‘What are the legal risks on a stadium redevelopment?’

We’ve been invited to bid a redevelopment project at a historic football stadium. It is a project designed to maximise revenue, modernise facilities and retain the heritage. Please advise on the potential legal risks and how to mitigate them.

Many historic stadia sit within conservation areas or incorporate listed structures. This can prolong planning processes and prompt additional requirements, such as Heritage Impact Assessments or specialist structural surveys.

Projects such as Everton’s new stadium, where Grade II hydraulic towers sit on site, illustrate how design solutions may require compromise or additional land acquisition.

Acquiring neighbouring parcels can add cost, but often unlocks viable redevelopment options.

Early due diligence of the site and tailoring the construction contracts to address site-specific requirements essential to identify limitations, latent defects and any expiring limitation periods that may impact recovery against former consultants or contractors.

Adopting an appropriate project delivery method can significantly reduce risk. Stadium schemes frequently involve competing pressures: tight programmes, bespoke design elements, complex interfaces and intense media and commercial scrutiny.

Whether opting for design-and-build, construction management or management contracting, contractual clarity is crucial. Key provisions should cover the following, to ensure they rest with the appropriate party:

The Wembley Stadium project highlights the consequences of unclear drafting. In Multiplex v Honeywell, a dispute arose over extension of time provisions and whether delays set “time at large”. The case illustrates the commercial uncertainty that arises when mechanisms for instructions, variations and time adjustment are incomplete.

Appointing a suitably experienced and qualified professional team, with the requisite experience in stadium projects, can also help mitigate legal risks as it provides access to appropriate advice throughout the life cycle of the project. 

It is also important to ensure that legal risks are addressed not only for the benefit of developer, but also to meet the expectations of third-party lenders/funders. Achieving this begins with preparing a suite of robustly drafted and “bankable” construction documents. Being proactive in preparing these can mitigate the risks of any delays associated with lender involvement.

Given the high-profile nature of stadium works, employers and funders often insist on MPCs. While MPCs can provide certainty and incentivise efficient delivery, unrealistic caps can expose contractors to insolvency, particularly where employers  issue late or ongoing design changes.

The Wembley redevelopment again provides a cautionary example: despite an agreed fixed price of £445m, downstream disputes on the steelwork packages generated disruption, delay and termination risks. MPCs should therefore include mechanisms for adjustment, and incentives for shared savings, to promote collaborative delivery.

Stadiums form part of the cultural fabric of their communities. Transparent communication with local residents, fans, local authorities and businesses is a worthwhile investment. 

Leeds United’s redevelopment of Elland Road demonstrates the power of early engagement: extensive public consultation resulted in 98% support and better alignment of transport, infrastructure and commercial goals, all of which should be reflected in the legal documentation.

This reduces risk of delays caused by objections from local communities and accelerates statutory approvals.

Modern stadium redevelopments must now demonstrate meaningful progress against ESG and sustainability objectives, set out by FIFA.

This encompasses low-carbon materials, efficient energy systems, biodiversity net gain and sustainable transport planning. These measures not only assist with planning approval, they also reduce lifecycle costs and enhance the long-term asset value. Bespoke clauses addressing concerns around discharging net zero obligations are becoming increasingly common. 

If drafted correctly, such clauses provide a clear benefit to all stakeholders. However, if the drafting gives rise to uncertainty as to what the contractor is obliged to deliver, it can give rise to disputes which can result in delays to the progress of the works.

Redeveloping a historic stadium will be a high-profile and potentially exciting project, but only if the legal risks, together with any commercial and technical risks, are identified early and addressed holistically.

Lessons from global stadium projects show that success depends on rigorous due diligence, clear contractual frameworks, careful cost control, proactive stakeholder engagement and genuine commitment to sustainable delivery. With these steps, the project can maximise revenue while preserving the character and legacy that supporters cherish.

Stephen McGuigan is an associate in the infrastructure, construction and energy team at law firm, DWF.