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West Ham United must pay £70m bank debt before Olympic Stadium move West Ham United must pay £70m bank debt before Olympic Stadium move
(2 months later)
West Ham United will have to pay off all of their bank debt before their move to the Olympic Stadium, according to the club's vice-chairman, Karren Brady.West Ham United will have to pay off all of their bank debt before their move to the Olympic Stadium, according to the club's vice-chairman, Karren Brady.
West Ham have debts of £70m, with half of that bank debt secured on Upton Park and which has to be cleared when the ground is sold ahead of the move to the Olympic Stadium in 2016.West Ham have debts of £70m, with half of that bank debt secured on Upton Park and which has to be cleared when the ground is sold ahead of the move to the Olympic Stadium in 2016.
Brady, giving evidence to the House of Lords committee on Olympic and Paralympic legacy on Wednesday, also insisted the club were not getting the stadium on the cheap and the deal was good value to the taxpayer.Brady, giving evidence to the House of Lords committee on Olympic and Paralympic legacy on Wednesday, also insisted the club were not getting the stadium on the cheap and the deal was good value to the taxpayer.
The Premier League club did have a buyer in place for Upton Park but that fell through because of delays to the deal to become Olympic Stadium tenants. Brady also stated that the sluggish property market means she expects income projections from the sale to be down 50% on 2010.The Premier League club did have a buyer in place for Upton Park but that fell through because of delays to the deal to become Olympic Stadium tenants. Brady also stated that the sluggish property market means she expects income projections from the sale to be down 50% on 2010.
Brady added that she did not expect the sale would cover much more than the lump sum the club will have to pay to the London Legacy Development Corporation (LLDC) to move to the Olympic venue.Brady added that she did not expect the sale would cover much more than the lump sum the club will have to pay to the London Legacy Development Corporation (LLDC) to move to the Olympic venue.
She said: "We did have a tentative deal [for Upton Park] but that fell away. We hope the money generated from the sale of Upton Park will be enough to fulfil our commitment and to help pay off some of our bank debt.She said: "We did have a tentative deal [for Upton Park] but that fell away. We hope the money generated from the sale of Upton Park will be enough to fulfil our commitment and to help pay off some of our bank debt.
"When we bought the club and took on more than £100m of debt, that was guaranteed on the ground. We have to pay off all our bank debt to move, we can't take the debt with us. If there is any excess [from the sale of Upton Park] it will meet some of that debt but I don't expect there will be.""When we bought the club and took on more than £100m of debt, that was guaranteed on the ground. We have to pay off all our bank debt to move, we can't take the debt with us. If there is any excess [from the sale of Upton Park] it will meet some of that debt but I don't expect there will be."
Brady was asked to respond to a claim by the former sports minister Richard Caborn that West Ham were getting the £600m stadium for only £15m, plus £2m-a-year rent, with the taxpayer picking up the tab. Brady defended the deal, however, and said: "The alternative scenario does not bear thinking about. West Ham is not getting a free stadium. The stadium was built for the Olympics and what are we going to do with it? Across the world, stadiums that are not used die. Without anchor tenants the cost would be huge to the taxpayer."Brady was asked to respond to a claim by the former sports minister Richard Caborn that West Ham were getting the £600m stadium for only £15m, plus £2m-a-year rent, with the taxpayer picking up the tab. Brady defended the deal, however, and said: "The alternative scenario does not bear thinking about. West Ham is not getting a free stadium. The stadium was built for the Olympics and what are we going to do with it? Across the world, stadiums that are not used die. Without anchor tenants the cost would be huge to the taxpayer."
She added that West Ham would generate "many hundreds of millions of pounds" over the 100-year lease.She added that West Ham would generate "many hundreds of millions of pounds" over the 100-year lease.
The committee also heard from Leyton Orient's chairman, Barry Hearn, who insisted West Ham's move was "not a done deal" because of his continuing judicial review and legal action against the Premier League.The committee also heard from Leyton Orient's chairman, Barry Hearn, who insisted West Ham's move was "not a done deal" because of his continuing judicial review and legal action against the Premier League.
Hearn wants his club to be able to groundshare with West Ham and use only the lower tier for Orient's matches. He also described the LLDC's deal with West Ham as "state sponsorship beyond my wildest dreams".Hearn wants his club to be able to groundshare with West Ham and use only the lower tier for Orient's matches. He also described the LLDC's deal with West Ham as "state sponsorship beyond my wildest dreams".
Hearn said: "This is not a done deal. West Ham have an agreement but I have a judicial review outstanding and litigation with the Premier League that [means] West Ham even moving would be a breach of Premier League rules.Hearn said: "This is not a done deal. West Ham have an agreement but I have a judicial review outstanding and litigation with the Premier League that [means] West Ham even moving would be a breach of Premier League rules.
"We have ended up in situation where we have gifted £500m of taxpayers' money to a Premier League club that has a turnover of more than £100m. It's a wonderful gift but if I was an Arsenal fan I would wonder why we bothered paying to build a new stadium."We have ended up in situation where we have gifted £500m of taxpayers' money to a Premier League club that has a turnover of more than £100m. It's a wonderful gift but if I was an Arsenal fan I would wonder why we bothered paying to build a new stadium.
"This is state sponsorship beyond my wildest dreams. In effect, it's rent free as they have the ability to develop Upton Park.""This is state sponsorship beyond my wildest dreams. In effect, it's rent free as they have the ability to develop Upton Park."
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