Kieran Maguire: West Ham ‘committed to spending £320m’ amid ‘ridiculous’ claim
West Ham are “committed to spending £320million” in rent over the course of their “ridiculously long” lease agreement at the London Stadium.
So says finance guru Kieran Maguire, speaking exclusively to Football Insider about the Hammers’ contract at the 62,500-seater stadium.
The London Legacy Development Corporation facilitated the Irons’ move into the former Olympic venue back in 2016.
West Ham pay around £3m per season as part of a 99-year leasing arrangement, and the relative cheapness of the deal for the taxpayer-funded stadium has attracted criticism.
The BBC reported last Tuesday (9 August) that LLDC have reached an out-of-court settlement with legal firm Allen & Overy for their part in the deal.
LLDC originally sued Allen & Overy for £12m for alleged professional negligence in relation to the intricacies of the arrangement.
Maguire explained the terms of the rental agreement and why the Hammers have got such a favourable deal.
“The total cost West Ham are committed to with the stadium is in fact £320m,” he told Football Insider’s Adam Williams.
“If you look at page 52, note 28 of the accounts, you’ll see that. There is not only a significant upturn but they are expected to pay £3.3m in rent over the next year.
“There is a rent review every couple of years but the long-term commitment is very low.
“Remember, that £320m covers a ridiculously long agreement that favours the renter.”
In other news, pundit suggests Jarrod Bowen and Michail Antonio may be facing West Ham axe after £50m-plus development.