The Political Economy of Football V2

Price of Football have produced a condensed commentary on the Mayor of London's report on the Olympic Stadium. West Ham United cannot be blamed for playing a strong hand as the only feasible tenant, even if it was at a considerable cost to the public purse. The blame must rest with mismanagement by politicians and the deal is reminiscent of poor PFI deals concluded over the last ten to fifteen years: Flares and slippers Fair enough, but dealing with legacy stadiums after an event like the Olympics is always a major challenge. Think of all those stadiums left empty and desolate in Greece after they staged the Olympic Games. See some pictures here: Abandoned venues

Mayor of London Sadiq Khan has taken charge of the Olympic Stadium after a report found that it was losing more than £20m a year. Sadiq Khan criticised his predecessor, Boris Johnson, claiming that he had 'panicked' and allowed the taxpayer to foot the £300m bill to convert the venue into a football stadium for West Ham United. The conversion has cost £113m more than estimated and the stadium is forecast to lose £24m in 2017-18. Under the deal struck by Mr Johnson when he was mayor West Ham pays £2.5m a year as part of a 99-year lease, which is reduced to £1.25m if they are relegated from the Premier League. The costs of converting the stadium were largely borne by the taxpayer with the club contributing £15m. Stewarding and policing costs, along with such items as cleaners, turnstile operators, goalposts and corner flags are picked up by the publicly owned operator E20. The review commissioned by the mayor found that since that deal was signed, policing and stewarding co...