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The Aftermath - of the London2012 stadium

After putting up heroic resistance in the public interest the London Legacy Development Corporation (LLDC) finally gave in and published the details of the contract with West Ham for the London Olympics stadium after being ordered to do so by the Information Tribunal. However, a search of the LLDC website for the contract produces 'no result' and does not provide any trace of the document and nor is it mentioned under 'News' or 'Press Releases'. The full agreement can be found here. Interestingly the details of the contract had not been pursued by any public authority or by GLA Assembly Members, by the European Union or even by rival football clubs like Tottenham Hotspur or Leyton Orient but by Supporters groups from fourteen different clubs. Apparently Boris Johnson had said he would be happy for the contract to be published. If so it is hard to understand why he didn't push for this to happen, as the LLDC is very much his baby, rather than allow it to spend over £21,000 fighting the case.

The BBC outlined the details. The final cost of the stadium is £701million with the cost of conversion £272million, up from the original estimate of £160million. West Ham's contribution to this refit was £15million. It will pay £2.5million rent per year with a scale of charges depending on the club's footballing success or failure. However, it will not pay for a variety of services like security, undersoil heating, floodlighting, cleaning which are worth up to another £2.5million.

The BBC claims the stadium will be a multi-use venue. It is hard to see the point of this statement. It is a 'multi-use' venue because of the enormous amount of money spent on converting it to accommodate athletics and football! However, if a two month window for, in all probability, one major athletics event a year qualifies it as a multi-use venue then this is a strange understanding of multi-use. The fact that music events will also be hosted is hardly unusual for stadiums of this type, many football clubs host such events without this kind of expenditure.

However, in this article the BBC fails to mention the £40million loaned by Newham to West Ham as part of the deal although back in 2011 it reported on concerns in Newham and among some Newham councillors that the deal had little to offer the community and highlighted the control exercised by Newham's Mayor, Robin Wales, who is able to use political patronage to silence opposition in a borough without any non-Labour councillors. The BBC reported:

One serving councillor, speaking on condition of anonymity, said: "A significant number of councillors have reservations.
"There are massive doubts over supposed community benefits."
The councillor continued: "Why are we arranging a loan for a private company? West Ham should go to a bank like everybody else.
Councillors are afraid to speak out. This rings alarm bells.
Anita Shields, Independent auditor
"The financial football model is hardly blessed by success."
But not one serving politician will go on the record.
The councillor said: "The problem is the mayoral system.
"People are frightened to go against the mayor. They are frightened of a lack of patronage.
"He's had almost the same executive since 2000 - on £40,000 each. People want a bit of the action."


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