West Ham to pay fraction of yearly business rates on London Stadium
By Geraint Hughes, Sky Sports News HQ
Last Updated: 22/05/17 2:12pm
West Ham will not pay the whole of the £2.3m yearly business rate bill for the London Stadium, and the amount they will pay is being kept private.
The Hammers will pay full business rates only on areas of the stadium that they use on a daily basis. They have office space for administration and club shop for retail.
On the rest of the stadium they will only pay a percentage towards the rates based on the days it is fully used by the club, with all rates compiled by the Valuation Office.
The rest of the rate bill will be paid by E20 - a joint-venture between London Legacy Development Corporation (LLDC) and Newham Council - and both are tax payer funded.
The LLDC does get a rent return from West Ham and UK Athletics and West Ham's tenant deal with the LLDC is worth £15m a year.
A West Ham spokesperson told Sky Sports News HQ: "E20 is the owner of the stadium, which means they are responsible for the rates.
"These are calculated by the Valuation Office and are based, since it is a sports and entertainment venue, on the number of seats and the location of the stadium.
"West Ham United only use the stadium facilities on matchday so, as tenants, we pay for the share of rates on those matchdays.
"We also, as tenants with our own specific areas, are liable for rates on the Club offices, shop and warehouse. We will be separately assessed on this by the Valuation Office and this will be backdated to when we first moved in."
The London Stadium, formerly the London 2012 Olympic Stadium, has courted controversy since its inception when London won the right to host the 2012 Olympic Games.
It originally cost £429m to build and conversion costs were estimated at between £150m and £190m, of which West Ham agreed to contribute £15m and before continuing as a rental tenant.
But in October 2014, it was announced that the conversion costs jumped up to £272m and then £320m in November last year, with the total cost of the stadium now estimated at £750m.
The London Stadium is not the only council or publicly owned stadium in the UK. Manchester City's Etihad Stadium was built at a cost of £112m using tax payers money and is council owned.
City spent another £30m towards conversion costs and, as part of the deal, Manchester City Council were given the club's previous home at Maine Road in exchange.
Manchester City pay approximately £4m per year in rent including £2m a year for 10 years which allowed the football club to own the naming rights to the stadium, for which Etihad will pay £350m over 10 years.
Swansea City's Liberty Stadium, shared with the Ospreys, was built in 2005 at a cost of £27m to the local authority with Swansea paying a nominal charge. The Swans also pay the bulk of £1m per year to the running costs of the stadium.
The company that manages the Liberty - Swansea Stadium Management Company (SSMC) - has yet to publicly release any figures that show it returned a profit.