Yesterday, Australian construction company Multiplex Ltd announced that its A$1.2 billion Wembley stadium project may lose the company money. It also announced that its founder, John Roberts, is stepping down as the company’s executive chairman.
Earlier this year, the company said that there were no chances of a profit on the stadium. Before that, it had told its investors that it would be profitable. The company claims that costs are “spiraling out of control”.
Shares in Multiplex have been suspended on the Sydney stock exchange and there were fears last night that the stadium will not be completed in time for next year’s FA Cup Final on May 13. The Football Association is discussing the possibility of returning to the Millennium Stadium in Cardiff. A delay would also cast doubt over Britain’s ability to stage the 2012 Olympics.
Supporters of the Olympic bid have been using the high-tech 90,000-seat stadium as proof that Britain can supply venues on time and on budget. The Government insisted last night that public money would not be used to bail out the project.
It seems that no problem is too big to keep this project from being finished. Investors are confident that its completion will take place by early next year.
“We’re obviously concerned as the rumours of problems have built,” said a source close to Wembley quoted by Guardian Unlimited. “Today and all the way through this they [Multiplex] have maintained a consistent line – they will be ready to hand over by the end of January 2006. We have contingency plans, so we can be sure that even if they were to go bust, will it stop us opening? No.”
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
