Keith Wyness- Westham have SECURED one of the most IMPRESSIVE deals in football, arguably the best I’ve ever seen

The London Stadium Lease: A Deal Too Good to Pass Up?

In a recent interview with Football Insider’s Inside Track podcast, Keith Wyness, former CEO of Everton and current football consultancy owner, praised West Ham’s lease agreement for the London Stadium. Wyness described the deal as “one of the greatest I’ve ever seen,” highlighting the club’s shrewd negotiation skills and the favorable terms of the lease.

The London Stadium, built for the 2012 Olympics at a cost of £486 million, was repurposed for football after the games. West Ham United secured a 99-year lease with the city in 2016, worth £3.6 million per year. However, the stadium operates at an annual loss of £20 million, making it a financially challenging venture.

Despite the losses, Wyness believes West Ham has no incentive to buy the stadium. “The club could’ve bought the stadium at any time in the last few years – but why would they want to bring that headache on themselves?” he stated. The significant annual losses make the stadium a financial burden, and West Ham is wise to avoid taking on that responsibility.

London mayor Sadiq Khan has recently poured cold water on talk of selling the London Stadium to West Ham, insisting he considers the venue one of the city’s “crown jewels.” This stance suggests that the stadium will remain in public ownership, with West Ham continuing to lease the property.

Wyness attributes West Ham’s favorable lease terms to their skilled negotiations. “They did a great job in negotiations,” he said. “The ownership group of the stadium, which is basically the London City Council, have made losses of over £20 million a year.” The significant losses are a result of the stadium’s poor design and lack of events to sustain it financially.

The London Stadium was initially intended to be a multipurpose venue, hosting athletic events and football matches. However, this model has proven unsustainable, leading to significant financial losses. Wyness believes that the stadium should have been designed and built with the vision to turn it into a football stadium after the Olympics, which would have increased its value and reduced the financial burden.

In conclusion, West Ham’s lease agreement for the London Stadium is a shrewd deal that benefits the club financially. With the stadium operating at significant losses, West Ham is wise to avoid taking on the financial responsibility of ownership. The club’s skilled negotiations have secured a favorable lease, allowing them to enjoy the benefits of a top-class stadium without the financial headaches. As Wyness stated, it’s “one of the greatest deals I’ve ever seen.”