England to leave home to make way for NFL franchise
Khan’s offer would release the FA from the burden of running and modernising the stadium
THE FA are on the verge of selling Wembley Stadium in an astonishing deal that could rise close to £1billion. As Sportsmail first revealed, Shahid Khan, billionaire owner of Fulham and the NFL’s Jacksonville Jaguars, tabled a formal offer that was discussed for the first time by the FA yesterday.
Khan, who is worth an estimated £5.2bn, told Sportsmail last night that a deal could be agreed within eight to 12 weeks, meaning he would be the new Wembley owner before the Community Shield in August.
He is prepared to pay close to £600million in cash and allow the FA to keep the Club Wembley debenture and hospitality business that is valued at around £350m.
Khan insisted to Sportsmail that Wembley will remain the ‘cradle of English football’.
While a deal has not yet been agreed, sources have told Sportsmail that the FA believe the offer is too good to turn down as it would enable them to pump as much as £500m into English grassroots football with a nationwide provision of new pitches.
Yesterday the FA confirmed they had received an offer, with chairman Greg Clarke conceding that a move to sell could face serious opposition. ‘I am well aware that it will be an emotive issue that will divide opinion,’ he said.
But this move is part of a strategy developed under the guidance of Clarke and chief executive Martin Glenn, who in 2016 hinted at the FA’s desire to see ‘everyone’ no more than ‘a 15-minute drive away from a high-quality pitch’. Glenn added: ‘Maybe we need to make a case for being a lot bolder. What if we could find a few hundred million?’
In January the FA said they would finish paying for Wembley by the end of 2024, 17 years after the 90,000-seater stadium was opened at a cost of £757m – £113m is still owed to stakeholders.
Khan’s offer would release the FA from the significant financial burden of running and eventually modernising the stadium. And the FA may be able to negotiate away some of the £113m debt, leaving more of the Pakistan-born American’s money available for grassroots projects. How much rent the FA would have to pay for England games will be a key point in any deal.
The FA will demand several conditions. Wembley will remain the home of English football as well as the governing body, although Khan would be able to sell sponsorship rights to the stadium. The current deal agreed by the FA with EE expires in 2020. Matches such as the FA Cup final, the English Football League play-off finals and Rugby League’s Challenge Cup final would remain at Wembley.
BUT England internationals in the autumn will have to move if Khan is successful in moving his NFL franchise to London. That said, the FA believe England fans would welcome more internationals being played in various venues, with one match ahead of the World Cup at Elland Road.
Khan has an agreement to stage one Jacksonville Jaguars game at Wembley every season but he is clearly pursuing the deal to buy Wembley with NFL expansion in the UK very much in mind.
Khan said: ‘Over the past several years, it became clearer to us and the FA that the idea of our purchase of Wembley Stadium made a lot of sense for all of us. Our commitment to the FA is we will own and operate Wembley with the care and respect it deserves, always being mindful that it is — and will continue to be — the home of England’s national teams.
‘Wembley will remain the cradle of English football supplemented with the NFL and other events.’
How that affects Chelsea, who have considered playing at Wembley for four years while Stamford Bridge is being redeveloped, and Tottenham, who have NFL games as a key part of their business plan for their new stadium, is unclear. Spurs have designed their new ground to incorporate a separate American football pitch and have NFL branding at the site, having agreed to stage two games each year between 2018 and 2027.
Yesterday senior figures at Spurs were relaxed about developments, while Chelsea insiders said it was not an immediate concern as they will not be looking for a temporary home until 2021 at the earliest.
Khan told Sportsmail: ‘This does not prevent a club, such as Spurs, playing at Wembley — quite the contrary. Chelsea are talking about building a new stadium and we’d welcome them.’
Khan sent a separate statement to Fulham fans, insisting he remained committed to developing the club. ‘This deal has nothing to do with Fulham,’ he said.
NFL vice-president Mark Waller welcomed the news. ‘We are very happy for Shad Khan and the Jacksonville Jaguars,’ he said. ‘The potential purchase of Wembley is a further powerful sign of their commitment to the UK and their vision to help us grow the sport. Having stadium options in London has always been critical to the NFL and, in tandem with our 10-year partnership with Tottenham, this new relationship would allow for even greater flexibility in scheduling future NFL games in London.’
There was a mixed response to the news. ‘If the money goes towards grass roots football … it could be a positive move,’ said broadcaster and former England captain Gary Lineker on Twitter.
The FA are no doubt bracing themselves for criticism but they will argue that they are unique among football’s governing bodies in owning their own stadium.
FA bosses can also point out that it was only in 1999 that they even came to own Wembley. It was then that the FA clinched a £103m deal to purchase the crumbling Twin Towers from Wembley PLC.
They will argue it enables them to cash in on their biggest asset while retaining Club Wembley, which is their biggest income stream after their television and sponsorship deals. And they will continue to profit from ticket revenue for England matches and other FA events, simply paying the new owner for use of the stadium.