Olympic Stadium ‘to remain empty for years’ as deal collapses

THE Olympic Stadium deal with West Ham United and Newham Council has collapsed, sports minister Hugh Robertson confirmed today.

Legal challenges by Tottenham Hotspur and Leyton Orient, plus an anonymous complaint to the European Commission, have led to fears that court action could drag on for years while the stadium remains empty.

The stadium will now remain in public ownership and be leased out to an anchor tenant following a new tender process by the Olympic Park Legacy Company (OPLC).

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West Ham vice-chairman Karren Brady confirmed the club will bid again to become a tenant at the stadium.

Mr Robertson said: “The key point is the action we have taken today is about removing the uncertainty. The process had become bogged down in legal paralysis.

“Particularly relevant has been the anonymous complaint to the EC over ‘state aid’ and the OPLC received a letter from Newham Council yesterday saying because of the uncertainty they no longer wanted to proceed. That was the straw that broke the camel’s back and we thought it better to stop it dead in its tracks now.

“We know there is huge interest in the stadium out there from private operators and football clubs and, crucially, we remove any uncertainty.”

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Some £35 million already earmarked under the Olympic Budget will be used to transform the stadium after the Games. Prospective tenants will then be asked to bid for the stadium, with the running track remaining in place.

Mr Robertson added: “This is not a white elephant stadium where no one wants it. We have had two big clubs fighting tooth and nail to get it.

“The new process will be more like how Manchester City took over the Commonwealth Games stadium, which is regarded as a leading example of how to do it.”

The tenants would pay an annual rent to the OPLC, which should prove to be less costly for the likes of West Ham.

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The move will also remove uncertainty over the stadium ahead of London’s bid for the 2017 world athletics championships, although that was not a major consideration in the decision to abandon the current deal.

The Government, the London mayor’s office and the OPLC have moved to scrap the current deal as there were fears that the legal challenges could take years to come to a conclusion.

It is understood that no contract has been signed with West Ham, allowing the move to a fresh tender process, but the club will be encouraged to bid again.

A joint statement by Ms Brady and Newham chief executive Kim Bromley-Derry said they welcomed the move.

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The statement said: “Uncertainty caused by the anonymous complaint to the European Commission and ongoing legal challenges have put the Olympic legacy at risk and certainly a stadium, as we envisioned it, may not be in place by 2014 due as a direct result of the legal delay.

“Therefore we would welcome a move by OPLC and Government to end that uncertainty and allow a football and athletics stadium to be in place by 2014 under a new process. If the speculation is true, West Ham will look to become a tenant of the stadium while Newham will aim to help deliver the legacy.”

Andrew Boff, Olympic spokesman for the Conservative Group on the London Assembly, said: “This catastrophe is entirely down to Sebastian Coe’s insistence that the stadium should retain an athletics track after the Olympics.

“That criterion reduced the number of bidders for the site and prevented any serious sustainable regeneration plans, with the exception of that by Spurs, coming forward.

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“Conservatives on the London Assembly warned the OPLC that sticking to this demand would threaten the long-term sustainable use of the site.

“Coe’s masterplan has turned the Olympic legacy into the Millennium Dome mark two but with a financial climate that gives it a less positive future.

“If the Government had insisted that an athletics track had been at the Dome, would it have been rescued by AEG?

“The OPLC, the mayor and the coalition have inherited some deeply-flawed legacy plans from the previous government. They must now put those plans right.

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“The Government and OPLC must now drop their demand for an athletics track to be part of any future regeneration.”

Mayor of London Boris Johnson said: “I am confident that this decision is the best way to ensure we have certainty over the stadium’s future.

“I believe it will also put us in the place where we always intended to be - delivering a lasting sustainable legacy for the stadium backed up by a robust but flexible business plan that provides a very good return to the taxpayer.”

Speaking at a business conference in Olympia, west London, Mr Johnson added: “As everybody knows, there has been a great deal of legal to-ing and fro-ing about the future of the stadium and I think we have come up with a very good solution.

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“We will keep it in public hands but we will effectively rent it to a football club, almost certainly West Ham, and that will cover the costs and I think it will be a very good deal for the taxpayer.”

Former mayor of London Ken Livingstone said: “With just eight months to the Olympic Games it’s essential this fiasco is sorted out quickly.

“The drift and delay we have seen over the past two years cannot continue. It’s time for the Mayor of London to get a grip and put the interests of Londoners first.

“I am extremely concerned to see suggestions by Boris Johnson’s allies that London should break its promise to Londoners and the world that there will be world-class athletics facilities in London for generations to come.

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“This shows the breathtaking level of chaos and indecision that there is in City Hall on this vital issue.

“It’s time for the Mayor to take responsibility and ensure the future of the stadium delivers the greatest possible value for London taxpayers and a world-class sporting legacy that will benefit ordinary Londoners.”

A Department for Culture, Media and Sport spokesman said the OPLC will seek leasehold football tenants as well as considering alternative options.

Mr Robertson said: “The Government is committed to securing a legacy from the Olympic stadium, and wants to see it re-opening in 2014.

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“The process to sell the stadium has become bogged down. We are acting today to end the legal paralysis that has put that legacy at risk.

“Ending the current sale process and looking for a leasehold solution will remove the current uncertainty and allows us to help secure the future use of the stadium with more confidence.”