Arsenal delay stadium plans due to lack of funds

ARSENAL have revealed a delay in their new stg£400 million stadium project, admitting the ground will not be open on schedule in time for the start of the 2005-2006 season.

The club stressed their continued commitment to the Ashburton Grove proposal but, just like the Football Association found with the new Wembley, they are experiencing financing difficulties in a testing economic climate.

Project Finance International magazine reported earlier this month the bank behind the financing of the planned 60,000-seater ground have ensured themselves a get-out clause if they fail to persuade other lenders to back the project.

The Royal Bank of Scotland, who are arranging a stg£300million loan over a 17-year period, are attempting to syndicate parts of that loan out to other banks.

However, the report stated that rather than underwriting the entire deal, the Royal Bank of Scotland are working only on a ‘best efforts’ basis.

Arsenal still remain confident they will secure funding for the scheme, even though costs have risen significantly since the switch of ground was first announced.

The project was also initially delayed by planning issues, given the opposition of a number of local residents to the proposals, which involve the relocation of a waste transfer site, although these have now been resolved.

In a statement yesterday, the club nevertheless revealed: “We have experienced a number of delays in arrangements for our new stadium project in recent months across a range of issues.

“This has not been entirely unexpected given the complexity of the project, which involves not just the construction of a new stadium.

“It also involves directly-related legal, finance and property issues, transport infrastructure, relocation of existing local statutory services and businesses, provision of affordable housing and significant regeneration of the local area. The impact of these delays is that we will now be unable to deliver a stadium opening for the start of the 2005-06 season.

“We are actively progressing all aspects of the project and continue to be fully committed to Ashburton Grove with the objective of delivering a stadium opening at the earliest possible date.

“The directors of Arsenal Holdings plc accept responsibility for this announcement,” the statement said.