West Ham move to London's Olympic Stadium in doubt

Oct 11, 2011, 6:46 GMT

London - The deal for West Ham United to take over the Olympic Stadium in east London has collapsed, the British government is expected to announce on Tuesday.

Following legal challenges by Tottenham Hotspur and Leyton Orient, and an anonymous complaint to the European Commission, there are fears that court action could drag on for years with the stadium unused.

Sources report a ministerial statement will be released at lunchtime announcing that the stadium will remain in public ownership and leased out to an anchor tenant following a new tender process.

A new tender process would be undertaken, under which prospective tenants would pay annual rent to the Olympic Park Legacy Company while committing to retain the running track.

Although that could prove cheaper for clubs, at least in the short term, there are doubts as to whether clubs would be keen on not owning their stadium.

The decision has been taken in an attempt to end the legal wrangling after an anonymous complaint to the European Commission, claiming that the 40 million pounds (62.5 million dollars) provided by Newham Council to West Ham represents 'state aid'.

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