Telecoms giant Vodafone are understood to be close to agreeing a £20 million naming rights deal for the London Stadium, home to West Ham United. However, the Hammers will not initially receive any of this revenue as they don’t own the stadium.
According to Sky News, talks between Vodafone and the London Legacy Development Corporation (LLDC), the stadium’s owners, have been ongoing for “several months” since the naming rights were put up for sale.
It is reported that an agreement is now nearly in place and will be implemented over the summer, in order for the ground to be renamed in time for the 2017/18 season. In exchange for the naming rights, Vodafone will use the deal to showcase new technology and offer high-speed mobile connections to supporters at the ground.
LLDC will benefit greatly from the deal, as they will bring in the entirety of the £4 million naming rights revenue each season. Under the terms of the lease, West Ham will only receive 40% of any revenue over £4 million a season, and if they are relegated from the Premier League this will drop to 35%.
As such, the club will not benefit financially at all from the deal, but The Telegraph report that the value of the deal will increase over time and breach the £4 million threshold required for the Hammers to profit themselves from the naming rights deal.
