West Ham United’s battle to survive in the Premier League could have major financial consequences far beyond football after Mayor of London Sadiq Khan revealed taxpayers may be forced to cover a substantial amount if the club are relegated.
With the Hammers sitting inside the bottom three heading into the final weeks of the season, renewed scrutiny has now fallen on the controversial London Stadium agreement first signed more than a decade ago.
Sadiq Khan explains why fans should want West Ham to avoid relegation
Speaking to the Evening Standard, Khan says taxpayers could lose up to £2.5 million per year if West Ham are relegated from the top-flight because of the club’s long-running London Stadium arrangement.
He also criticised former mayor Boris Johnson over the deal that saw West Ham move into the former Olympic Stadium in 2016.
Khan described it as ‘the worst deal imaginable', and claimed the terms heavily favour the club, with the Greater London Authority still responsible for many operating costs linked to the stadium.
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West Ham currently pay around £4.4 million per year in rent under a 99-year agreement, but the GLA remains liable for stewarding and wider running costs.
If the club drop into the Championship, those costs would reportedly increase because of the higher number of home league fixtures, while commercial income linked to the stadium would likely fall.
Khan joked that Londoners “should probably be cheering on West Ham” over Tottenham Hotspur in the coming games because relegation would leave taxpayers facing a bigger financial burden.
The comments come at a tense point in the relegation battle, with the Hammers sitting 18th and Tottenham only narrowly above the drop zone after a dramatic weekend of results.
FGG says: The pressure is mounting on and off the pitch at London Stadium
West Ham’s fight for survival already looked tense enough, but this adds another uncomfortable layer to the situation.
The London Stadium deal has been debated ever since the club moved there, and if relegation does happen, the financial fallout will only bring even more criticism.
Right now, though, staying in the Premier League is looking increasingly difficult for the Hammers, so the pressure around the club is only growing.