West Ham rent...discuss... (10 Viewers)

[Nick]

The Hammers will not have to pay for a range of things including policing, stewarding, goalposts, corner flags, cleaners and turnstile operators. Heating and lighting costs will also be covered by the stadium managers.

So no matchday fees, no policing fees either.

 

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[skybluetony176]

The company who will agree naming rights - which will be worth far more than the rent.

How much are the naming rights worth then over what period of time? Didn't see a value in the article but it did say that the get nothing of the first £4M and then they only get half of the balance. It also doesn't look like they get 365day a year income either just match day, didn't read the 407 page document that covers the deal that is linked in the article but what's the deal on F & B?

 

[Grendel]

How much are the naming rights worth then over what period of time? Didn't see a value in the article but it did say that the get nothing of the first £4M and then they only get half of the balance. It also doesn't look like they get 365day a year income either just match day, didn't read the 407 page document that covers the deal that is linked in the article but what's the deal on F & B?

The naming rights will be massive. The Emirates deal was £150 million over 5 years.

 

[Nick]

How much are the naming rights worth then over what period of time? Didn't see a value in the article but it did say that the get nothing of the first £4M and then they only get half of the balance. It also doesn't look like they get 365day a year income either just match day, didn't read the 407 page document that covers the deal that is linked in the article but what's the deal on F & B?

For each Event Year:
(a) the Grantor may retain I 100% of the first £500.000 of all Catering Revenue;(b)
(c)the Grantor may retain 70% of any Catering Revenue received by it from Caterers in excessof the amount received in accordance with Clause 18.3(a) (Refreshments. Catering andAncillary Services) for the Events; andthe Grantor must pay to the Concessionaire an amount equal to 30% of any CateringRevenue received by the Grantor from Caterers in excess of the amount received by theGrantor in accordance with Clause 18.3(a) (Refreshments, Catering and Ancillary Services)for the Events,

So they keep first 500k, then give 30% after.

West Ham supply staff etc I think.

 

[Captain Dart]

Wonder if the directors get to pocket the proceeds of the sale of Upton Park?

http://www.theguardian.com/football/2014/jan/27/west-ham-debts-david-sullivan-david-gold

However they've lent the club quite a bit...

 

[chiefdave]

There's a lot of parallels with our original deal at the Ricoh - enough that if I was a Hammers fan I'd be worried. They even said at the start of the season they needed to stay up for the move to work.

The key for them will be naming rights, if that goes for enough then its basically rent free. They are also getting a lot provided outside of the 20something days a year use. All their offices, club shop and warehousing are moving to the new stadium.

They also don't have to pay for stewards, turnstile operators etc. They also get use of the stadiums ticket system and their match tickets will be sold through the stadium call centre.

 

[skybluetony176]

The naming rights will be massive. The Emirates deal was £150 million over 5 years.

Very nice but what is the naming rights for West Hams ground going to be?

 

[Nick]

So they keep first 500k, then give 30% after.

West Ham supply staff etc I think.

Ah no, I think I got grantor the wrong way round.

The stadium people keep the first 500k and give 30% revenue to West Ham afterwards

 

[skybluetony176]

It says the rent will be halved if they get relegated so they've given it a bit of thought...

Yeah I saw that. But if I was a West Ham fan I'd be looking at us and asking the question what if we go down, the parachute payments run out, the wage bill stays high and the crowds drop. Even halved at £1.25m that's still comparable to what we were paying in the championship.

 

[Macca]

Another proper football ground bites the dust

 

[Terry Gibson's perm]

Wonder if the directors get to pocket the proceeds of the sale of Upton Park?

http://www.theguardian.com/football/2014/jan/27/west-ham-debts-david-sullivan-david-gold

However they've lent the club quite a bit...

Any money they are putting is probably the money they got from the idiot Carson that bought the Blues off them and money they stripped out of the Blues (my father in law hates them all)

 

[Grendel]

Very nice but what is the naming rights for West Hams ground going to be?

Huge as they are in the premier league at a flagship Olympic stadium in the capital city. More than the emirates I would say. Also they get the sponsorship moneys during match days.

