Skip to main content

The pluses and minuses of stadium rebuilds

Football stadiums remain unused for most of the year, so it makes sense for clubs to use them for other activities where possible, such as sporting events and music concerts, in order to boost match day income.

For example, Old Trafford is used for the annual Rugby Super League Grand Final, while Arsenal hosted Arctic Monkeys at the Emirates and Tottenham staged the World Heavyweight showdown between Anthony Joshua and Oleksandr Usyk.

In fact, Tottenham’s new stadium has been designed as a multi-use facility, leading to a 10-year deal with the NFL to stage American Football games, whereby Spurs apparently take all the catering and merchandising revenue.

Three key stadium expansions are:

  • Liverpool – third tier added to the Anfield Main Stand, adding 8,500 seats, increasing capacity to 53,000. Opened at start of 2016/17 season.
  • Manchester City – third tier added to the South Stand, adding 7,000 seats, increasing capacity to 55,000. Opened at start of 2015/16 season.
  • Tottenham Hotspur – the new stadium added 31,000 seats, increasing capacity from old White Hart Lane’s 32,000 to 63,000. Opened in April 2019 with the first full season in 2019/20.

The stadium expansion has boosted match day revenue at all three clubs. There were steep increases at Liverpool, up from £62m to £84m, and Manchester City, up from £43m to £57m, while Tottenham’s income has more than doubled from £45m to £95m.

Of course, the other side of the coin is that a club still has to pay for an expanded stadium in a number of ways, which we can see by looking at the impact on Tottenham’s accounts.

First of all, the cost of the new stadium was funded by financial debt, which has shot up to £853m, the highest in the Premier League.

In itself that is not a major issue, but Spurs do have to find the money for higher interest payments. Even though they were very smart in refinancing their debt at a very low 2.7% interest rate (with repayment terms extended to 2051), they still had to pay a chunky £22m in 2021/22.

Finally, there are additional costs in running a larger stadium, which have been reflected in Spurs’ other expenses rising to a new high of £120m.

Despite their financial challenges, Everton are progressing with work on their new 52,888 capacity stadium at Bramley-Moore Dock, even though it will cost as much as £760m according to Farhad Moshiri. Former chief executive Denise Barrett-Baxendale said, “It will boost and safeguard our ability to compete financially alongside this country’s football elite.”

Their city neighbours Liverpool are in the process of extending the Anfield Road Stand, adding 7,606 seats to take the capacity to 61,000, though the £80m development may be delayed after the main contractor, the Buckingham Group, filed a notice to appoint administrators.

Manchester City have recently received planning permission to expand the North Stand, adding 6,000 seats to increase the Etihad’s capacity to 61,000.

 

Comments

Popular posts from this blog

Wolves get raw deal from FFP

  I used to see a lifelong Wolves fan for lunch once a month.   He was approaching ninety, but still went to games.   Sadly he passed away the other week. As football finance guru Kieran Maguire has noted, Wolves continue to be constrained by financial fair play rules.  Radio 4 this morning described them as this year's 'crisis club' and the pessimists have certainly been piling in. Martin Samuel wrote sympathetically in the Sunday Times yesterday, saying that the Premier League drives talent away with regulatory red tape: 'Why could Al-Hilal sign Neves? Because Wolves needed the money. And why did Wolves need the money? Because the club had to comply with an artificial construct known as financial fair play. So Wolves are going skint, yes? No. There is no suggestion that Wolves are in financial trouble, only that they are failing to meet the rigours of FFP. Wolves’ owners appear to have the money to run the club, and invest in the club, and in fact came up with a pow

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

Charlton takeover approved

The long awaited takeover of Charlton Athletic by SE7 Partners from Thomas Sandgaard has been approved:  https://londonnewsonline.co.uk/se7-partners-obtain-efl-approval-for-charlton-athletic-takeover/ Charlton have had unhappy experiences with owners for over a decade, so how this works out will remain to be seen.  There is certainly potential there, but will it be realised? This interview with Charlie Methven gives detail not available elsewhere:  https://thecharltondossier.com/charlie-methven-on-the-record/