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Irony - West Ham (1 Viewer)

  • Thread starter fernandopartridge
  • Start date Mar 22, 2013
Forums New posts

fernandopartridge

Well-Known Member
  • Mar 22, 2013
  • #1
On the day Coventry City are put into administration (not SISU). West Ham United sign a similar deal for a stadium built with public money. They’ll be paying £2m in rent per annum for a high quality 60k capacity stadium, with exemplary and tested infrastructure.

It doesn't make £1.2m per annum look so reasonable now imo.
 
Last edited: Mar 22, 2013

skyblueman

New Member
  • Mar 22, 2013
  • #2
fernandopartridge said:
On the day Coventry City are put into administration (not SISU). West Ham United sign a similar day for a stadium built with public money. They’ll be paying £2m in rent per annum for a high quality 60k capacity stadium, with exemplary and tested infrastructure.

It doesn't make £1.2m per annum look so reasonable now imo.
Click to expand...

They are in the PL where even if you field a team of 3 legged donkeys you will still walk away with £60 a year just from sky plus all the parachute payments if you go down - they will be alright as we would have been if we were there -
 

Mary_Mungo_Midge

Well-Known Member
  • Mar 22, 2013
  • #3
@But the deal was secured only after West Ham agreed to increase their own funding of the project by £5m, to £15m. They will move in from August 2016 and pay around £2m a year rent'

If SISU had agreed to 'increase their own funding' and buy the Higgs share in ACL, the rent would be, effectively, halved to £600K - and tthat's without contribution from the council as they have shown in recent months.

So, then your equation might look something like £2m for a 60K stadium, compared with £400K for a 32K stadium...
 

fernandopartridge

Well-Known Member
  • Mar 22, 2013
  • #4
skyblueman said:
They are in the PL where even if you field a team of 3 legged donkeys you will still walk away with £60 a year just from sky plus all the parachute payments if you go down - they will be alright as we would have been if we were there -
Click to expand...

Exactly my point - rent vs income - the Ricoh was never a good deal.
 
W

wingy

Well-Known Member
  • Mar 22, 2013
  • #5
fernandopartridge said:
On the day Coventry City are put into administration (not SISU). West Ham United sign a similar deal for a stadium built with public money. They’ll be paying £2m in rent per annum for a high quality 60k capacity stadium, with exemplary and tested infrastructure.

It doesn't make £1.2m per annum look so reasonable now imo.
Click to expand...

The taxpayer is spitting feathers.
 

Sky Blue Pete

Well-Known Member
  • Mar 22, 2013
  • #6
Not the issue the rent wasn't ok and a reasonable negotiation process would have seen this changed
 
T

theferret

Well-Known Member
  • Mar 22, 2013
  • #7
Considering the land on which Upton Park sits is said to be worth anything between £25-£50 million, then the up front funding required from West Ham is a snip.
 

stupot07

Well-Known Member
  • Mar 22, 2013
  • #8
Mary_Mungo_Midge said:
@But the deal was secured only after West Ham agreed to increase their own funding of the project by £5m, to £15m. They will move in from August 2016 and pay around £2m a year rent'

If SISU had agreed to 'increase their own funding' and buy the Higgs share in ACL, the rent would be, effectively, halved to £600K - and tthat's without contribution from the council as they have shown in recent months.

So, then your equation might look something like £2m for a 60K stadium, compared with £400K for a 32K stadium...
Click to expand...

You also need to include the premium for Property in london.

Average house price in London is £455k, in Coventry it is £140k.

So you could say £2m for 60k seater - £1m for 30k seater
Take into account the London premium x3 that of Coventry - £333k rent, then factor in drop in revenue from PL (£60m) to league one (~£7m)....rent should be about £40k.
 
Last edited: Mar 22, 2013

fernandopartridge

Well-Known Member
  • Mar 22, 2013
  • #9
Mary_Mungo_Midge said:
@But the deal was secured only after West Ham agreed to increase their own funding of the project by £5m, to £15m. They will move in from August 2016 and pay around £2m a year rent'

If SISU had agreed to 'increase their own funding' and buy the Higgs share in ACL, the rent would be, effectively, halved to £600K - and tthat's without contribution from the council as they have shown in recent months.

So, then your equation might look something like £2m for a 60K stadium, compared with £400K for a 32K stadium...
Click to expand...

