West Ham United relegation to cost London taxpayers millions
West Ham United’s relegation from the Premier League to the Championship will cost London taxpayers millions with the capital losing a top flight club once again.
West Ham United and Tottenham Hotspur went into Sunday’s final round of matches knowing one of them would be relegated and, despite a 3-0 win over Leeds United, it was the Hammers that will play in next year’s Championship.
But a 99-year lease deal signed by former London Mayor and Prime Minister Boris Johnson in 2012 when West Ham agreed to ditch their Upton Park home for the Olympic Stadium, dubbed by current Mayor Sadiq Khan as “the worst deal imaginable”, will now cost the London taxpayer millions.
Their current rent, £4.4m per year, was always seen as generous when former board member Baroness Karren Brady negotiated the club’s move to Stratford. But relegation means payments to City Hall could diminish by £2.5m per season, according to the Mayor.
“West Ham’s London Stadium deal remains a significant taxpayer burden,” Professor Rob Wilson told City PM. “The latest public accounts show that the stadium operator lost just over £20m and that’s despite West Ham United paying almost £5m in fees.
“West Ham United have a rent reduction clause built into the contract upon relegation which reduces their payment by £2.5m per year, according to the Mayor.”
West Ham United savings to cost taxpayer
Notes in the London Stadium LLP accounts for the year to 31 March 2025 said that the “fair value of the stadium is nil and is based on the long-term financial outlook of the partnership and onerous contract provision it is liable for”.
The taxpayer hit comes with West Ham reportedly reluctant to vacate their east London home in the summer of 2029 to accommodate a British bid for the World Athletics Championships.
Hugh Brasher, who is part of the London 2029 bid team, said at the time: “Football is an interesting, very tribal, sport. Money talks. But sometimes people look at their heart, they look at their soul, and that’s the purpose.”
Added Professor Wilson: “The wider impact is twofold. There will be more pressure on public finances to make up for the shortfall, and the club itself could lose around £100m in broadcasting and commercial revenues; albeit parachute payments for relegation will soften the blow.
“That trickles into the local economy because attendances are likely to drop as well.”
The London Stadium is situated next to the Westfield shopping centre in Stratford, with the site used by fans before and after matches.