Wembley chase for right cash result

THINK the unthinkable. England are turfed out of the World Cup after round one. They slide back to pre-Sven form, making them the butt of jokes and leaving corporate boxes at future internationals half-empty again.

Football fans will not want to countenance such failure, but for the banks queuing up to finance the Wembley project it is the disastrous scenario dominating their intricate forecasts for this business.

News that Germany's Westdeutsche Landesbank has joined the bid to help fund the stadium does not change the fact that to finance Wembley is to back the future popularity of football in this country - something no bank will be willing to do without watertight guarantees for the safety of its money.

It is hardly surprising that an opportunistic bank such as WestLB wants to lend £300m-odd to Wembley. But like the financiers that have gone before it, the German bank will demand it has some recourse to the Football Association should the worst happen.

The FA refuses to be guarantor for this lump of concrete. While acknowledging that most other businesses in its position would provide such undertakings, it believes that as a sports governing body it must not make such potentially crippling promises.

It is understood the FA has told the banks it will make certain 'capital commitments' to the project, but these will be structured so that Wembley remains ringfenced from its traditional business. However, much of the FA's hopes for striking a deal rest with the underwriting arrangement it has secured for the stadium's 16,500 premium seats. This is believed to guarantee about £25m of revenue over the 20-year life of the loan.

There is also the prospect of Wembley hosting a World Cup, European football championships, athletics and other profitable events not included in its revenue forecasts.

Sound familiar? That's because this is the point the FA reached in its negotiations with banks 18 months ago. True, it has cemented the seating deal and says it has added a few other attractions to its proposal.

But the core issues remain - and they do not include finding banks willing to negotiate the loan. These financial reasons, rather than historical ones, are why football lovers should draw little comfort from the Germans' involvement.

The dancer who takes quick steps to a deal