West Ham United’s rental agreement at the London Stadium has been described as “brilliant.”
That is according to financial expert Kieran Maguire, who was speaking to Football Insider about the latest news regarding the Irons.
Having moved into the stadium in 2016, the Hammers struck a deal which meant that the club would pay £2.5m a season in rent to play in the London Stadium.
However, following information published by Six Foot Two, it is now suggested that the club pay £3.5m a season in order for David Moyes’ side to continue playing in the stadium.
And Maguire believes that despite the £1m hike in rental costs, this is still a brilliant deal for West Ham.
An increase of £1m still gives West Ham a brilliant deal,” Maguire told Football Insider.
“It is a contributory factor as to why prospective owners would be prepared to pay so much for the club.
“If you crunch the numbers, an extra £1m spread over a minimum of three Europa League matches works out as a fiver per fan.
“On top of that, if they get to the more advanced stages of those competitions, you could see the cost spread over six matches and it would work out as a couple of quid per fan, per match.
“You’re selling tickets for £20 to £30 in the early rounds, which will ratchet up.
“On top of that, there are merchandise sales and other matchday revenues generated by the club that will very quickly accelerate ahead of any minor costs incurred in terms of hosting those games and in terms of rent.”
TIF Thoughts on Maguire’s comments
We believe that the bonus of playing in such a big stadium and the financial bonuses that come with it, make West Ham’s rental deal seem like a bargain.
And the club have shown as much, with a new lease of financial muscle in the transfer market meaning that the Irons were able to spend over £160m in the summer transfer window.
Therefore, we think that West Ham fans will be delighted that the club are continuing to pay rent on the stadium, with the club reaching new heights due to their new-found financial muscle.