A couple of weeks ago when we revealed Chelsea’s new sponsorship deal with Turkish airline we used the term “football is money” and that is even more true when we talk about English premier league. West Ham United who play their home matches at Upton park which has the capacity of 35,016 and its pretty much sold on most of the home games for hammers. But their is a massive news for West Ham fans as the club has agreed to take the London Olympic Stadium on 99 year lease starting from 2016-17.
Here are some of the details and how significant this move might turn out to be for West Ham United, according to the leasing contract West Ham and LLDC will share the matchday, ticketing and catering revenue plus their might be a massive stadium naming right deal which will be announced soon and all the revenue from naming right deal will also be shared between West Ham and London Legacy Development Corporation.
|Leasing period||99 years (starting from 2016)|
|Yearly Rent West ham has to pay||£2.5 million (£1.2million if relegated from premier league)|
|Upfront Free West Ham has to pay||£15million|
|Stadium Capacity||54,000 (it was 80,000 but after conversion it will be 54k)|
|Revenue Sharing||LLDC will share the matchday, ticketing, catering and stadium rights revenue with West Ham United|
|Expected yearly matchday income for West Ham||£35m to £40million|
|100% revenue from corporate sales||West Ham has reached agreement with LLDC to retain all the corporate and premium packages revenue from matchday experience.|
|All things aside this move might turn out to give a new life for West Ham as they will be able to financialy challenge the likes of Tottenham and Liverpool in premier league.|
West Ham will retain 100% revenue from generated from corporate & premium packages:
So this might have big impact on West Ham’s yearly revenue and will certaint to generate massive windfall year after year. Olympic Stadium has almost 3500 premium seats and there are 16 super exclusive boxes plus many premium packages from which West Ham generate more revenue compared to what they are currently getting from Upton Park.
West Ham’s current matchday yearly revenue is around £18million a year and move to new stadium with the seating capacity of around 54,000. According to recent estimates this stadium move will bring in around £25-£28 in yearly revenue. West Ham will only have to pay around £2 million in yearly rent to LLDC
What if West Ham United get relegated from premier league ?
Well according to the lease contract West Ham will pay alot less yearly rent if they got relegated to championship and they wont have to pay the £15million to new stadium untill they manage to sell off their Upton Park stadium. West Ham will are likely to sell Upton Park to Galliard Group in coming years.