Stadium development key ahead of FFP – Deloitte
03 Aug 2011
Stadium development is set to become an important factor ahead of the introduction of UEFA’s new financial fair play (FFP) regulations, according to a new report from the Sports Business Group at Deloitte.
With the opening of Brighton & Hove Albion’s new stadium ahead of the new npower Championship season this weekend, English football has now seen 30 new club venues built across the Premier League and Football League since 1990. Over the past 20 years almost £3.5 billion has been invested in stadia and facilities in England according to Deloitte’s latest Annual Review of Football Finance.
This investment has not only been about increasing capacity, which has grown by around 20% over the last 20 years and has increased by 3.3 million to 42.9 million across the top 92 professional clubs in the past decade, but has also seen an enhancement in the quality of facilities and improvements in the matchday experience. Premier League newcomer Swansea City has seen a 58% increase in attendance levels following its move to the Liberty Stadium in 2005, while Bolton Wanderers generated over 40% of its non-broadcasting revenue in 2009-10 from a combination of hospitality, hotel and office facilities at its Reebok Stadium. Meanwhile, Arsenal has more than doubled the revenue the club generates from matchdays following its move to the Emirates Stadium in 2006 and in 2009-10 generated average revenue per match of £3.5 million.
Mark Roberts, senior manager in the Sports Business Group at Deloitte, said: “The importance of appreciating and maximising the opportunities that a stadium can offer to clubs should become even greater with the introduction of UEFA’s financial fair play regulations. The need to balance expenditure against revenue will encourage clubs and their owners to invest further in the development of their venue and/or the land which immediately surrounds it. Venue owners should focus on assessing and calculating the return on investment that the wide array of potential opportunities could deliver for their facility.”