West Ham Olympics stadium deal falls through

The Department of Culture, Media and Sport (DCMS) has confirmed that arrangements for possession of the Olympic Stadium when the 2012 games finish, which was won jointly by West Ham FC and Newham Council earlier this year, have collapsed.

The breakdown occurred after months of wrangling over how the deal would be structured and paid for, and complicated by a legal challenge from Tottenham FC. In August 2011 Tottenham won the right to challenge the West Ham deal in the High Court, with allegations that centre on (i) whether the council was right to use public funds for the bid, and (ii) the role played by the Olympic Park Legacy Company and two government departments in awarding the bid. A full hearing in the court is due to start on 18 October.

The DCMS is expected to put the stadium back out for tender shortly, but this time on the basis that it would remain in public ownership and be rented to West Ham in the winter and UK Athletics in the summer. The Guardian reports that a joint statement from the West Ham vice-chair Karren Brady and the Newham council chief executive Kim Bromley-Derry welcomes the move to bring clarity to the process.

A variety of firms have been involved in the stadium wrangling so far: Gateley LLP acting for West Ham, Trowers for Newham Council and Olswang for Tottenham.