revelations, he said: “To all intents and purposes, this is a contract which gives West Ham the stadium at a peppercorn rent at most or, to be honest, for no rent whatsoever,” Bryant told the BBC.

“The question is, if we were able to see the fuller facts and figures, which I think we should, would we be even more angry?”

In a statement, the club said: “Without us the stadium would lose money. The suggestion we are getting the stadium rent free is categorically wrong - we are more than paying our way.

“Our agreement with the LLDC will see West Ham make a substantial capital contribution towards the conversion works of a stadium on top of a multi-million pound annual usage fee, a share of food and catering sales, plus provide extra value to the naming rights agreement.

“Our presence underwrites the multi-use legacy of the stadium and our contribution alone will pay back more than the cost of building and converting the stadium over the course of our tenancy.”

West Ham has faced several budgeting difficulties with regards to the new stadium, as Balfour Beatty demanded £36m to finish the development at the end of 2014 after costs surpassed initial expectations.

This was posted in Bdaily's Members' News section by Ellen Forster .