diff --git a/src/objmem.cpp b/src/objmem.cpp
index 8f04dccfe81..153fcdf4b09 100644
--- a/src/objmem.cpp
+++ b/src/objmem.cpp
@@ -671,33 +671,59 @@ void addFlagPosition(FLAG_POSITION *psFlagPosToAdd)
 	apsFlagPosLists[psFlagPosToAdd->player] = psFlagPosToAdd;
 }
 
-/* Remove a Flag Position from the Lists */
-void removeFlagPosition(FLAG_POSITION *psDel)
+// Remove it from the list, but don't delete it!
+static bool removeFlagPositionFromList(FLAG_POSITION *psRemove)
 {
 	FLAG_POSITION		*psPrev = nullptr, *psCurr;
 
-	ASSERT_OR_RETURN(, psDel != nullptr, "Invalid Flag Position pointer");
+	ASSERT_OR_RETURN(false, psRemove != nullptr, "Invalid Flag Position pointer");
 
-	if (apsFlagPosLists[psDel->player] == psDel)
+	if (apsFlagPosLists[psRemove->player] == psRemove)
 	{
-		apsFlagPosLists[psDel->player] = apsFlagPosLists[psDel->player]->psNext;
-		free(psDel);
+		apsFlagPosLists[psRemove->player] = apsFlagPosLists[psRemove->player]->psNext;
+		return true;
 	}
 	else
 	{
-		for (psCurr = apsFlagPosLists[psDel->player]; (psCurr != psDel) &&
-		     (psCurr != nullptr); psCurr = psCurr->psNext)
+		for (psCurr = apsFlagPosLists[psRemove->player]; (psCurr != psRemove) &&
+			 (psCurr != nullptr); psCurr = psCurr->psNext)
 		{
 			psPrev = psCurr;
 		}
 		if (psCurr != nullptr)
 		{
 			psPrev->psNext = psCurr->psNext;
-			free(psCurr);
+			return true;
 		}
 	}
+
+	return false;
+}
+
+/* Remove a Flag Position from the Lists */
+void removeFlagPosition(FLAG_POSITION *psDel)
+{
+	ASSERT_OR_RETURN(, psDel != nullptr, "Invalid Flag Position pointer");
+
+	if (removeFlagPositionFromList(psDel))
+	{
+		free(psDel);
+	}
+	else
+	{
+		ASSERT(false, "Did not find flag position in expected list?");
+	}
 }
 
+/* Transfer a Flag Position to a new player */
+void transferFlagPositionToPlayer(FLAG_POSITION *psFlagPos, UDWORD originalPlayer, UDWORD newPlayer)
+{
+	ASSERT_OR_RETURN(, psFlagPos != nullptr, "Invalid Flag Position pointer");
+	ASSERT(originalPlayer == psFlagPos->player, "Unexpected originalPlayer (%" PRIu32 ") does not match current flagPos->player (%" PRIu32 ")", originalPlayer, psFlagPos->player);
+	ASSERT(removeFlagPositionFromList(psFlagPos), "Did not find flag position in expected list?");
+	psFlagPos->player = newPlayer;
+	addFlagPosition(psFlagPos);
+}
 
 // free all flag positions
 void freeAllFlagPositions()
diff --git a/src/objmem.h b/src/objmem.h
index a308b830213..9461650e6ce 100644
--- a/src/objmem.h
+++ b/src/objmem.h
@@ -97,6 +97,8 @@ bool createFlagPosition(FLAG_POSITION **ppsNew, UDWORD player);
 void addFlagPosition(FLAG_POSITION *psFlagPosToAdd);
 /* Remove a Flag Position from the Lists */
 void removeFlagPosition(FLAG_POSITION *psDel);
+/* Transfer a Flag Position to a new player */
+void transferFlagPositionToPlayer(FLAG_POSITION *psFlagPos, UDWORD originalPlayer, UDWORD newPlayer);
 // free all flag positions
 void freeAllFlagPositions();
 
diff --git a/src/structure.cpp b/src/structure.cpp
index 628a984a402..5807234b54e 100644
--- a/src/structure.cpp
+++ b/src/structure.cpp
@@ -2044,6 +2044,124 @@ static bool setFunctionality(STRUCTURE *psBuilding, STRUCTURE_TYPE functionType)
 	return true;
 }
 
