Text  Larger | Smaller | Default

NewsNow

Khan seeking to recoup 'staggering' stadium losses


Filed: Friday, 1st December 2017
By: Staff Writer


The Olympic Stadium is set to lose in the region of £20million per year, according to a damning new report.

And Current London Mayor Sadiq Khan has announced that he will be taking control of the stadium after calling the administrative errors that led to the vast losses as "staggering".

Embed from Getty Images


"I ordered the review into the finances of the London Stadium to understand how key decisions were made about its transformation and why costs were allowed to spiral out of control," he said.

"What has been presented is simply staggering. Not for the first time, it reveals a bungled decision-making process that has the previous mayorís fingerprints all over it.

"I am determined to put the London Stadium towards a stronger financial footing and secure its long-term future, but Iím under no illusion that this is going to take time and some real commitment from all partners to make this work."

Khan's predecessor, Boris Johnson - who signed the deal to allow West Ham to rent the arena for £2.5million per year - was also panned by Newham mayor Robin Wales.

However Wales admitted that the Borough were unlikely to see any return on the £40million loan they used to invest in the conversion of the stadium into one fit to host football.

"Those contracts have now been found to be onerous and, if the stadium is to return to profitability, they must be revisited by the new mayor of London and his team," said Wales.

"We remain committed to working with Sadiq Khan to ensure the stadium is a success in Newham."

Embed from Getty Images


The 160-page independent review, conducted by accountants Moore Stephens accused Johnson & Co of hugely underestimating the running costs involved once West Ham moved into the stadium.

For example, the £10million annual costs of moving the temporary lower tier stands at the beginning and end of every football season were budgeted at just £300,000 - meaning this represents the greatest deficit relating to the stadium - almost half of its annual losses.

The report identified five key issues that led to the current huge losses - those being the stadium's original 'non football' design, the planning for post-games use, the bid process plus the transformation and operation of the stadium.

Khan later insisted that he would be seeking to renegotiate new terms with West Ham United for the club's tenancy of the arena - although that would almost certainly incur yet more costs, with West Ham ready to fight any such plans.





Related News

   arrow   Moyes,Wenger, Merson & Ogbonna: Wednesday's news [13th Dec 2017]
   arrow   Pre-match press conference: David Moyes vs Arsenal [video] [12th Dec 2017]
   arrow   Pre-match press conference: Arsene Wenger v West Ham Utd [video] [12th Dec 2017]
   arrow   Wenger wary of newly-confident West Ham [12th Dec 2017]
   arrow   Call forth the spirit of Chelsea [12th Dec 2017]
   arrow   Merson unsure on unpredictable Hammers [12th Dec 2017]
   arrow   The opposition view: Chelsea [10th Dec 2017]
   arrow   West Ham Utd 1-0 Chelsea [9th Dec 2017]
   arrow   Hart hard done by, claims goalkeeper's union [8th Dec 2017]
   arrow   Chelsea without key duo for West Ham clash [8th Dec 2017]



Your Comments


Please note that this section is for comments relating to the above news item only. Any off-topic or abusive posts will be removed. Posts including either links and/or foul language are automatically filtered and will not be published. To engage in further discussion on any of our news stories, visit the KUMB Forums.

Not a member of the KUMB Forums? You may register for free membership here.

comments powered by Disqus
 
News Image




On This Day ...

One Year Ago
'It's a Hillsborough waiting to happen'
A number of season ticket holders have expressed their grave concerns regar...more
Three Years Ago
Sunderland 1-1 West Ham Utd
Sam Allardyce was far from happy at the decision to award Sunderland a first half penalty - but coul...more
Five Years Ago
Benayoun back at Chelsea
Yossi Benayoun has been ruled out of West Ham United's trip to the Hawthorns this weekend....more