Man United stadium plans hit deadlock over price deadlock of rail terminal site that has been priced at £400m.
Man United ‘Wembley of the North’ stadium plan hits the buffers.
Due to a dispute over the cost of the land required to start building on what Sir Jim Ratcliffe has dubbed “the Wembley of the North,” Manchester United’s plans to build a stadium with 100,000 seats next to Old Trafford are being delayed. The club wants to finish the Old Trafford Regeneration Project, which they say will boost the UK economy by £7.3 billion annually, by using the area as a rail freight terminal.
United has discussed purchasing the land with Freightliner, the haulage firm that owns and runs the port, but talks have stalled because of a pricing dispute.
Although it is said that Freightliner has indicated a desire to move from Trafford Park to the neighbouring town of St Helens, the company is asking for over £400 million for the land, while United values it at between £40 and £50 million. Initial talks are thought to have come to a standstill, and Ratcliffe has made it clear that United will not accept the asking price established by Freightliner’s parent firm, Brookfield.
According to a source, Freightliner “has United over a barrel.” Although it is not in a haste to move, the corporation is open to moving to a new location that has been suggested and would provide more train capacity. According to the club, Freightliner will only get what would be a substantial gain if they are prepared to lower the asking price.
Ratcliffe set the lofty goal of finishing what he called a five-year development by 2030 when he unveiled the Old Trafford master plan plans, created by Foster + Partners, in March. United had hoped to start building preparations by the end of this year, but the start date will be delayed if the Freightliner site cannot be secured.
At this point, United has three options: raise their offer, wait for Freightliner to reduce its expectations, or scale back the proposal to eliminate the need for the goods terminal site. A compulsory purchase order might also be issued by the newly formed Old Trafford Mayoral Development Corporation, which is chaired by Sebastian Coe. However, this would be vulnerable to court challenges and cause additional delays.