One group of beneficiaries from modern big business football are the legal profession.
West Ham United are considering launching an appeal at the
Supreme Court after being ordered to pay £3.6million ($4.86m) to their
landlords at the London Stadium.
As part of West Ham’s rental agreement with the London
Stadium, which has been their home ground since leaving Upton Park in 2016, an
‘anti-embarrassment clause’ required the club to pay their landlords a share of
any profit they received from selling shares.
The clause has been active after Czech billionaire Daniel
Kretinsky bought a 27 per cent stake in 2021, which made him the second-largest
shareholder at West Ham, after David Sullivan, the majority shareholder who
owns 38.8 per cent.
In 2021, West Ham’s landlords informed the club that share
transactions within their company meant the London Stadium was owed a
significant payment. The club paid £2.6m but challenged the additional £3.6m.
The matter was referred to expert determination, an alternative dispute
resolution, in which London Stadium was successful.
West Ham disagreed and took the case to the High Court. The
court decided the determination should be overturned. The London Stadium
appealed that decision and the Court of Appeal has now found in their favour.
Comments
Post a Comment