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High costs FA takes Wembley plans back to drawing board
LONDON (Reuters) -- The English Football Association (FA) announced on Friday that its plans to redevelop Wembley stadium were going back to the drawing board. An FA board meeting unanimously agreed on a five-point plan to re-think the stadium project, which has faced criticism over its estimated total cost of 660 million pounds ($954.7 million). In a statement, the FA said it would be assuming more day-to-day control of Wembley's redevelopment, before adding that current financing plans, involving a syndicate of banks, would be scrapped while a new format for the stadium was sought. The FA promised that "the new format will be a demonstrably different proposition, which will focus on its desire to be the best football stadium in the world." The FA also appeared to confirm earlier speculation that plans for hotel, office and banqueting facilities would be axed, announcing that "the new format will not include non core-business activity." Under fire for the escalating cost of the new stadium, the FA also pledged "that within this new format, all costs will be attacked vigourously." The new plan will be drawn up in the coming weeks, the FA said, before it is presented to City institutions early 2001. The changes have the backing of the project's lead bank Chase Manhattan, which will head any future banking syndicate, the British government and Sport England, it added. The statement, which was read out at FA headquarters by executive director David Davies, also insisted the troubled project still had the support of those involved. "All parties believe passionately in the project," the FA said. "They share the desire to build a world-class stadium that England can be proud of; also a stadium that has the ability to run as a profitable business which will provide long-term income to help fund grass-roots football in England." Since the FA first announced its desire to create a new Wembley almost 12 months ago, the issue has been a contentious one. A national debate raged in England for months before it was decided that the famous Twin Towers would be demolished to make way for the new designs. The cost of rebuilding Wembley over the next four years has also increased. It was orginally estimated at 240 million pounds ($347.2 million) but in October that figure had soared to 660 million pounds ($954.7 million). The Olympic stadium in Sydney, called Stadium Australia and used for September's Olympic Games, cost 300 million pounds ($434 million) to build, while the Stade de France in Paris totalled 260 million pounds ($376.1 million) and the Millennium Stadium in Cardiff amounted to 180 million pounds ($260.4 million). English newspapers reported on Thursday that prospective lenders were sceptical about the amount of revenue the new complex would generate. An unnamed source from a bank that reportedly refused to participate in the Wembley deal was quoted as saying: "We couldn't believe the cost of the project...We couldn't get comfortable with the projected revenues."
Copyright 2003 Reuters Limited. All rights reserved.
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