The law firm that helped West Ham land a bargain deal to make the London Stadium their home has paid a settlement worth a reported seven-figure sum following a legal fight over the agreement.
E20 Stadium LLP, the commercial wing of the London Legacy Development Corporation, which owns the stadium, sued Allen & Overy over alleged negligence for their part in agreeing the deal that handed the Premier League club a 99-year lease in 2013.
At the time, the agreement was dubbed “the deal of the century”, with the Hammers keeping ticket revenue in exchange for an annual rental fee, while the publicly-owner E20 front major costs such as heating, cleaning and maintenance, as well as the cost of transforming the ground to host athletics events.
Last season, West Ham paid rent of just £3.6million, while each match played at the ground is said to cost the taxpayer around £100,000.
E20’s annual report, published earlier this week, confirmed: “During 2022-23, E20 Stadium LLP commenced legal proceedings against Allen & Overy for their role in drafting the London Stadium concession agreement. This dispute was settled before a court hearing.
“The details of the settlement are confidential; however, the related transactions are recognised in the 2022-23 financial statements (within exceptional income).”
The accounts show E20 received £8.5m in exceptional income, with The Times claiming that up to £2m of that figure is related to the out-of-court settlement.
When asked for comment, E20 stated: “E20 Stadium LLP, London Legacy Development Corporation and Allen & Overy LLP have reached a resolution of the litigation between the parties concerning the March 2013 WHU Concession Agreement. The terms of the settlement are confidential.”
Allen & Overy have also each been approached for comment.
