The Live Nation and Oak View Group-operated Cardiff Arena has seen costs increase by £100m and its completion date delayed by a year.
Due to spiralling inflation costs in construction, the price of building the 17,000-capacity indoor arena has risen to £280m and is now expected to open in 2026.
In 2020 Cardiff Council selected a Live Nation-led consortium, which includes Oak View Group (OVG), as the preferred developer for the arena, following a competitive tendering exercise.
Live Nation said it remains committed to the project and has secured board level approval to cover the costs. It said it will also work to reduce the level of cost increase through a review of the arena design and reconsideration of site infrastructure requirements.
The venue, which will replace the existing Motorpoint Arena (cap. 10,000), is expected to attract more than one million visitors and an estimated £100m into the local economy each year. The arena is part of a £500 million redevelopment project of the Cardiff Bay area.
It is expected that the final contract will be signed in July 2023 with a start on-site programmed for January 2024.