+static bool transferFixupFunctionality(STRUCTURE *psBuilding, STRUCTURE_TYPE functionType, UDWORD priorPlayer)
+{
+	ASSERT_OR_RETURN(false, psBuilding != nullptr, "Invalid pointer");
+	CHECK_STRUCTURE(psBuilding);
+
+	switch (functionType)
+	{
+	case REF_FACTORY:
+	case REF_CYBORG_FACTORY:
+	case REF_VTOL_FACTORY:
+	case REF_RESEARCH:
+	case REF_POWER_GEN:
+	case REF_RESOURCE_EXTRACTOR:
+	case REF_REPAIR_FACILITY:
+	case REF_REARM_PAD:
+	case REF_WALL:
+	case REF_GATE:
+		// Structure should already have functionality
+		ASSERT_OR_RETURN(false, psBuilding->pFunctionality, "Structure does not already have functionality pointer?");
+		break;
+
+	default:
+		psBuilding->pFunctionality = nullptr;
+		break;
+	}
+
+	switch (functionType)
+	{
+	case REF_FACTORY:
+	case REF_CYBORG_FACTORY:
+	case REF_VTOL_FACTORY:
+		{
+			FACTORY *psFactory = &psBuilding->pFunctionality->factory;
+
+			// Reset factoryNumFlag for prior player
+			auto psAssemblyPoint = psFactory->psAssemblyPoint;
+			if (psAssemblyPoint != nullptr)
+			{
+				if (psAssemblyPoint->factoryInc < factoryNumFlag[priorPlayer][psAssemblyPoint->factoryType].size())
+				{
+					factoryNumFlag[priorPlayer][psAssemblyPoint->factoryType][psAssemblyPoint->factoryInc] = false;
+				}
+
+				//need to cancel the repositioning of the DP if selectedPlayer and currently moving
+				if (priorPlayer == selectedPlayer && psAssemblyPoint->selected)
+				{
+					cancelDeliveryRepos();
+				}
+			}
+
+			// Transfer / fix-up factory assembly point, and number
+			transferFlagPositionToPlayer(psFactory->psAssemblyPoint, priorPlayer, psBuilding->player);
+
+			switch (functionType)
+			{
+			case REF_FACTORY:
+				setFlagPositionInc(psBuilding->pFunctionality, psBuilding->player, FACTORY_FLAG);
+				break;
+			case REF_CYBORG_FACTORY:
+				setFlagPositionInc(psBuilding->pFunctionality, psBuilding->player, CYBORG_FLAG);
+				break;
+			case REF_VTOL_FACTORY:
+				setFlagPositionInc(psBuilding->pFunctionality, psBuilding->player, VTOL_FLAG);
+				break;
+			default:
+				ASSERT_OR_RETURN(false, false, "Invalid factory type");
+			}
+			break;
+		}
+	case REF_POWER_GEN:
+	case REF_HQ:
+	case REF_REARM_PAD:
+		{
+			break;
+		}
+	case REF_RESOURCE_EXTRACTOR:
+		{
+			RES_EXTRACTOR *psResExtracter = &psBuilding->pFunctionality->resourceExtractor;
+
+			// Make the structure inactive
+			psResExtracter->psPowerGen = nullptr;
+			break;
+		}
+	case REF_REPAIR_FACILITY:
+		{
+			REPAIR_FACILITY *psRepairFac = &psBuilding->pFunctionality->repairFacility;
+
+			// POSSIBLE TODO: Do something about the group? (Or can we just keep it?)
+
+			// Reset factoryNumFlag for prior player
+			auto psAssemblyPoint = psRepairFac->psDeliveryPoint;
+			if (psAssemblyPoint != nullptr)
+			{
+				if (psAssemblyPoint->factoryInc < factoryNumFlag[priorPlayer][psAssemblyPoint->factoryType].size())
+				{
+					factoryNumFlag[priorPlayer][psAssemblyPoint->factoryType][psAssemblyPoint->factoryInc] = false;
+				}
+
+				//need to cancel the repositioning of the DP if selectedPlayer and currently moving
+				if (priorPlayer == selectedPlayer && psAssemblyPoint->selected)
+				{
+					cancelDeliveryRepos();
+				}
+			}
+
+			// Transfer / fix-up factory assembly point, and number
+			transferFlagPositionToPlayer(psRepairFac->psDeliveryPoint, priorPlayer, psBuilding->player);
+
+			setFlagPositionInc(psBuilding->pFunctionality, psBuilding->player, REPAIR_FLAG);
+			break;
+		}
+	// Structure types without a FUNCTIONALITY
+	default:
+		break;
+	}
+
+	return true;
+}
 
 // Set the command droid that factory production should go to
 void assignFactoryCommandDroid(STRUCTURE *psStruct, DROID *psCommander)
@@ -6723,6 +6841,8 @@ STRUCTURE *giftSingleStructure(STRUCTURE *psStructure, UBYTE attackPlayer, bool
 				}
 			}
 
+			transferFixupFunctionality(psStructure, psStructure->pStructureType->type, originalPlayer);
+
 			if (psStructure->status == SS_BUILT)
 			{
 				buildingComplete(psStructure);