Finance

West Ham claims legal win over London Stadium landlord

Featured image credit: Dan Poulton on Unsplash

The London Legacy Development Corporation (LLDC), which owns London Stadium, has been ordered to pay West Ham United £3.6m (€4.3m/$4.5m) after losing a court case against the Premier League club.

The payment is linked to Czech billionaire Daniel Kretinsky’s purchase of a 27-per-cent stake in the club back in 2021. The deal was reportedly worth between £180m and £200m.

West Ham’s lease agreement with E20 Stadium LLP, a subsidiary of the LLDC which operates the venue, states that the club’s owners must pay E20 a share of any profit made by selling shares in the club. The 10-year clause expired in 2023.

The club and E20 have disagreed over whether the sale of shares to Kretinsky entitles E20 to any payment. E20 had sought more than £6m, while West Ham had only agreed to pay £2.5m.

West Ham did pay a further £3.6m to E20 but the club took the matter to London’s commercial courts. The High Court has now ruled that an expert determination ordering the club to pay the money contained two “manifest errors”, meaning that E20 must repay the £3.6m sum.

In the ruling, which was reported by The Times, Paul Mitchell KC, the deputy High Court judge, said: “In my judgment WHH (WH Holding, West Ham’s parent company) has proved that the expert determination in this case contains two manifest errors. Accordingly, I shall grant the declaration sought by WHH that the determination is not final and binding on WHH.”

An LLDC spokesman added: “West Ham appealed the determination, as it is entitled to do, and the court has found in its favour. We have reviewed the judgment and are currently assessing our options – including the potential for an appeal.”