In the second of the Moore-Stephens series Blind Hammer looks at Stadium Capacity.
Nothing typifies the financial crisis surrounding the London Stadium more than the issue of seating. In my last Moore-Stephens post I looked at “relocatable seating” and the lack of a business case for this.
Today I look at the Concessionary Agreement and Stadium Capacity.
When West Ham entered the Stadium they believed that they had an agreement to increase the Stadium capacity to 60,000. In the event after the rowdy actions of gormless idiots, who struggle to rub a brain cell together, at the now infamous Chelsea game, capacity was restricted to 57,000. In fact this misbehaviour of the few morons, who thought they were somehow clever in confronting Chelsea fans, was not that serious in the general scheme of football disorder. However their stupidity was instantly seized upon by E20 as a bargaining chip to try and extract more money. It is clear now that there will be no application for a Safety Certificate to return agreed capacity to 60,000 in advance of a renegotiation.
So if Sadiq khan and E20 want to renegotiate we need to start with an analysis of the Concession Agreement.
There is both good and bad news.
The bad news is that the Agreement does not guarantee a capacity of 60,000. In fact there is not even any agreement to support the current 57,000. The relevant section is copied below.
- Agreed Capacity means, subject to Clauses 15.5 to 15.8:
(a) A minimum of 53.500 seats when the Stadium is provided in Football Mode including a
Minimum of 3,400 Club Seats; or
(B a minimum of 49,500 seats when the Stadium is provided in Athletics Mode including a
Minimum of 3.400 Club Seats.”*
” seat in that area of the Stadium indicated as “Hospitality”, “Hasp+ Boxes”, “VIP
I Hospitality”, “VIP I Directors”, “VIP” or “Corporate Boxes” ….”
So there is the possibility that in the event of further crowd trouble Stadium capacity could again be punitively reduced. In theory capacity could drop to 53,500 and still comply with the Agreement. In such an event E20’s argument, as before, are likely to revolve around the need for health and safety and security. However this could provide a thin veil for another agenda. E20 made this “commercial” agenda explicit when they responded to Sean Whetstone’s questions on Stadium Capacity earlier this year.
They stated then:
““Any future application for an increased capacity at the Stadium is dependent upon an ongoing assessment from a legal, health and safety, and commercial perspective.”
E20 have therefore unabashedly admitted that Stadium Capacity is of “Commercial” interest to them. Realistically we should expect nothing but stonewalling from E20 in advance of any renegotiation.
However the Concessionary Agreement contains good as well as bad news.
After my first post some supporters feared a scenario where West Ham were forced to play in a Stadium in perpetual Athletics mode. The Agreement shows that these fears are groundless. West Ham are the “Anchor Tenants” and their rights are dominant. Some example passages from the Agreement are copied below.
“* Football Mode Seating Requirement means a temporary seating structure to cover the running track and provide seating on each side of the playing surface with the front of each seat in the front
row of the Lower Tier being between 10 metres and 20 metres (inclusive) from the edge of the
playing surface, and adequate roofing to cover all the seats provided in the temporary seating structure that will provide the Stadium with the Agreed Capacity”*
And again:
”uphold the Overriding Priority Principle in accordance with Clause 7.1 (Overriding Priority Principle):
Provide the Stadium in a Fit and Proper Condition and to the Agreed Capacity for each Event in accordance with the Agreed Event Calendar:
1.1 Retractable and/or re-locatable Lower Tiers.
1.2 The front of each seat in the front row of the east and west Lower Tiers to be between 10 and 20
Metres from the touchline opposite the centre spot.
1.3 The front of each seat in the front row of the of the north and south Lower Tiers to be between 10
And 18.9 metres from the goal line opposite the penalty spot.
1.4 Position and rake of the tiers designed so as not to obstruct the sightlines from the Upper Tier seating
and provide reasonably acceptable viewing standards for those within the Lower Tier.
1.5 A new permanent and fixed mid-tier on the west side of the Stadium in order for spectators to gain a
view over the west Lower Tier in Football Mode”
The commitment to the Stadium in Football mode runs throughout the agreement and there is no practical way that E20 could renege on this. There are arrangements Where E20 can remove relocatable seating but these are heavily hedged to certain event windows and if E20 breach these windows they become liable to pay compensation. E20 can avoid providing relocatable seating “in the event of Force majeure”, that is a natural or other disaster. The example given in the Agreement is a “Radiation attack”.
So in all practical terms the Stadium has to be provided in Football mode as a matter of “Overriding Principle”.
The question for any renegotiation then becomes not whether there will be a Stadium in Football mode, but what type of Football stadium it should be. , West Ham will need to clearly stake out what capacity they want, and renegotiate other Stadium features. What should inform these aspirations will be discussed in the next part of this series.
COYI
David Griffith