Report: New stadium's are a cash cow

From the Echo

EVERTON and Liverpool will be heartened by findings that a move to a new stadium increases a club’s turnover by 66% on average in the first season – even before TV revenues.

New figures from the Sports Business Group at business adviser Deloitte show that revenue increases were mainly driven by a 51% increase in average attendances in the first season after a move.

Twenty-five new football stadia have been built in England since 1990 and eight clubs in the Premier League play in new grounds built since the league was formed. About £2.2bn has so far been spent on new grounds in England.

And at least half of all Premiership clubs have plans for further investment in new stadia or redevelopment of their existing ground.

Everton fans are currently voting on a proposed move to a new home in Kirkby and Liverpool FC plans to relocate to a site on nearby Stanley Park.

Among the benefits a new ground can reap are increased capacity, an enhanced live experience, more corporate hospitality income, enhanced opportunities to drive sales in catering and retail and the opportunity for non-matchday revenues from ventures such as conferences, hotels or exhibitions.

However, Mark Roberts, senior consultant in the Sports Business Group at Deloitte, added a note of caution, saying that although “the new stadium effect” can drive attendances by 51% at first, unless the momentum is maintained by the club’s on-the-pitch performance these gains can quickly disappear, particularly among recent ‘converts’ to following the team live.

He said: “Stadium development remains a hot topic for many clubs, but it is important they have a well-researched business plan that proves there is a genuine need for, and return on, investment in the stadium.

“Unfortunately, we have seen some clubs press ahead with stadium development plans without the evidence to substantiate the proposed development. In these cases development plans often tend to come unstuck when funding for the plans is sought, or, worse still, a white elephant is born.”


Much of this is undoubtedly due to an increase in the capacity - obviously if the reds start off with a 60,000 seater then already there will be 33% extra tickets available.  I think with newer facilities people also tend to find themselves arriving earlier - spending more time actually in the ground.