West Ham to lose £4m chunk of any stadium naming rights deal to LLDC
West Ham United will have to hand over £4m from any naming rights deal for their new stadium as part of the club’s deal with the London Legacy Development Corporation (LLDC).
Full details of the Hammers' contract with the London Legacy Development Corporation (LLDC) and Newham borough were revealed yesterday.
As part of an agreement, which will see West Ham pay £2.5m in annual rent, the LLDC will receive a £4m chunk of any future stadium naming rights deal. The LLDC has led the search for a naming rights partner however no names have been confirmed.
Stadium naming rights have become increasingly common in football, particularly in the Premier League where clubs such as Arsenal and Manchester City have benefited from huge financial sums for joint stadium and shirt sponsorship agreements.
The Hammers will pay £2.5m in annual rent for the new 60,000 capacity Olympic stadium after they bid farewell to Upton Park at the end of the current season. The agreement with the LLDC represents a good deal for club considering the sum is only marginally above the average salary for a Premier League player.
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The LLDC attempted to prevent the 207-page contract from being published on the grounds of commercial sensitivity and concerns that publishing the details could cost it millions of pounds in lost revenue.
A spokesperson for the LLDC said: "The stadium needs to be a profitable and successful commercial operation; otherwise it will rely on public subsidy."
The deal was published after a lengthy legal battle which stemmed from a freedom of information request put forth by an alliance of 14 supporters' groups.