London Mayor Sadiq Khan is to take over control of the London Stadium after ordering the investigation after it had been revealed that the bill to taxpayers for converting the centrepiece of the London 2012 Olympic and Paralympic Games into a multi-purpose venue had climbed to £323million.
The London Legacy Development Corporation (LLDC), the body which operates the stadium for the Greater London Authority, admitted problems with the venue’s retractable seating were the biggest cause of the rise in costs.
The Hammers, who have a 99-year lease on the 60,000-seat stadium, made a one-off contribution of £15million to the conversion costs and pay £2.5million a year in rent.
The total price tag for the stadium, which also has a new roof, is estimated to be £752million.
Mr Khan commissioned a review by forensic accountants Moore Stephens in March 2017, and the 169-page report warned the cost to the public is never going to be recovered, while the stadium would also continue to lose up to around £20m every year.
West Ham issued a statement in response to the report, which said the club had “entered a fair and competitive tender process” as they were selected as anchor tenant.
The Premier League club view the Concession Agreement signed in 2013 as “a watertight, legally-binding contract” and remain “absolutely committed to its terms for the entire 99-year duration”.
A West Ham United spokesperson said, “As the report confirms, the Concession Agreement is a watertight, legally binding contract signed in 2013 in good faith by West Ham United, who remain absolutely committed to its terms for the entire 99-year duration.
“We have delivered everything we committed to within the Concession Agreement, and act as the primary vehicle for London Stadium’s legacy, delivering its most watched sporting spectacles, revenue driving events and thousands of jobs for local people.
“It is not in West Ham United’s interests for the Stadium to not be performing in line with aspiration and, as we have done ever since moving to Stratford in the summer of 2016, we continue to offer the benefit of our commercial expertise and substantial experience in managing successful stadia.
“West Ham United will continue to devote our absolute commitment to London Stadium, but our first priority in this sense is always to act in the best interests of our supporters.
“We fully concur that West Ham United has played a significant part in the most successful regeneration programme in the history of the modern Olympics, however the stadium itself craves renewed leadership and direction and we welcome the Mayor’s decision to step in and deliver this. West Ham United is firmly behind him.”
