Wednesday 31 October 2012

NFL franchises in talks with London Mayor Boris Johnson over Olympic Stadium - Telegraph.co.uk

West Ham have been favourites to take over the stadium since a shortlist, which had no NFL presence, was drawn up in July but they are cool on making such a payment. The club believe it is for the landlord to provide a suitable facility for its tenant.

With other events such as the 2015 Rugby World Cup, the 2017 World Athletics Championships and concerts due to take place at the stadium, the club have also pointed out in negotiations that they would not be the sole beneficiary of new seating arrangements.

This stance from a football club that could require full occupancy of the site more than 25 times a year might have been what encouraged Johnson to explore other tenancy options. An NFL anchor would require the facility for a maximum of 10 occasions each year theoretically permitting Formula One, already on the LLDC's shortlist of possible tenants, also to use the stadium for an annual race.

Bringing two new sports to east London would have commercial benefits for the capital, which could potentially reach the hundreds of millions of pounds.

"Sunday's game at Wembley, in front of more than 80,000 fans, further cements London's reputation as the natural home of American football outside of the US," the mayor's spokesman added. "Only last week the mayor, in conjunction with the NFL, announced an expansion from one to two regular-season matches in London from 2013. That means in total an additional £44 million in revenue for the capital from next year."

Turning to the biggest sport in the US would also avoid the potential complications presented by state aid for West Ham's bid, which the European Commission has said to have raised as a matter requiring clarification in a letter to the British Government. The European Commission has written to all member states about state aid to professional football, although the LLDC is confident that contributions for West Ham would not be classified as state aid.

Indeed, Johnson's soundings appear to chime with the stated aspirations of senior NFL executives. Robert Kraft, the New England Patriots owner whose team were one of four to play at Wembley this month, told the Boston Globe on Sunday: "For our game to continue to grow and be special we have to expand our fan base, and I think from our cultural and language point of view, going to England and playing there and developing the game made sense.

"We have such a following in the UK and people really grab on to the game. It's wonderful to see another country embrace our sport, and by bringing the real game there I think they have really loved it."

The Patriots have already made clear they would not be keen to relocate but the same might not be said of another side that came to London last week. The Jacksonville Jaguars, formed as an expansion team in 1995, have now signed a deal to host one of their regular-season matches every year until 2016.

"Everyone associated with the Jacksonville Jaguars is very much looking forward to our four home games in London through 2016," owner Shahid Khan said this month. Khan did not return calls to discuss the NFL's recent talks with Johnson. But he has been a cheerleader for his team's UK prospects.

How the rivals compare

West Ham United
In the 2010-11 season, the most recent for which figures are available, West Ham's match-day revenues were £18.8?million from Upton Park. At the 60,000-seat Emirates Stadium, Arsenal's were £93.1?million, hence West Ham's determination to become anchor tenants of the 50,000-seat Olympic Stadium. They remain favourites in the bidding race but, like other interested football clubs, West Ham's plans rest on the athletics track being placed under temporary seating. There is reluctance at the club to make a significant contribution to the estimated £160-£200?million cost of retractable seating.

Leyton Orient
Leyton Orient have about 5,000 match-going supporters but would need 27,500 to fill the lower tier of the Olympic Stadium (the top section would remain closed). However, Orient's owner Barry Hearn has come up with several creative marketing solutions for his proposal to turn the League One club into viable tenants for the Stratford venue. The first is to give away free tickets to under-18s, students and armed forces personnel. The second is to rebrand his club as London Orient, as revealed by The Daily Telegraph. Hearn's proposal is to share the ground with West Ham.

University College of Football Business
The UCFB proposes becoming a subtenant for the stadium in the same way as it occupies a stand at Burnley's Turf Moor. It wants to expand into a second campus and has been looking for a site in the south of England. The Stratford site is its preferred option. A spokesman described the institution's plan as being to "take a proportion of the stadium. The seating is not particularly relevant because we would be using the back rooms. But we would be keen on access to a part of the site overlooking the pitch or that green area, depending on the anchor tenant".

Formula One & Intelligent Transport Services
Bernie Ecclestone has made plain his frustrations with the ageing Silverstone facilities that host the British Grand Prix. He has been taken by ITS's proposal for a race through and around the Queen Elizabeth Olympic Park, which Ecclestone said would even take F1 cars inside the stadium. He told The Daily Telegraph yesterday that he has held further dialogue with Harvey Goldsmith, who advised Anschutz Entertainment Group on the redevelopment of the O2 into a concert venue, over the prospect of hosting live events at the stadium.

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