Skip to main content

Now that the World Cup is over, what about the stadiums?

The organisation of the World Cup in Russia has attracted widespread praise. In particular, the newly built and refurbished stadiums were hailed as high quality venues worthy of the tournament. But the 'legacy' issue is always a difficult one. Stadiums can easily become white elephants or even if uses are found they may provoke controversy because of sweetheart deals that have to be offered to secure occupancy as in the case of West Ham United and the London Stadium. Greece had one of the worst experiences with its Olympic venues: Abandoned stadiums.

The predicament is particularly acute in Russia, where vast distances between host cities, a lack of a strong football tradition outside Moscow and St. Petersburg, and tight regional finances mean that local governments are using creative ways to keep their stadiums in use. Only five top flight teams are privately owned, while the local governments and state-run companies that own the rest struggle to fund their teams. Four of the stadiums used for the World Cup do not have top flight teams and need outside sponsors to fund a push for promotion.

World Cup expenses accounted for significant increases in several host provinces' net debt after 2012, including nearly all of Samar's.

Sochi built its stadium for the Winter Olympics and then converted it into a football stadium. The Black Sea city has been unable to support a football team. Zhemchuzhina, a leading side in the 1990s, went bankrupt in 2003, while FK Sochi lasted two seasons in lower divisions a decade later.

The city enlisted Boris Rotenberg, a childhood friend of Mr Putin's, who bought Dinamo St. Petersburg, a second division side, and moved it to Sochi where it will play as FK Sochi. A bigger move than that of Wimbledon to Milton Keynes.

Mr Rotenberg's older brother Arkady is Mr Putin's judo partner and became a billionaire after his friend became president through winning pipeline contracts for state monopoly Gazprom.

The stadiums will cost a lot to maintain. The mayor of Volgograd expects to spend Rbs350m a year keeping the stadium running, but hopes that more tourists will be attracted to come to the site of the Battle of Stalingrad as a result of the publicity during the World Cup.

Comments

Popular posts from this blog

Threat of financial calamity removed from Baggies

West Bromwich Albion had effectively been in decline ever since the club was sold to a Chinese consortium in August 2016, paying a figure north of £200m to buy former owner Jeremy Peace’s stake. Controlling shareholder Guochuan Lai’s ownership was fairly disastrous for the club, but his unloved tenure finally came to an end after Bilkul Football WBA, a company ultimately owned by Florida-based entrepreneur Shilen Patel and his father Dr Kiran Patel, acquired an 87.8% shareholding in West Bromwich Albion Group Limited, the parent company of West Bromwich Albion Football Club. This change in ownership was urgently required, due to the numerous financial problems facing West Brom, including growing high-interest debt and serious cash flow concerns, following years of no investment from the former owner. Indeed, West Brom’s auditors had already rung the alarm bell in the 2021/22 accounts when they cast doubt on the club’s ability to continue as a going concern without making player s

Gold standard ground boosts Tottenham's income

The gold standard in European football grounds is the Tottenham Hotspur stadium in north London, a £1bn construction project completed in 2019. Its impact on the club’s finances has become increasingly clear as the effects of the pandemic have faded. Previously, the average fan would spend less than £2 inside the ground on a typical match day, but now that figure is about £16, thanks to new facilities including the longest bar in Europe and an on-site microbrewery. Capacity has gone up from 36,000 at the club’s previous home of White Hart Lane to 62,000.  The new stadium — built on land adjacent to White Hart Lane — has opened the door to a broad range of other events that have helped to push commercial income up from €117mn in 2018 to €215mn in 2022. Last year, Tottenham hosted US singer Beyoncé for five nights on her global Renaissance tour, two NFL matches, as well as rugby games and heavyweight boxing bouts.  Money brought in from football has gone up too. Match day income is

Spurs to sell minority stake

Tottenham Hotspur is in talks to sell a minority stake in a deal that could value it at up to £3.75 billion and pave the way for Joe Lewis and his family to sever ties with the Premier League football club. Tottenham chairman Daniel Levy is seeking an investment that values the club at between £3.5 billion and £3.75 billion, including debt. While the terms of any deal have not been finalised, City sources expect Spurs to sell about 10 per cent. The club is being advised by bankers from Rothschild on the sale. Tottenham wants to raise fresh capital for new player signings and to help fund the development of an academy for its women’s team, as well as a 30-storey hotel next to its north London stadium. The financier Amanda Staveley, who brokered the deal for Saudi Arabia’s Public Investment Fund to take over Newcastle United, is understood to be among the parties to have expressed an interest in Tottenham. Staveley’s fund, PCP Capital Partners, has raised about £500 million to depl