The sum West Ham will make from a £20m stadium naming rights deal has been unveiled but there’s a major catch.
When West Ham moved to the London Stadium it was widely expected there would be a concerted drive to sell off the lucrative naming rights.
The LLDC had that responsibility but nearly eight years on there has been no deal despite coming close to agreements with Mahindra and Vodafone.
The wait for a stadium naming rights partner may be at and end, though.
It emerged this week that German finance giants Allianz and American ticket company Stage Front are involved in a ‘multi-million pound’ battle for the naming rights to West Ham’s home ground.
What West Ham will make from £20m stadium deal
As reported on Hammers News, a cash windfall is on the way for West Ham as a result of any deal worth over £4m.
Stadium naming rights deals can usually be worth anything between £5m-15m per season as listed by 90 Min.
Now the sum West Ham will make from the £20m stadium naming rights deal is unveiled but there’s a major catch.
The likes of Football Insider have claimed the deal will be worth £20m.
West Ham share anything over £4m, in a 50-50 split with LLDC. That means West Ham would be expecting around £8m from any deal worth £20m.
But there’s a big caveat.
SportBusiness has confirmed the LLDC keep the first £4m of any deal. But it has also revealed that West Ham’s share is capped at the club’s annual stadium usage fee – believed to currently be around £4m.
£8m from £20m deal but there’s a major catch
So the naming rights deal will effectively pay for West Ham’s rent for two seasons.
And while that can be offset in the club’s accounts, it’s not the major cash boost it could be if the Hammers owned their own ground.
“The 2017 Moore Group review into the stadium contract revealed the LLDC is entitled to keep the first £4m of any naming rights sponsorship deal for the stadium, sharing anything above this figure 50:50 with the Premier League side,” SportBusiness reports.
“West Ham’s share is capped at the team’s annual stadium usage fee, unless any increase in the value of the sponsorship deal is clearly attributable to club’s on-field performance.
“Outside of this, LLDC would stand to retain all of the sponsorship income generated by the wider Olympic Park, meaning the more expansive sponsorship deal with Allianz is likely to be its preferred option.
“Last year, LLDC chief executive Lyn Garner indicated the organisation would be happy for West Ham to pursue a naming rights deal for the London Stadium if the club were prepared to buy out the rights for £4m a year. But SportBusiness understands the club never responded to the offer.”
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