Olympic stadium deal with West Ham collapses

A deal allowing West Ham United and Newham Council to take over the Olympic stadium after London 2012 has collapsed, Sports Minister Hugh Robertson has confirmed.

Legal challenges by Tottenham Hotspur and Leyton Orient, plus an anonymous complaint to the European Commission, have led to fears that court action could drag on for years while the stadium remains empty.

The stadium will now remain in public ownership and be leased to an anchor tenant following a new tender process.

Mr Robertson said: “The key point in the action we have taken today is about removing the uncertainty. The process had become bogged down in legal paralysis.

“Particularly relevant has been the anonymous complaint to the EC over ‘state aid’, and the Olympic Park Legacy Company received a letter from Newham Council yesterday saying because of the uncertainty they no longer wanted to proceed.

“That was the straw that broke the camel’s back and we thought it better to stop it dead in its tracks now.”

‘Not a white elephant’

“We know there is huge interest in the stadium out there from private operators and football clubs and, crucially, we remove any uncertainty,” said Mr Robertson.

“This is not a white elephant stadium where no one wants it.”

Some £35m already earmarked under the Olympic budget will be used to transform the stadium after the games. Prospective tenants will then be asked to bid for the stadium, with the running track remaining in place.

A Department for Culture, Media and Sport spokesman said the OPLC will seek leasehold football tenants as well as considering alternative options.

Mr Robertson added: “The new process will be more like how Manchester City took over the Commonwealth Games stadium, which is regarded as a leading example of how to do it.”

West Ham Vice-Chairman Karren Brady confirmed the club will bid again to become a tenant at the stadium.

Less costly

The tenants would pay an annual rent to the OPLC, which should prove to be less costly for the likes of West Ham.

The move will also remove uncertainty over the stadium ahead of London’s bid for the 2017 World Athletics Championships.

It is understood that no contract has been signed with West Ham, allowing the move to a fresh tender process.

A joint statement by Ms Brady and Newham Chief Executive Kim Bromley-Derry said they welcomed the move.

“West Ham will look to become a tenant of the stadium while Newham will aim to help deliver the legacy.”