Leyton Orient chairman Barry Hearn believes that Newham Borough Council is in breach of European law over a £40 million ($65 million/€46 million)loan made to the Legacy Stadium Partnership, a joint West Ham-Newham Council venture for the reconstruction of the Stadium after the Olympics and Paralympics.

The League One club believe this to be "unlawful state aid", and Hearn spoke at the club's open day to confirm that he had not given up the challenge.

"Obviously we lost the written submission for the judicial review which was just an unbelievable decision," he said.

"I don't know what the judge was thinking about.

"We're employing the very best judicial review lawyer in the world, Adam Lewis, and he was gobsmacked.

"So we've gone on with the oral submissions, which is the next stage where you have to go and make your case in person and we are confident that there will be a judicial review because we think it's black and white.

"There's an awful lot of complications on it in terms of Newham Borough Council.

"Have they made the loan or haven't they?

"On the one hand they say when we are asking them they haven't authorised the loan yet, they've merely made the chief executive empowered to do the deal.

"But of course when Tottenham [Hotspur] ask them they have made the loan because otherwise they wouldn't fulfil category one of the undertakings for the occupation of the stadium.

"If the European Commission look at it, you can throw away anything for four years because if they look at it, there's an awful lot of European MPs who like that type of investigation and it would be quite interesting."

Hearn is livid that West Ham are being allowed to move into a stadium barely a mile from Leyton Orient's Brisbane Road, which he claims has the potential to put them out of business within a few years.

Hearn warned fans that the options facing the club are narrowing, and hinted that the club may be forced to move to a new area.

"Orient fans should be aware that it really is a life and death thing," he said.

"If there are 30,000 free tickets or cheap tickets available a mile up the road, over a period of three or four years it will kill us.

"We've commissioned an independent audited report on the financial effects on Orient with West Ham in place and it is a disaster."

Tottenham are awaiting the outcome of an oral hearing into the decision, expected later this month, after the initial appeal lodged with the high court was unsuccessful.

The Olympic Park Legacy Company, who awarded the rights to move into the ground to West Ham, are unable to comment on the case whilst legal proceedings are ongoing, but a Newham Council spokesman reaffirmed their belief in the validity of the winning bid.

"We are confident our joint bid with West Ham United Football Club is robust and will provide the only true community legacy," he said.

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