Geneva stadium is on the verge of bankruptcy

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The football stadium earmarked to host matches at the 2008 European Championship is on the verge of bankruptcy, according to its owners. The statecontrolled Foundation for the Stade de Geneve has announced that it was preparing to go into liquidation with bankruptcy set to follow.

Built at a cost of US$91m, the stadium has run up debts of almost US$8m, caused largely by the collapse of its main tenants, Servette Geneva FC, in February. The stadium's fate was apparently sealed in April when Geneva's citizens voted against a rescue package involving public and private money. It is now expected that the ground will pass into the hands of the construction company that built it, who could then auction the ground off to recover its losses.

Euro 2008 spokesman Wolfgang Eichler told media he could not yet comment on any possible impact on the tournament. Switzerland, which is due to co-host the 2008 tournament with neighboring Austria, has also faced problems with the new stadium it promised to deliver in Zurich. Plans to rebuild Grasshoppers Zurich's Hardturm stadium in time for the tournament were following opposition by environmentalists and residential groups. FC Zurich's Letzigrund stadium has now been put forward as an alternative solution, with the ground set to be rebuilt and upgraded temporarily for the duration of Euro 2008.