West Ham United signed what might go down as fortune changing deal with London Legacy Development Company to rent-out London’s “Olympic Stadium” for a 99 year period which in total will cost West Ham around £247.5 million, thats just £2.5 million a year. 60,000 seater stadium has been renovated and modified according to premier league rules and West ham’s deal has raised quite a few eye brows. Arsene Wenger called it “Lottery for West Ham”.
The contract between West Ham football club and Stadium owning company London Legacy Development Company (LLDC) is very favorable to hammers and reports in british media suggest a naming rights deal has been struck which will be worth around £6 million a year from which West Ham will get £1 million year. West Ham has a clause in the contract which states West ham will share 50% of any naming rights deal over £4 million.
LLDC has apparently signed a deal with a technology company and it will be announced by the end of the season. The news will make West Ham’s switch to new season even more sweater as they will be getting £1 million a year due to naming rights deal while West Ham will only pay £2.5 million a year in rent.
|PERIOD||West Ham move to Olympic stadium in 2016-17 season for initial 99 year rental contract till 2115.|
|RENT||West Ham will pay around £2.5 million a year in rent while they are in premier league. Rent will be cut to half (£1.25m) if West Ham relegated. There are number of other performance related payments. for example £1m every year for every time West Ham qualify for champions league.|
|NAMING RIGHTS||LLDC will pocket the initial £4 million a year of any deal yearly naming rights deal. beyond that club and LLDC will share 50/50. Reportedly technology company has already singed naming rights deal for Olympic stadium worth £6m a year which means West ham will pocket £1m a year.|
|COSTS||West ham paid £15 million in the total of £278 million redevelopment cost. LLDC will bear all expenses like heating and floodlighting, Dugouts, security, cleaning and pest control. All these will go under LLDC costs|
|POTENTIAL EARNINGS||West ham can expect to make around £25 to £30 million a year from match receipts compared to £20 million on average in last few season.|