West Ham have a 99-year lease to play at the London Stadium.
London Mayor Sadiq Khan is to take over control of the London Stadium, where West Ham play, it has been announced.
An independent report published on Friday said there had been "a catalogue of errors" leading to massively increased costs over the stadium's conversion after the London 2012 Olympics.
It was a "bungled decision that has left the taxpayer to foot an annual loss of around £20 million," the review said.
Khan said: "I ordered the review into the finances of the London Stadium to understand how key decisions were made about its transformation and why costs were allowed to spiral out of control.
"What has been presented is simply staggering. Not for the first time, it reveals a bungled decision-making process that has the previous mayor's [Boris Johnson] fingerprints all over it."
Khan ordered the investigation after it was revealed that the bill to taxpayers for converting the stadium into a multi-purpose venue had climbed to £323m.
London Legacy Development Corporation (LLDC), the body that operates the stadium for the Greater London Authority, admitted problems with the venue's retractable seating were the biggest cause of the rise in costs.
West Ham, who have a 99-year lease on the 60,000-seat stadium, made a one-off contribution of £15m to the conversion costs and pay £2.5m a year in rent.
The total price tag for the stadium, which also has a new roof, is estimated to be £752m.
Khan commissioned a review by forensic accountants Moore Stephens in March 2017, and the 169-page document warned that the cost to the public was never going to be recovered.
It said the stadium would continue to lose up to around £20m every year.
Mr Khan said he was "determined to put the London Stadium towards a stronger financial footing and secure its long-term future" but warned that it would "take time and some real commitment from all partners to make this work."
A West Ham United spokesperson said: "As the report confirms, the Concession Agreement is a watertight, legally binding contract signed in 2013 in good faith by West Ham United, who remain absolutely committed to its terms for the entire 99-year duration.
"We have delivered everything we committed to within the Concession Agreement, and act as the primary vehicle for London Stadium's legacy, delivering its most watched sporting spectacles, revenue driving events and thousands of jobs for local people.
"It is not in West Ham United's interests for the Stadium to not be performing in line with aspiration and, as we have done ever since moving to Stratford in the summer of 2016, we continue to offer the benefit of our commercial expertise and substantial experience in managing successful stadia.
"West Ham United will continue to devote our absolute commitment to London Stadium, but our first priority in this sense is always to act in the best interests of our supporters.
"We fully concur that West Ham United has played a significant part in the most successful regeneration programme in the history of the modern Olympics.
"However, the stadium itself craves renewed leadership and direction and we welcome the Mayor's decision to step in and deliver this. West Ham United is firmly behind him."
The Moore Stephens report said the decision to transform the stadium and enter into contract with West Ham was "made on incorrect financial estimates and an insufficient appreciation of the critical commercial and financial risks."
Sources close to Johnson rejected the criticisms and said: "The stadium has a secure future with athletics and football."
Comments
Use a Facebook account to add a comment, subject to Facebook's Terms of Service and Privacy Policy. Your Facebook name, photo & other personal information you make public on Facebook will appear with your comment, and may be used on ESPN's media platforms. Learn more.
Source: espn.co.uk