West Ham face fresh questions over Olympic Stadium move
West Ham United and Newham Council are facing fresh questions about the viability of the planned move to the Olympic Stadium after Sunday’s relegation from the Premier League.
Ideal home: West Ham still believe their plan to move to the Olympic Stadium is viable Photo: GETTY IMAGES
By Jeremy Wilson 10:03PM BST 16 May 2011
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Tottenham Hotspur have already requested a judicial review into the decision to award the stadium to West Ham amid particular concern at Newham Council’s pledge to provide a loan of up to £40 million to the new stadium company.
Although West Ham are confident that their business plan is realistic regardless of whether they are in the Premier League or the Championship, Tottenham are challenging whether it is appropriate for Newham Council to be lending money in support of the project.
They are well aware of reports that Newham taxpayers could theoretically become liable for the loan if West Ham default on repayments. Questions have also been raised over whether Newham councillors were given ample time to understand fully all the financial consequences before making their decision.
Newham have declined to comment on Tottenham’s judicial review, but have stressed that “there would be no impact on our day-to-day spending” and that they are “confident there is no risk to the local council taxpayer”.
Tony Gale, the former West Ham defender, has predicted that the Olympic Stadium could be like “a ghost town” but the club’s co-owner, David Gold, yesterday moved to allay any fears. Gold said: “There is absolutely no financial issue at all,” and added that West Ham had budgeted for relegation.
Karren Brady, the vice-chairman, said: “We are totally committed to the move to the Olympic Stadium; the business case stacks up. We have always said that the move is not solely dependent on the club’s league status.
“Whatever division we are in, David Sullivan and David Gold have guaranteed that the club will meet all its financial commitments. West Ham United is a well-run business that has planned for every contingency.”
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