You seem to be indulging in some nonsense trolling and trying to imply the deal in some way justified the fee we paid.

I wouldn't bother

It's less than 2% of their total revenue. There is no break even attendance required here.

They have zero match day charges. For that stadium charges would be huge and so the saving is a very large percentage of the fee they are paying

They have no liabilities at all in terms of maintenance.

Wenger thinks it's the deal of the century. I wonder why.

The real significant thing is that the agreement includes a clause that the council get 30% of any sale in the next 5 years. This shows that they know the asset value of the club will escalate overnight.

Relegation is high unlikely but even then it goes down to rents we were paying but without match day costs and the small matter of a £100 million safety blanket.

 

[Nick]

The real significant thing is that the agreement includes a clause that the council get 30% of any sale in the next 5 years. This shows that they know the asset value of the club will escalate overnight.

I guess to stop the owners just getting the deal then selling up..

 

[skybluetony176]

Huge as they are in the premier league at a flagship Olympic stadium in the capital city. More than the emirates I would say. Also they get the sponsorship moneys during match days.

You seem to be indulging in some nonsense trolling and trying to imply the deal in some way justified the fee we paid.

I wouldn't bother

It's less than 2% of their total revenue. There is no break even attendance required here.

They have zero match day charges. For that stadium charges would be huge and so the saving is a very large percentage of the fee they are paying

They have no liabilities at all in terms of maintenance.

Wenger thinks it's the deal of the century. I wonder why.

The real significant thing is that the agreement includes a clause that the council get 30% of any sale in the next 5 years. This shows that they know the asset value of the club will escalate overnight.

Relegation is high unlikely but even then it goes down to rents we were paying but without match day costs and the small matter of a £100 million safety blanket.

I'm not trying to justify anything. You said that the rent was paid I'm asking for clarification that's all. By the way the emirates deal is more than stadium sponsorship, it includes team shirt, training shirt and training ground sponsorship amongst other things. How does that compare to say Wembley's latest sponsorship deal for instance? They're a gulf apart. What if the Olympic stadium sponsorship deal is nearer that amount than the emirate's?

 

[jimmyhillsfanclub]

Another proper football ground bites the dust

Aye....its a shame alright.

But It's only 1 min walk (or run ) from the Hammersmith & District Line.....that grand old Pub on the end of green street will be serving a slice of chorizo & a glass of prosecco for a tenner in a couple years time....lapped up by all the happy new dwellers of the 500K shoe-box bed-sits at "Boleyn Gardens" or whatever they call it....

 

[Ashdown]

Yak ! I like my chorizo in a pork and chorizo stew and Prosecco gives me heartburn !!

 

[Skyblueweeman]

It will be used for athletics in July each year, what a terrific olympic legacy.

Better than nothing...have you seen the Athens Olympic stadium nowadays?! I know Greece has gone tits up but the images of the Olympic venues from there is sad.

 

[Grendel]

I'm not trying to justify anything. You said that the rent was paid I'm asking for clarification that's all. By the way the emirates deal is more than stadium sponsorship, it includes team shirt, training shirt and training ground sponsorship amongst other things. How does that compare to say Wembley's latest sponsorship deal for instance? They're a gulf apart. What if the Olympic stadium sponsorship deal is nearer that amount than the emirate's?

They are a gulf apart because they are not the premier league. You may not be aware but advertising and sponsorship in the premier league is now almost on a par with the NFL due to growing interest in Asia and the Middle East.

The arsenal deal is actually pittance compared to the Ethiad which is £400 million.

It's not just that either. Digital advertising will increase hugely - currently West Ham charge £1,000 per minute for this.

Perimeter advertising will expand hugely. Premier clubs on average receive £1 -£10 million a year for such advertising.

The sheer scale of the stadium will mean this revenue will at least double, likely treble in an instant.

It's the premier league status that ensures this will make West Ham very rich indeed.

 

[chiefdave]

How does that compare to say Wembley's latest sponsorship deal for instance?

Wembley is £25m for 6 years but its not naming rights. Its still Wembley Stadium but now it has connected by EE added to the end.

