The continuing drain of West Ham's bargain of the century

West Ham United contributed an extra payment of just £185k for using the Olympic Stadium last season, despite enjoying a European cup run which earned them more than £12m.

This season they will not pay any extra for playing in a European competition - even if they make millions in prize money.

Signed off by then London mayor Boris Johnson in 2013, the arrangement means home matches are effectively subsidised by taxpayers, with the stadium losing around £10m a year.

It's a loophole that emerged because the club's original deal to rent the stadium did not cover this particular trophy - meaning they are not obliged to offer even a token payment toward running costs.

Each time West Ham plays at the London stadium it costs more than £100k - the expenses include running the venue on matchdays, and removing then re-installing the moveable seating to allow for other events. The club's rent - last season it was £2.9m - does not cover that outlay.

Even with the extra cash for the stadium courtesy of performance-related clauses in the contract with West Ham - £85k for finishing sixth in the 2020/21 Premier League, and £100k for qualifying for the Europa League - taxpayers have to make up the shortfall.

But the bonuses and prize money from the Europa League run exceeded the running costs by far. The club generated more than enough to cover the operation of the stadium. On top of the money earned directly from the competition, tens of millions of pounds have to be factored in from television rights.

This season, the disparity is even greater. West Ham finished seventh in the Premier League last year, so missed out on a place in the Europa League this season.

So no performance-related cash to hand over there.

But they did qualify instead for the Europa Conference League - a competition which also promises lucrative rewards.

They are due to get bonuses of several hundred thousand pounds for playing in the preliminary and group stages of the cup.

They are drawn against either Denmark's Viborg FF or B36 Torshavn of the Faroe Islands in the first play-off round.

If they progress, getting to the semi final would earn them £1.7m. There's £4.25m prize money for the eventual winners and £2.5m for the runners-up.

The Europa Conference League started last year. Because it's new, it was not mentioned in or covered by the original stadium contract signed in 2013, so West Ham have no obligation to pay anything related to it.

Critics have said, a decade after the 2012 Games, questions have once again been raised about Olympic legacy.

The controversial tenancy agreement given to West Ham - 99 years at a knockdown price - was described by one senior official as the "bargain of the century".

Andrew Boff, Conservative member of the London Assembly, said the situation stemmed from the decision to ensure the stadium was capable of hosting athletics, and West Ham "holding the taxpayer over a barrel".

"The whole Olympic Park project is held back by the obscene amounts of money that we have had to forego because we were committed to trying to get a use for a stadium that was inappropriate," he said.

Unmesh Desai, Labour's assembly member for the area, said while he was "pleased to see West Ham make London Stadium their home, and to have a successful future there", the deal for the ground "continues to have consequences".

He said: "The 'deal of the century' contract, with a 99-year lease, has seen West Ham pay minimal amounts towards the upkeep of the stadium whilst raking in millions.

"This situation represents not only a poor deal for Londoners costing them almost £30 million last year, but a poor deal for the fans, who have waited far too long to see improvements to their stadium and haven't seen any reduction in ticket prices

Before West Ham were defeated in the semi-final of the Europa League by the eventual winners German club Eintracht Frankfurt, their cup run netted them:

£3.3m for getting to the group stage

£2.5m for performance in the group games

Nearly £1m for winning their group

£2.75m for getting through the next two knockout stages

£2.5million for playing in the semi-final

Criticism of the decision to grant West Ham a 99-year "concession" during Boris Johnson's mayoralty was made in a report commissioned by his Labour successor Sadiq Khan.

City Hall says there's nothing it can do to force a renegotiation of the club's rent and other financial commitments.

The London Legacy Development Corporation (LLDC) - the agency which runs the stadium on behalf of London's mayor - has admitted there's no clause in the agreement with West Ham requiring them to pay up for playing in this new competition.

It was further proof of a poor original deal, it said.

As landlord, the LLDC says it has reduced the bill to the taxpayer by cutting the cost of moving the seating and it has negotiated extra money from West Ham for use of the club's claret and blue colours in parts of the stadium.

LLDC's chairman, Sir Peter Hendy, said the current situation is better than the stadium standing empty - as has been the fate of many other Olympic arenas around the world.

West Ham, who this weekend play host to champions Manchester City in their opening game of the season, said they had no comment to make.

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