WNSL to pay extra £35m in settlement

The deal, which would settle all claims between the parties and avoid a £150m legal battle, involves WNSL paying Multiplex an additional £30-40m. It is understood the client is admitting that its design changes affected the project’s timetable – which is a dramatic U-turn from its previous insistence that Multiplex had caused all delays.

The deal, brokered with the assistance of government troubleshooter Lord Carter, falls far short of the £320m Multiplex was rumoured to be seeking from WNSL, but will increase its contract price to about £490m. The total cost to the FA will rise to about £790m.

The sum is intended as a final settlement of all issues, including penalties charged to the contractor for delays, and will mean that WNSL works alongside Multiplex on site to complete the project. A source close to the deal confirmed the extra payment was contingent on the stadium being ready for the cup final next May.

It is understood that the FA, which has led negotiations on WNSL’s behalf, is talking to its banks to renegotiate loan terms. Building understands that the FA must find the sum from its existing budget, but is negotiating to delay repayments on loans that funded construction of the stadium.

It involves a dramatic u-turn from its insistence that Multiplex had caused all delays

Speculation is also mounting that Michael Cunnah, the FA chief executive, will be forced to leave his post when the dispute ends.

Details of the proposed settlement emerged after a last-minute decision to call off a court hearing last week. Multiplex and M&E contractor Honeywell have also postponed a three-day court hearing to try to settle a dispute over project costs through negotiation. Jane Ryland, a partner at law firm Cripps Harries Hall, said: “Now Multiplex has a clearer idea of its financial position it may be encouraged to settle other claims out of court.”

Multiplex and the FA declined to comment.