The deal to award London’s Olympic Stadium to West Ham United soccer club after next year’s Games has collapsed because of mounting concerns about legal challenges over the bidding process, a British government official said yesterday.
The £486 million (US$760 million) stadium will instead remain in public ownership after the Olympics and be rented out to the winner of a new bidding process, the official with direct knowledge of the situation said.
He spoke on condition of anonymity ahead of a planned announcement that is set to confirm the stadium will still be downsized from 80,000 to 60,000 seats after the Olympics.
The battle for the control of the stadium has been increasingly acrimonious since West Ham were selected ahead of London rivals Tottenham Hotspur in February to be the preferred long-term tenant.
London’s High Court had approved Tottenham’s request to mount a full legal challenge against the decision by West Ham’s local authority to provide a £40 million loan to fund the second-tier club’s move to the stadium.
Fourth-tier east London club Leyton Orient was also challenging the decision, while an anonymous complaint to the European Commission about the apparent use of “state aid” by West Ham fueled concerns that the legal disputes could drag on for years.
London police are also investigating claims by West Ham that a private investor it claims was working “under instruction by Tottenham” unlawfully obtained bank and phone records belonging to executives involved in the bidding.
With West Ham yet to sign any contracts, Olympic Park Legacy Co has instead decided to start another bidding process.
While not confirming the new developments, West Ham said it would bid again under the new terms that could be more financially favorable for the east London club, who were relegated from the Premier League in May.
One certainty is that the running track will remain in the stadium regardless of the outcome, with London bidding to host the 2017 world athletics championships.
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