January 29 – West Ham United have not had the happiest of times since moving from their much beloved Upton Park to the London Stadium, however, the club is potentially now £3.6 million better off after winning a court case against The London Legacy Development Corporation (LLDC), which owns London Stadium.
In 2021, Czech billionaire Daniel Kretinsky’s purchased a 27% stake in the club in a deal reportedly worth between £180-200 million and the payment is linked to that contract.
The Hammers have a lease agreement with E20 Stadium LLP, which is a subsidiary of the LLDC which operates the venue. The terms of the lease state that the club’s owners must pay E20 a share of any profit made by selling shares in the club within 10 years of their occupancy. The 10-year clause expired in 2023.
The move of West Ham to the 2012 Olympic Stadium (later renamed the London Stadium) has always been controversial with West Ham for all intents and purposes being gifted the stadium on peppercorn rent of £4.7 million a year. West Ham, who have a 100-year lease, pay nothing for the maintenance of the stadium and keep all ticket sales. Hence any buyer of the club is also getting one of England’s biggest and piece stadiums.
The club and E20 have argued whether the shares Kretinsky owns entitles E20 to any cash paid for them. E20 were looking for a payment of more than £6 million while West Ham had only agreed to pay £2.5 million.
West Ham eventually ended up paying a further £3.6 million but decided to take E20 to London’s commercial courts. The High Court has now ruled that an expert determination ordering the club to pay the money contained two “manifest errors”, meaning that E20 must repay the £3.6 million sum.
In the ruling, Paul Mitchell KC, the deputy High Court judge, said: “In my judgment WHH (WH Holding, West Ham’s parent company) has proved that the expert determination in this case contains two manifest errors. Accordingly, I shall grant the declaration sought by WHH that the determination is not final and binding on WHH.”
An LLDC spokesman added: “West Ham appealed the determination, as it is entitled to do, and the court has found in its favour. We have reviewed the judgment and are currently assessing our options – including the potential for an appeal.”
Contact the writer of this story, Nick Webster, at moc.l1738223426labto1738223426ofdlr1738223426owedi1738223426sni@o1738223426fni1738223426