City Hall will lose out on £2.5 million a year if West Ham United are relegated to the Championship, Sir Sadiq Khan has warned. The East London side are currently fighting for Premier League survival with just two games left in the season, sitting two points behind Tottenham Hotspur in the relegation battle.
The Lease Agreement
West Ham have a lease agreement with City Hall whereby the rent for the London Stadium is slashed in half if they are relegated to the Championship. Former Mayor of London Boris Johnson signed the deal shortly after the 2012 Olympics, when West Ham had only recently returned to the Premier League. Taxpayers already part-subsidise the running of the London Stadium, as the £4.4 million rental fee does not cover stewarding costs.
Financial Implications of Relegation
The larger size of the Championship means West Ham would have 23 home games next season if they are relegated, compared to 19 in the Premier League, leading to more significant stewarding costs. There would also likely be a drop in commercial revenue generated by the venue should West Ham drop into the second tier. Sir Sadiq Khan told the Evening Standard that Londoners who do not support Tottenham Hotspur should want West Ham to avoid relegation this season.
"Boris Johnson did the worst deal imaginable, where as far as West Ham are concerned it’s the deal of the century," he said. "He basically gave them rent free this amazing stadium for 100 years. If West Ham are relegated we could lose up to £2.5 million a year. The taxpayer will lose out if West Ham go down."
Remaining Fixtures
The Hammers have two games left against Newcastle United and Leeds United to close the relegation gap, while Tottenham Hotspur have to face London rivals Chelsea along with Everton. The outcome of these matches will determine whether West Ham remain in the top flight or face the financial consequences of relegation.
