True price of Wembley delays revealed

Matt Scott
Friday September 28, 2007
The Guardian

The enormous financial cost of the delays to the Wembley National Stadium project has been exposed in accounts filed this month at Companies House by the venue's operators. The stadium had been due to open in time for the 2006 FA Cup final but construction difficulties meant a 12-month wait before its first full-capacity match could be held. With income frozen, Wembley National Stadium Ltd missed its first scheduled payment to the banks of £64.1m, leading to a £2.8m penalty being added to the bill.

Then there was a £12.56m settlement with the builder, Multiplex, as compensation for design changes to the stadium which it claimed were at least in part responsible for the delay to completion. The final unexpected burden on finances came in the shape of the £445,000 compensation package paid to WNSL's sacked chief executive, Michael Cunnah.

Having been sidelined for several weeks while Alex Horne, the FA's finance and human resources director, took a more hands-on role, Cunnah was finally fired last December. He received £445,000 severance in addition to his £337,000 salary and £55,000 pension contributions.

The banks insisted the £64.1m gap had to be partially plugged by WNSL's parent, the FA. The FA believes it will all be worth it now, claiming that with Wembley now operational and new television deals set to come on stream, the organisation will soon boast a £200m-a-year turnover.

Chelsea's cash blues

After changing their manager Chelsea are again expected to embark on a spree for the world's top players, and Ronaldinho is the latest to have been linked with Stamford Bridge. But if the club intend to make their move during the January transfer window they have an expensive few months in front of them - the £36m balance of the Eurobond loan taken out by Ken Bates's regime in 1997 is due for repayment in December.

McLaren count cost

Money has clearly not been enough to warm Ron Dennis's "extremely cold relationship" with Fernando Alonso. The formula one team benefits from the biggest budget on the starting grid. And, according to Christian Sylt, co-author of the Formula Money analysis of F1 income, much of their revenue is thanks to Alonso having joined them from Renault last year as a world champion. "Alonso brought with him US$25m [£12m] in sponsorship and McLaren could lose around $10m or $20m if Alonso goes," said Sylt. Among the companies attracted by Alonso's talents was the Madrid-based insurance firm Mutua Madrileña, which joined directly from Ferrari when the Spaniard signed. Sylt suspects that the association of Vodafone, which committed to its $65m title sponsorship while McLaren was courting Alonso, might not be unconnected.

Leeds 'making fuss'

Leeds United's reaction to the Football League's 15-point penalty has met with astonishment. Yesterday the chief executive, Shaun Harvey, was complaining about "a matter which we believe is fundamentally wrong, and sets a dangerous precedent", after the FA refused the club's request for an inquiry into the league's handling of their exit from administration. Sources say that Leeds signed up to the penalty in return for the "golden share" which must be granted by the league to each of its members - although they immediately appealed it - and cannot see why the club is making a fuss.

League board entrusted

The Football League has announced the composition of its trust board that will distribute money to its clubs from the £9.4m-a-year "solidarity payment" from the Premier League. That money is for community and youth development and comes from the £90m, three-year funding from top-flight clubs. Heading the board is Dave Edmundson, the former Burnley chief executive, alongside a representative from the Premier League and the Professional Footballers' Association. The chair is Nottingham Forest's chief executive, Mark Arthur.