 

[SkyBlue_Bear83]

There's a lot of parallels with our original deal at the Ricoh - enough that if I was a Hammers fan I'd be worried. They even said at the start of the season they needed to stay up for the move to work.

The key for them will be naming rights, if that goes for enough then its basically rent free. They are also getting a lot provided outside of the 20something days a year use. All their offices, club shop and warehousing are moving to the new stadium.

They also don't have to pay for stewards, turnstile operators etc. They also get use of the stadiums ticket system and their match tickets will be sold through the stadium call centre.

Barry Hearn ex Leyton Orient owner was talking about it today. They pay virtually no costs like police, staffing stewarding, pitch maintenence, floodlights, heating bills, electricity bills etc. they don't even have to pay for there own goalposts or corner flags. He reckons by all these costs being subsidised for them will save West Ham £2.5 million or even more over the season, i.e rent free.

West Ham will get a 50-50 split of anything above £4 million with regards to naming rights. With regards to catering income they will get 30% of anything above 500k.

To convert the Olympic satdium into a football stadium cost £270 million of which West Ham paid £15 million towards

 

[SkyBlue_Bear83]

So they keep first 500k, then give 30% after.

West Ham supply staff etc I think.

I don't think West Ham supply staff.

 

[SkyBlue_Bear83]

Yeah I saw that. But if I was a West Ham fan I'd be looking at us and asking the question what if we go down, the parachute payments run out, the wage bill stays high and the crowds drop. Even halved at £1.25m that's still comparable to what we were paying in the championship.

Not shitting on our fans here but the difference here really is that West Ham are a much bigger club than us, West Ham would still be pulling in 30-35k every week and would be able to attract and afford the very top quality for that level which would eventually see them promoted out the championship.

If they can get close to selling it out in the premier league they have no chance of being relegated any time soon anyway

 

[Ashdown]

Barry Hearn ex Leyton Orient owner was talking about it today. They pay virtually no costs like police, staffing stewarding, pitch maintenence, floodlights, heating bills, electricity bills etc. they don't even have to pay for there own goalposts or corner flags. He reckons by all these costs being subsidised for them will save West Ham £2.5 million or even more over the season, i.e rent free.

West Ham will get a 50-50 split of anything above £4 million with regards to naming rights. With regards to catering income they will get 30% of anything above 500k.

To convert the Olympic satdium into a football stadium cost £270 million of which West Ham paid £15 million towards

State aid ??, I can feel another court case coming on ??

 

[Sky_Blue_Daz]

Cracking deal in my opinion
Who ever negotiated it should be in charge of the next World Cup bid

 

[wingy]

Cracking deal in my opinion
Who ever negotiated it should be in charge of the next World Cup bid

Boris :facepalm:.....

 

[Terry Gibson's perm]

Boris :facepalm:.....

:jerkit: Is the correct smilie for Boris

 

[Terry Gibson's perm]

:jerkit: Is the correct smilie for Boris

If ever a man could make me want to vote to stay in the eu Boris is that man.

 

[chiefdave]

West Ham doing their best to copy us. How long before there's a JR. Just need them to get relegated this year and while house of cards is likely to collapse.

London Stadium report finds that @SpursOfficial proposal to knock stadium down & build new one was actually quite sensible and same cost, £323m, as botched conversion we have now.
Amazing: Boris Johnson scrapped original £25k post-Olympics solution because it would need public ££; then spent vast public money taking ownership & converting it for West Ham.
Report finds Boris Johnson gave stadium to West Ham, £323m conversion cost, and took all the expense & risk off PL club, onto public sector.
West Ham were in pole position; Boris Johnson should have used "no deal" as a negotiating stance but didn't. On Brexit, "no deal" is a disaster for the UK but he's using it. (That's our country, right there ...)
Deal done by Boris Johnson: "All risks & ongoing costs (capital & operating) were to be borne by the public sector." Unbelievable, really.
"Fact West Ham would not bear stadium operating costs should have led to substantially increased rent but no such increase was obtained."
Boris Johnson deal cost £323m, West Ham rent doesn't cover operating costs, £10-£20m losses per year. (Moved on to lead us to Brexit...)
1st West Ham bid proposed keeping the track. 2nd bid, no competition, asked for retractable seats & roof expanded; Boris Johnson agreed, cost £323m.
Boris Johnson's £323m post-Olympics conversion for West Ham: Public money spent on it: £291.5m. West Ham money spent: £15m.
Spurs bid to demolish & build new stadium cost £323m, £35m public money. Boris Johnson conversion for West Ham cost £323m, £291.5m public money.

