It was more complicated than that, I think City chipped in money for the conversion to a football stadium after the Council/Govt funded Commonwealth Games and the council got some of the gate money up to a certain attendance and City got to keep anything above that level. That arrangement may have changed.
I remember City lurker
petrusha explaining it at the time, way before the Abu Dhabi involvement and it seemed to make sense at that time, although I don’t recall the detail.
Yes, I remember writing about this. It was back in the days when you were JOS Blade, I think. I appreciate this is a niche interest on here (probably relevant to me alone), but the odd person may be interested so here goes again.
Unfortunately the details of the financing of the Commonwealth Games stadium are no longer on the Sport England website, but I wrote a lot about this for City fanzines and websites at the time. The bottom line is that the difference in cost between the stadium handed over to City after the Games (converted using public money) and a GBP 60 million temporary venue that would have been dismantled after the Games (which Sport England had committed to funding in its entirety) was GBP 70 million.
City paid £6 million up front, transferred Maine Road to the Council (valued at £27 million in the books, though they only got £14 million from the sale of the site for housing), paid rent of £14 million for the first 8 seasons, and since the start of 2011/12 have paid a flat fee of £4 million annually (the lease was renegotiated to allow for expansion and the sale of naming rights). Thus, by summer 2022 the Council has received a further £44 million from the club for rent/naming rights. That makes a total of £78 million that City have paid so far. In addition, the club paid in full for fitting out the stadium (bars and other concession stalls, offices, dressing rooms, corporate facilities, etc.) and has paid for the 2015 expansion plus other improvements over time in their entirety. The stadium has been available for community use on 100 days each year.
City's most recent published accounts reveal that the club is due to pay a further £62 million in rent before the club has a right to purchase the stadium under the lease. That will give direct payments to the public purse of £140 million by that point, i.e. more than the GBP 130 million the whole stadium cost, including the conversion to football mode.
It's still a great deal for Man City and the club got incredibly lucky. However, the idea that it was a gift from the public purse is off the mark. On the other hand, neither West Ham nor anywhere else will get within a million miles of making the London Stadium value for money for the public purse. According to The Guardian in 2015, the cost of the stadium as it was during the 2012 Olympics was £429 million. According to this press release from the London Assembly in 2018 -
The full cost of London Stadium - the "cost of retrofitting the Stadium has risen from a budgeted £190 million to £323 million". That gives a total of over £750 million spend on the stadium in its current form.
Moreover, West Ham paid £15 million towards the post Olympics transformation (less than 5% of the total conversion cost) and will pay £2.5 million per year on a 99-year lease. But even though, unlike City, West Ham get nothing from other events at the venue, the London Assembly admitted that original forecasts of the stadium generating an annual surplus were pie in the sky: it "will now lose over £10 million every year," they said.
OK, that's it. I just wanted to stress that, while these two cases are often bracketed together, they're really not all that alike except in that they involve a football club being the tenant of a public body. In one, funds are returned to the public purse at least in line with the original build costs, but in the other, hundreds of millions of pounds of public money have been wasted on a venue that is a poor fit for its main long-term purpose and the amount squandered grows year on year.
Anyway, sorry for hijacking the thread. I've finished now.
