Wembley National Stadium Ltd (WNSL) could be forced into administration if the stadium is not finished by the end of March, its directors have warned.

Following WNSL’s £36m out-of-court settlement with contractor Multiplex, which settled all claims between the two on condition that the stadium was finished for next year’s FA Cup final in May, it is likely the project will be finished by that date.

However, the notes to the accounts warn that had an acceptable settlement not been reached WNSL could have gone into administration. It notes that this could happen if the stadium is not completed by spring.

The notes say: “The directors have prepared these accounts on a going concern basis. However, it is possible that … [this] may prove inappropriate because:

  • No satisfactory arrangement can be made with the contractor to settle any alleged claims
  • Any work milestones are not met
  • Or if operational completion does not take place prior to
31 March and the company is unable to renegotiate its banking facilities and covenants.

“If this proves to be the case, going concern assumption may not be appropriate … Given the above there exists material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern and, therefore, that it may be unable to realise its assets, including the carrying value of fixed assets, and discharge its liabilities in the normal course of business.”

The directors of WNSL say they are confident that, were it to become necessary, they could renegotiate loans with their banks. In practical terms, the FA is unlikely to allow WNSL to go bust. However, a further rescue package would be a blow to the reputation of the subsidiary’s directors, and might push the FA to hire outside contractors to run the stadium.