The GLA budget is a billion pounds affair. Trivial sums don’t really matter but the West Ham United stadium scandal does empty the pockets of Londoners. It’sa £20m a year debt in the accounts. Keith Prince, Havering’s GLA member, opened the topic – the entire exchange is below – with the Mayor. He didn’t land a blow.
The contract was negotiated by Boris Johnson. It stinks (see Addendum). It’s so bad that an unkind observer might say it was corrupt. Huge losses are paid by the GLA – or, to put it another way, you. The £20m is just under the Havering deficit for 2026-7. That deficit is driving the borough into bankruptcy. £20m is a triviality to GLA accountants but is life-or-death for Havering.
Keith didn’t mention Havering. Nothing at all. The exchange between Keith, the Mayor and the Chief of Staff was too pally, too cosy and too complacent. Keith says – with a straight face – that he endorses Reform UK’s slash and burn attitude towards local government finance. Well, he should have linked the WHU/London stadium stitch-up with Havering’s financial situation. Havering’s wallet is emptying by an annual £500,000+.
The London Stadium was the showpiece of the 2012 Olympics. A national treasure. And now? Its current value is ZERO! NOTHING!
There were mealy-mouthed equivocations. No one cares. Keith was on the right track but didn’t, or couldn’t, follow through. Perhaps, he’s still in thrall to Boris ‘Partygate’ Johnson who negotiated the contract?
Solutions? What one bunch of smart-arse lawyers put together another bunch of smart-arse lawyers can undo. Or, the GLA could use hard ball politics. Naming rights were cited as being an ASPIRATION. But what do we see blazoned across the stadium: WEST HAM UNITED. Do they pay for the privilege? Who knows? Who cares? Have GLA lawyers been to the London Stadium? Do they know what is going on? No, they don’t.
The losses will massively increase if WHU get relegated to the Championship next season. Havering will be under more financial pressure from Boris Johnson’s toxic legacy. Meanwhile WHU pay huge amounts of money on players, most of whom are, or become, hopeless.5
The GLA Debate: Keith Prince’s contribution
Keith Prince AM: Thank you, Chair. Good afternoon, Mayor, David, team. Just before I start, I will declare that I am a season ticket holder of the West Ham [United Football Club] Women’s team, just for clarity, because I intend to ask a question relating to West Ham. Mr Mayor, LLDC sold the London Stadium to GLA Holdings. Could you explain the reason for that move, please?
Sir Sadiq Khan (Mayor of London): Firstly, before I ask the Chief of Staff to respond, I hope we are still talking after Sunday. It is a big game on Sunday for both of our teams!
Keith Prince AM: I am very much hoping we will be talking. I will settle for a draw. How about you?
David Bellamy (Mayor’s Chief of Staff): This is part of the transition that took place at LLDC as it reached — we say LLDC is now in its third phase. The first was the run up to the games [2012 Olympics]. The second was the period after the games and then, with so much progress made, it is time to transition. With LLDC becoming a smaller organisation, the conclusion that we reached was that rather than E20 – as it was then called – being a subsidiary of LLDC, in turn a subsidiary of the GLA, it would be better done just to be a standalone company directly underneath the GLA.
Keith Prince AM: I will ask another question of the Mayor, but I am quite happy for you to answer, David. As we know, the deal cost GLA Holdings £1. That reflects the fact that London Stadium makes a significant loss each year. Who is now going to bear the burden of that loss, and what moves have been made to reduce that loss? (see Addendum) As people will be aware, for the last ten years, I have been encouraging LLDC to engage with West Ham in order to find a naming rights sponsor, which most people estimated would be of a value of around £4 million. Because it has not engaged with West Ham and because that deal has not been done so far, one could reasonably presume that it has lost £40 million. Either Mr Mayor or David, will there now be encouragement for the new holding group to engage with West Ham and to have a joint venture in relation to the naming rights? It cannot be done solely by GLA Holdings because of the rules around the Premier League.
David Bellamy (Mayor’s Chief of Staff): In answer to the first part of your question, Assembly Member, in terms of the losses the stadium makes as a consequence of the deal that was done by the previous Mayor, it routes differently. It used to route through LLDC, and it now routes through the GLA Mayor budget but, ultimately, the Mayor’s overall budget has to bear the consequences of that loss. What we do is we work hard to minimise that loss. There are clearly a number of aspects to that. There is the efficient running of the stadium. There are invest-to-save projects. For instance, over the years, we have replaced a lot of the seating in the lower bowl so that it is cheaper to move seats for other events. We have held additional events. There are commercial deals. In terms of naming rights specifically, it is a difficult market. You can see that with some other notable stadiums not having successfully secured naming rights. Any deal has to be one that will work for us and will work for West Ham as well. It is not accurate to say that this is something we have never worked with West Ham on, and there are there are discussions with it going on at the moment and, clearly, we always want to work well with West Ham –
Keith Prince AM: A quick question, please. Also, as part of the scaling down, Mr Mayor, you know that the planning powers have now been returned to Newham. I understand why that is done, but do you think that is sensible? Newham is the fourth worst borough for planning applications. Would that put at risk any developments coming forward?
Sir Sadiq Khan (Mayor of London): Let me just say, it was always the intention to give back to the councils the powers that had been taken from them. There were five boroughs involved in terms of the original LLDC. All of them now have their planning powers back. Do you think it would be wrong if we carried on in perpetuity the planning powers? Each council is in charge of applications in its respective borough.
Minutes – Appendix 2 – Questions to the Mayor.pdf
Addendum: The contract Boris Johnson *negotiated* with West Ham FC
1 Notably, West Ham United pays a relatively modest rent of £3.6 million per season, which covers none of the stadium’s upkeep costs such as heating, cleaning, or maintenance. This situation is compounded by the fact that West Ham retains all ticket revenues and a portion of the catering income, further skewing the financial equation in favour of the club. Source: Report: West Ham’s £20.9m London Stadium Loss Hits Taxpayers Hard | OneFootball see also London Stadium – Wikipedia
2 The annual loss is £20.9m which the GLA finds out of its budget. Source loc.cit
3 This financial situation has led to the venue’s long-term value being assessed at zero by independent experts, a stark indication of the economic challenges it faces. Source loc.cit
4 All emphases throughout this blog are mine.
Politics in Havering 