E20 Stadium, the body set up to run the London Stadium in the English capital, is set to target more major music concerts and sporting events as it seeks to ease concerns over its long-term financial future.
According to the Evening Standard, E20 Stadium, a joint venture established by the London Legacy Development Corporation (LLDC) and Newham Council, is at risk of going into administration.
Although sources have said that these reports are “premature” and the body is doing everything it can to avoid using more taxpayer money, the LLDC has set aside an additional £200m (€225.5m/$262.1m) in terms of potential future losses at the stadium should no action be taken to halt the financial slump.
A source close to E20 Stadium, told the Evening Standard that one of its main strategies is to secure hosting rights to more major events.
London Stadium already serves as the home of English Premier League football club West Ham United, which pays £2.5m a year for the privilege of playing a the venue, while the facility also regularly hosts athletics and music events.
“We are looking at how we can improve the commercial performance of the stadium by bringing in other events, in particular, events that make more profit,” the source said.
“The stadium itself runs incredibly well and the World Athletics Championships this summer sold out. The issue is how do we drive the costs down and grow our revenue.”
The LLDC is said to be keen on renegotiating terms with West Ham over the cost of its yearly lease, as well as exploring ways to reduce the cost of moving seats in the stadium each summer to make it ready to host athletics events, before then switching them back for football use. The process currently costs around £8m each time.
Stadium operators are also under scrutiny as to why it cost £323m to convert the stadium for use as a permanent home for West Ham.
However, despite ongoing uncertainty over the future of E20 Stadium, Sky Sports news said that the club is safe at the venue, with its tenancy contract stating that should E20 Stadium go into administration, the deal would be transferred to the LLDC.