IMG to investigate ways of funding project

One of the private-sector partners in the abandoned Eircom Park venture is to look at financing the proposed Stadium Ireland project.

International Management Group (IMG), the sports and marketing agency founded by Mr Mark McCormack, said it would seek information on Stadium Ireland when expressions of interest in the project are invited this week.

"We await the announcement from the Government and will look into putting a group together then," said Mr Diarmuid Crowley, IMG's international vice president. It was "much to early to say" whether a project entirely financed by private-sector funds would be viable financially, he added.

Most observers judge that without some public financing, the stadium is unlikely to represent an attractive opportunity.

Ms Cathy Bryce, head of project finance with AIB, is among the more sceptical.

"Stadia are difficult things to fund. Even if you're building a straightforward stadium, you would need public financing. I think it needs a mixture," she said.

Mr Bryce highlighted the financing difficulties recently encountered by the Wembley redevelopment project in London, a venture which is publicly-funded to the tune of at least 25 per cent.

A City of London banker familiar with project finance agreed meanwhile that the issue "boils down to economics".

The banker, who did not wish to be named, said that financiers would be likely to seek guarantees that a certain number of sporting fixtures or other entertainment events would be held at the stadium before considering the commitment of funds. "It's not a wholly ludicrous idea," he added.

Other informed commentators said that a privately-financed stadium would only really become attractive if it could be guaranteed Government support in areas such as planning and infrastructure.