 

[fernandopartridge]

They are a gulf apart because they are not the premier league. You may not be aware but advertising and sponsorship in the premier league is now almost on a par with the NFL due to growing interest in Asia and the Middle East.

The arsenal deal is actually pittance compared to the Ethiad which is £400 million.

It's not just that either. Digital advertising will increase hugely - currently West Ham charge £1,000 per minute for this.

Perimeter advertising will expand hugely. Premier clubs on average receive £1 -£10 million a year for such advertising.

The sheer scale of the stadium will mean this revenue will at least double, likely treble in an instant.

It's the premier league status that ensures this will make West Ham very rich indeed.

The Etihad deal is a anomaly. It's just a wheeze to circumvent the FFP rules.

 

[clint van damme]

Wasn't "affordable" or social housing though was it......just ask all those who were moved to Stoke-on-Trent as part of the continuing social cleansing of London.....

still...fuck 'em....I give London another 10 years maximum before it all comes on top big time with a total breakdown of social & public services, major social unrest & riots that will make Toxteth & Brixton '81 look like a kiddies party.....

while my thoughts on this aren't quite as apocalyptic I've been saying the same for a while.
Not many people who do any sort of low skilled low paid job can afford to live near their place of work if it's central London. How far out do they get pushed before it's not worth them travelling in and then what happens?
Do you tempt them with a massive wage rise or do the councils finally realise they need to start to build affordable housing centrally when it's too late?

New York the same. Workers used to travel in to Manhattan fro m the other 4 Boroughs. Now they're getting gentrified the workers are having to move to New Jersey. How far out do you go before it's not worth travelling? Then who cleans the toilets and serves the coffee?

 

[skybluetony176]

West Ham doing their best to copy us. How long before there's a JR. Just need them to get relegated this year and while house of cards is likely to collapse.

Worrying for West Ham. Boris will no doubt breeze through it all though without a scratch.

 

[skybluetony176]

Doesn't look like the search for a naming rights sponsor has gone too well either

Search for naming-rights partner for West Ham's London Stadium continues as Vodafone pulls plug on £20m deal

£20M over six years and the deal fell through.

 

[fernandopartridge]

while my thoughts on this aren't quite as apocalyptic I've been saying the same for a while.
Not many people who do any sort of low skilled low paid job can afford to live near their place of work if it's central London. How far out do they get pushed before it's not worth them travelling in and then what happens?
Do you tempt them with a massive wage rise or do the councils finally realise they need to start to build affordable housing centrally when it's too late?

New York the same. Workers used to travel in to Manhattan fro m the other 4 Boroughs. Now they're getting gentrified the workers are having to move to New Jersey. How far out do you go before it's not worth travelling? Then who cleans the toilets and serves the coffee?

It's already happening, the London NHS Trusts have chronic recruitment problems, particularly with nurses but with doctors as well. Junior doctors working in central London are hardly well paid, considering the hours etc. London is reliant on a continuing line of cheap labour, be it from the EU or the commonwealth, the sort of people who are happy to leave in converted garages and sheds. This is the price of corporate profit at all costs.

 

[Captain Dart]

State aid.

 

[Terry Gibson's perm]

It's already happening, the London NHS Trusts have chronic recruitment problems, particularly with nurses but with doctors as well. Junior doctors working in central London are hardly well paid, considering the hours etc. London is reliant on a continuing line of cheap labour, be it from the EU or the commonwealth, the sort of people who are happy to leave in converted garages and sheds. This is the price of corporate profit at all costs.

Can't understand the fascination with living in London unless you are mega rich a doctor could have a really good standard of living elsewhere at a fraction of the cost doing the same job