Football finance expert Kieran Maguire has lifted the lid on the shocking value of West Ham’s London Stadium as its owners release statement of accounts.
Speculation has long surrounded the future ownership of West Ham’s home ground the London Stadium.
Last season we reported on claims that West Ham were open to buying the stadium.
But it was claimed the Hammers’ attempts to hold talks had fallen on deaf ears.
The Times’ Chief Sports Reporter Martyn Ziegler even reported that West Ham co-owner Daniel Kretinsky could buy the London Stadium outright as part of an eventual full takeover.
An architect gave Hammers supporters a glimpse of just how amazing a West Ham-owned and redeveloped London Stadium could be with concept images.
Maguire on shocking value of the London Stadium
As West Ham fans know, their club are only anchor tenants at the ground – which is owned by E20 Stadium LLP.
A football finance expert and friend of Hammers News has been unpacking their latest figures.
And Kieran Maguire has lifted the lid on the shocking value of West Ham’s London Stadium as the owners release a statement of accounts.
The Government spent £486m to build the London Stadium for the 2012 Olympic Games and spent the majority of an additional £274m to convert if afterwards. West Ham paid £15m of that conversion, while Newham Council contributed £40m.
Now Maguire has highlighted its value to be a big fat ZERO. And he says that is because West Ham’s 99-year rental agreement is so good and long that anybody buying the stadium ‘would not pay a dime for it’.
Maguire also points out that operating losses of the London Stadium are estimated at almost £232 million.
Cost £760m, worth £0
“E20 Stadium LLP, the company that owns the London Stadium (and is therefore West Ham’s landlord) publishes 22/23 accounts,” Maguire said.
“Looks on the face of it a profit of £24m made but all of that and more is due to technical dweeby accounting issues, it made a significant cash loss in practice.
“E20 has assets worth £19m and liabilities of £307m, it is propped up by the taxpayer.
“As mentioned before, E20 made a cash loss of £21m as highlighted here, interest rate movements created the artificial accounting profit previously shown. E20 had to ask for £26m from local authority owners and borrow almost £9m to cover these losses and infrastructure costs in year.
“London Stadium is valued at £0 in the books of LLP. This is because the rental agreement with West Ham is so good (and long) for the club that anyone buying the stadium wouldn’t pay a dime for it.
“E20 earned £4m rent from West Ham in 22/23. The costs of moving seats etc between football & athletics was £11m & general overheads, insurance, rates etc was a further almost £19m. The expected future operating losses of the London Stadium are estimated at almost £232 million.”
You can see the figures highlighted in the accounts here.
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