A £10m guarantee has been made available to ensure suppliers to the loss-making London Stadium get paid. Under the deal, approved by the Mayor of London, the London Legacy Development Corporation (LLDC) will underwrite planned upgrades. The BBC reports that City Hall said the deal was needed to “provide assurance” to suppliers of services such as stewarding and cleaning “that they will be paid”. In December 2017, Sadiq Khan announced he had taken control of the stadium. A spokesman for the mayor said:
This technical agreement allows the LLDC to provide assurance to stadium suppliers that they will be paid from the funding already put in place by the Mayor to cover the stadium’s losses. The Mayor has taken over control of the London Stadium to put it on a more secure financial footing. He is working to ensure its long-term future as a world-class multi-purpose venue and that it continues providing community benefits.
No extra funding has been made available by the deal. An independent review found that E20, the public sector company set up to run the London Stadium, is projected to make a loss of £20m this year and a total loss of £140m over its first 10 years.
West Ham were awarded tenancy of the former Olympic Stadium in 2013, however, under the agreement the club does not have to pay for certain running costs. These instead are paid for by the taxpayer and include policing, stewarding, goalposts, corner flags, cleaners and turnstile operators.
An independent review found converting the stadium from an athletics venue to a football ground cost £323m– the original estimate was £190m.