Memorandum submitted by Wembley National
Stadium Limited
1. INTRODUCTION
1.1 This memorandum is structured against
the same headings as the memorandum submitted to the Culture,
Media and Sport Committee in April 1999 and updates where necessary
the information supplied in April 1999.
2. THE COMPOSITION
AND ROLE
OF THE
COMPANY
2.1 The Company has changed its name from
the English National Stadium Development Company Limited to Wembley
National Stadium Limited (WNSL).
2.2 As at April 1999 there was one Board
position vacant. This position has now been filled by Clive Sherling,
Chairman of the Football Licensing Authority and Director of APAX
Partners. Clive Sherling was nominated by the English National
Stadium Trust.
3. THE PROCESS
FOR THE
ACQUISITION OF
WEMBLEY STADIUM
3.1 The Stadium was acquired from Wembley
plc on 15 March 1999.
4. THE TIMETABLE
FOR THE
REDEVELOPMENT
4.1 The key dates for the redevelopment
as at April 1999 and January 2000 are set out below:
|
| April 1999 | January 2000
|
|
| Submission of Planning Application | October 1999
| Achieved—
15 November 1999 |
| Planning Permission Obtained | March 2000
| April 2000 |
| Stadium Closure | August 2000
| August 2000 |
| Demolition Commences | September 2000
| September 2000 |
| Stadium Completed | March 2003
| March 2003 |
| Stadium Opened | May 2003 |
May 2003 |
|
5. THE FINANCING
OF THE
NEW STADIUM
5.1 The estimated costs of the redevelopment as at April
1999 and January 2000 are set out below:
|
| April 1999
| January 2000 |
| £m
| £m |
|
| Acquisition | 106
| 106 |
| Construction | 198
| 334 |
| Project Management | 12
| 12 |
| Funding Costs | 16
| 23 |
|
| Total | 332
| 475 |
|
5.2 The increase in the construction costs between April
1999 and January 2000 is detailed below:
|
| | £m
|
|
| — | Additional 10,000 seats to increase capacity from 80,000 to 90,000
| 40 |
| — | 100,000 square feet of Commercial Office Space
| 14 |
| — | 200 Bedroom Hotel
| 21 |
| — | Upgrade of Spectators' Facilities
| 61 |
| | 136 |
|
5.3 The funding will be structured as set out below:
|
| April 1999
| January 2000 |
| £m
| £m |
|
| Grant | 116
| 116 |
| Debt | 200
| 343 |
| Operating Profit | 16
| 16 |
|
| Total | 332
| 475 |
|
5.4 The items included at 5.2 above will generate additional
profits capable of supporting the additional debt funding of £143
million.
5.5 An outline business plan was circulated to a number
of funding institutions in November 1999. Discussions are continuing
with a number of institutions and it is anticipated that a preferred
funder will be appointed in February 2000.
6. THE DESIGN
OF THE
NEW STADIUM
6.1 The design of the Stadium is driven by many
factors including:
— The Lottery Funding Agreement requirements;
— The Green Guide requirements;
— The primary and secondary uses for the facility;
— Customer expectations;
— The cost to value relationship of discretionary facilities;
and
— Profitability and fundability.
6.2 The above is a complex set of requirements which
had to be resolved to ensure that the eventual design complies
with both WNSL's contractual obligations and best practice in
terms of design and safety whilst at the same time remaining fundable.
6.3 As set out in April 1999 the Lottery Agreement included
a number of mandatory technical requirements which can be summarised
as an international quality football and rugby league stadium
for a minimum of 80,000 spectators and an international quality
athletics stadium for 65,000 spectators.
6.4 WNSL and the design team considered for many months
during late 1998 and early 1999 the design solution for combining
football/rugby and athletics. The primary and only contractually
committed events for the Stadium are football and rugby league.
It had been agreed with both Sport England and UK Athletics that
a reasonable forecast of athletics usage was once every 10 years
for major bid international events such as the Athletics World
Championships and the Olympics. This being the case it was clear
that the Stadium had to be designed primarily for football and
rugby league but be capable of conversion to athletics if and
when an athletics event was secured.
6.5 The proposed design when converted to athletics format
would have a capacity of up to 80,000 with sightline characteristics
similar to those for Stade de France and a quality of spectator
provisions far higher than Stade de France.
6.6 Outline terms had been agreed with UK Athletics in
relation to the World Athletics Championships for 2005 and it
had been accepted by UK Athletics that the Stadium met all of
the IAAF requirements for international athletics events.
6.7 The technical solution adopted for the conversion
from a football and rugby league stadium to an athletics stadium
was the construction of a platform approximately six metres above
the football/rugby pitch.
6.8 The platform solution for conversion to athletics
was outlined to the Committee in April 1999(QQ 446-459 of the
Minutes of Evidence)[1].
The cost of conversion was also outlined £15 million to£20
million and it was also made clear that it was agreed that the
conversion costs would be funded by the event owner, ie UK Athletics,
or the IAAF or the Olympics.
6.9 It was recognised in April 1999, Q 459 of the Minutes
of Evidence refers1, that there is an inherent conflict between
the requirements of football/rugby league and athletics which
would result in design compromises for each sport. The final design
involves a degree of compromise for football/rugby league as well
as compromises for athletics in terms of sightliines. For athletics
the sightline compromise was agreed with Sport England and UK
Athletics.
6.10 The British Olympics Association and the Department
for Culture, Media and Sport formed the view in December 1999
that the proposed design would not produce a venue which would
be ideal for athletics.
6.11 The Secretary of State announced in December 1999
that an alternative venue would be sought for athletics and the
Lottery Funding Agreement would be amended to reflect the usage
of the Stadium for football and rugby league together with a repayment
of grant of £20 million.
6.12 Discussions in relation to amending the Lottery
Funding Agreement were progresssing at the time of drafting the
memorandum.
6.13 As athletics will now not take place at the National
Stadium there will be no requirement for awarm-up track. In April
1999 the warm-up track was estimated to cost £12 million
and it had previously been agreed that the provision of a warm-up
track was not part of the National Stadium project and Wembley
National Stadium Limited were not responsible in any way for the
provision of the warm-up track (QQ 439-443 of the Minutes of Evidence
refer)1.
7. SUMMARY
7.1 Since acquiring the Stadium on 15 March 1999 and
presenting evidence to the Culture, Media and Sport Committee
on 15 April 1999, Wembley National Stadium has:
— Developed a world class design;
— Not changed the strategic design and operational philosophy;
— Satisfied all the Lottery Funding Agreement obligations;
— Submitted a full detailed planning application;
— Maintained the devlopment timetable; and
— Enhanced and refined the business plan and funding
strategy.
7.2 Although there are still a number of challenges
facing Wembley National Stadium Limited, it is the Company's view
that there are no insurmountable obstacles and the best Stadium
in the world will be open at Wembley by 2003.
January 2000
1
HC (1998-99) 124-II. Back
| 
