Skip to main content

West Ham stadium dispute may end up in Supreme Court

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

Popular posts from this blog

It's no deal say Spurs insiders over Taiwanese takeover

Senior figures at Tottenham Hotspur insisted on Friday that they had not been informed of any deal to sell Daniel Levy’s stake in the club. A business group, Eight Sports Capital — which is said to include a billionaire Taiwanese financier — claimed that it had an agreement in place to buy a 24.99 per cent stake in ENIC, the club’s majority owners, from Levy, who owns 29.88 per cent. The Times has been told Ng Wing Fai and Brooklyn Earick form part of the group, having both been linked previously to potential takeovers of the Premier League club. The Taiwanese businessman, Richard Tsai, is also said to be part of the consortium. He is reportedly worth £7 billion.  Last year Earick, the former DJ and tech entrepreneur, was part of an attempted £4.5 billion takeover, which was “unequivocally rejected” by Spurs.  An ENIC spokesperson said: “We can confirm that neither ENIC nor THFC are aware of any sale by Daniel Levy’s Family Trust of its minority stake in ENIC, THFC’...

Reports about Charlton sale exaggerated

Reports have appeared in The Guardian and elsewhere that Charlton has been put up for sale. Richard Cawley is an authoritative local journalist who runs a South London Sport substack site.  He reached out to the club yesterday evening to ask for comment on The Guardian’s article. Early indications from the club have been that nothing has changed since the story about them seeking investment, except that it is now a different company doing it. Charlton have since managed to consolidate their place in the Championship, avoiding an instant return to League One, with their women’s side promoted to the WSL, returning to the top flight for the first time since 2007, although staying there is likely to be costly. It would be counter-intuitive for owners Global Football Partners not to progress the club when looking for investment, that the focus remains on driving it forward, that their spend this summer is in line with long-term planning and will see an increase in wages spent on players...

Hull City's 'strange' loan

When football finance guru Kieran Maguire seems flashing lights in a club's loan deal, I become concerned.  He is the leading football finance expert in the UK. Hull City have borrowed £55m against their stadium and training ground yet they should get £30m from the Premier League before long.  What is going on? https://www.bbc.co.uk/sport/football/articles/cpwel48y51do