SISU never had a windfall from the sale of a football ground to 'increase their own funding' with. It's a moot point as the stadium was built by the time SISU got here in any case.
 

lordsummerisle

Well-Known Member
  • Mar 22, 2013
  • #10
Mary_Mungo_Midge said:
@But the deal was secured only after West Ham agreed to increase their own funding of the project by £5m, to £15m. They will move in from August 2016 and pay around £2m a year rent'

If SISU had agreed to 'increase their own funding' and buy the Higgs share in ACL, the rent would be, effectively, halved to £600K - and tthat's without contribution from the council as they have shown in recent months.

So, then your equation might look something like £2m for a 60K stadium, compared with £400K for a 32K stadium...
Click to expand...

So West Ham are contributing £5million more to the Stadium than Coventry City Council did for the construction of the Arena?

Which they then received £21million in lease fees for immediately.

Think I know who may have got the better deal there.
 
C

clemy07

New Member
  • Mar 22, 2013
  • #11
skyblueman said:
They are in the PL where even if you field a team of 3 legged donkeys you will still walk away with £60 a year just from sky plus all the parachute payments if you go down - they will be alright as we would have been if we were there -
Click to expand...
£60 a year from sky? Thats terrible. I give sky more than that per month haha.
 

Changeyourface

New Member
  • Mar 22, 2013
  • #12
Can see this move crippling West Ham, a lot of West Ham fans seem to think so aswell. There's been a lot of protest to the move but as usual the fans opnions aren't worth shite. Also who in their right mind thinks that West ham will get anywhere close to 60k week in, week out?
 

fernandopartridge

Well-Known Member
  • Mar 22, 2013
  • #13
Changeyourface said:
Can see this move crippling West Ham, a lot of West Ham fans seem to think so aswell. There's been a lot of protest to the move but as usual the fans opnions aren't worth shite. Also who in their right mind thinks that West ham will get anywhere close to 60k week in, week out?
Click to expand...

Agreed, there will be a slight bounce in gates (more for people who want to see the Olympic Stadium we've all paid for) and then they'll go back to 30k average. They're not an established top flight team and haven't been for years.
 

BurbageSkyBlues

New Member
  • Mar 22, 2013
  • #14
Think they get close to capacity week on week out, circa 35K.

Also, the report I read said £150M to be spent on a refit, and capacity to be 54K
 

italiahorse

Well-Known Member
  • Mar 22, 2013
  • #15
Changeyourface said:
Can see this move crippling West Ham, a lot of West Ham fans seem to think so aswell. There's been a lot of protest to the move but as usual the fans opnions aren't worth shite. Also who in their right mind thinks that West ham will get anywhere close to 60k week in, week out?
Click to expand...

Some fans would moan if they got in for free. Read this forum .................
 
W

wingy

Well-Known Member
  • Mar 22, 2013
  • #16
BurbageSkyBlues said:
Think they get close to capacity week on week out, circa 35K.

Also, the report I read said £150M to be spent on a refit, and capacity to be 54K
Click to expand...

Thats a lot of bucks.
It probably did'nt cost that much to construct in the first place.
 

Mucca Mad Boys

Well-Known Member
  • Mar 22, 2013
  • #17
fernandopartridge said:
On the day Coventry City are put into administration (not SISU). West Ham United sign a similar deal for a stadium built with public money. They’ll be paying £2m in rent per annum for a high quality 60k capacity stadium, with exemplary and tested infrastructure.

It doesn't make £1.2m per annum look so reasonable now imo.
Click to expand...

They get 100% revenues, that off 2m, you're looking at 1.5m circa, we get nothing back... That puts it into perspective for me. Double attendance, newer, better ground. Also, they are a premiership side whereas we are in L1.
 

oldskyblue58

CCFC Finance Director
  • Mar 22, 2013
  • #18
Actually according to Boris Johnson on BBC Radio 5 this morning the council get a significant share of the income generated at the stadium to help defray the cost of rebuild ....... including naming rights, event income etc. So looks like they do not get 100% of the revenue.
 
T

tbh444

Member
  • Mar 22, 2013
  • #19
I wonder if West Ham would still be committed to paying the £2m if they somehow ended up in league 1 at some point in the next 20 years (not all that unlikely) - leaving upton park will seem like a total disaster... I reckon they're walking into exactly the same trap as us prompted by greedy owners, but as ever only a minority of fans will 'get it' and kick up a fuss.
 
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