FA bill for Wembley could rise to £150m

The Football Association's direct funding towards the new Wembley is expected to rise by 50 per cent to around £150m to make the troubled project viable, sources close to the venture said yesterday. The news is likely to heighten concerns that the governing body is stretching itself financially.

"With the project so far down the line, most of football is firmly behind it," one insider said. "But you do wonder if the FA is mortgaging the future of the game on something it might not be able to afford, especially if its revenue drops off, which seems likely. If this were a new idea it would be dismissed as utter madness." An FA spokesman declined to discuss figures ahead of any announcement.

The "absolutely final green light" will be given in the next few days, when all the related contracts – from construction, catering, security to ticket sales – have been completely finalised. Up to 18, worth £20m-plus each, have undergone late touches.

A press conference at the FA's headquarters in Soho Square – early next week at the latest – will hear that the demolition of the old Wembley will start within weeks. The new 90,000-seat, £750m arena will take 39 months to build and should be finished by early 2006. The FA Cup final could be its first major fixture.

Funding will come from a £426m loan from the German financial house, West Deutsche Landesbank, plus £120m already given by Sport England. The new stadium will incorporate a temporary athletics track for major meetings, if necessary, a condition of the Sport England funding. There are no firm plans, yet, to actually stage athletics.

Other funds will come from the Greater London Authority. Credit Suisse First Boston, the investment bank, is also likely to take a small funding role as well as underwriting "premium" ticket sales.

The FA originally planned to invest £100m up front. It now seems likely to have find more to seal the deal. Some of the extra money could be contingency-based. If the stadium does not generate the predicted £70m-a-year income it may fail to be self-funding.