Kieran Maguire backs West Ham to fix 'fractured relationship' after £37m reveal
The value of West Ham could continue to soar if they mend the “fractured relationship” with their stadium landlords.
That is the view of finance guru Kieran Maguire, speaking exclusively to Football Insider about the Hammers’ rental agreement at the London Stadium.
West Ham moved into the former Olympic venue ahead of the 2016-17 campaign, and it is understood that they pay a variable rate of around £3million per season as part of the 99-year lease.
Recent seasons have been affected by pandemic shutdown but the Irons typically earn approximately £25m in annual matchday income.
This figure is taken into account in Forbes‘ annual list of football’s most valuable clubs which was published last Friday (9 September) and estimates that West Ham are worth £780m.
It is also calculated that they have increase in value by 77 per cent over the last two years and have an operating income (profit after expenses) of £37m, the 11th-highest on Forbes’ top-20 list.
Click below for exclusive transfer news
Maguire suggests that the Hammers could climb even higher if they fix their occasionally patchy relationship with London Stadium landlords, LLDC.
“West Ham have a big stadium, are located in London, and are competing in European football,” he told Football Insider’s Adam Williams.
“All of this is a positive as far as trying to determine the value of the club is concerned. You then factor in that the stadium is costing next to nothing as far as rent goes. They have a very long rental agreement as well.
“You can see the upside of them as an organisation. They did well last season in terms of where they finished in the final Premier League standings, remember.
“The relationship between the club and the landlord has been fractured at times but as that slowly starts to improve, the stadium can become more beneficial in terms of generating cash for the club as well.”