Barry Hearn has warned he is still considering taking his case to the European Commission. Hearn believes the LLDC’s decision to hand West Ham tenancy of a £400-million stadium for just £2m-a-year rent amounts to illegal state aid. He recently said: “This is a huge sponsorship of a major commercial enterprise, which we believe is against EEC rules.”
However he didn’t seem to have a problem with so called ‘state aid’ when he bid for the Olympic Stadium or when he proposed a ground share. But his double standards go much further than that.The question is whether Leyton Orient has benefited from state aid from the London Borough of Waltham Forest?
The Brisbane Road land freehold on which the Matchday Stadium is built is owned by London Borough of Waltham Forest. The terms of the 999 year lease from Waltham Forest are said to be just £1 per year according to The Leyton Orient Fans Trust.
In 2004, the Council entered into a deed of variation to the LOFC ground lease. This excluded the corner sites of the Brisbane Road ground from the Leyton Orient lease and enabled them to be sold to Bellway Homes for residential development of flats. As a result of this agreement received a sum of £7.35m with just £1m being agreed as payment to the Council who owned the freehold.
The 2006 by London Borough of Waltham Forest cabinet decision can be found HERE
In 2009 Leyton Orient sold the Brisbane Road stadium together with it’s 990 remaining year lease to Matchroom Sports Limited .Matchroom then granted only a 20-year lease to the club, rent-free only for the first five years, then £180,000 a year for the next five years, and reviewed again in years 10 and 15.
This 2009 Leyton Orient Fans’ Trust Official article on their Website shows Leyton Orient fans opposition to this plan.
The same Leyton Orient Fans’ Trust (LOFT) say on the website in relation to the Olympic Stadium “we cannot support a move to the Stadium for Leyton Orient until supporters have been properly consulted and the implications (both financial and matchday experience) have been made clear.”
Barry Hearn said in a recent London Standard West Ham have “the deal of the century”
Well Barry renting your land from the local council at £1 per year for the next 986 years and selling land you don’t own for a £6.35m profit isn’t too bad too when it comes to deals. “the deal of the millennium” perhaps Mr Hearn!
What is the saying? ‘People who live in glass houses shouldn’t throw stones’
I have submitted a freedom of information request to Waltham Forest Council about their lease with Leyton Orient Football Club & Matchroom Sports Limited