This sort of thing routinely happens in the US with sports franchises screwing over city authorities (i.e. the taxpayer) when it comes to financing new stadiums.
The difference is that the US sports franchises are usually already in situ, and can threaten to go elsewhere unless the existing city match/exceed the new city's best offer.
Whereas WHU have no such leverage.
Therefore they should have been told "Move into the Olympic stadium on
our terms, or sod off."
Additionally, when City Authorities in the US agree these things, they are often directly answerable to the civic electorate, indeed they often stand on those grounds i.e. "I'll keep/attract the XYZ'ers".
Whereas our poor benighted taxpayers were told that this would be an athletics-only stadium, and it designed as such, despite all the evidence of previous Olympics showing that there could never be enough demand from Athletics to make it pay.
Then when that became undeniable, the Government blithely stumped up £X millions more to convert it and invited WHU in on incredibly easy terms, with no-one being held accountable and no chance of the public getting to complain.
In short, an absolute scandal.
(Meanwhile, the FA stand idly by while the local club, Orient, will get absolutely shafted when WHU move onto their patch, despite this being contrary to FA rules. Not that that should surprise us, mind, considering they did it before with MK Donkeys)