Stadium Redevelopments

[Bradesmaen]

What is it with UK stadiums and making their roofs in the way of the big screen? Arsenal has the same problem... Convex not concave you ******ed architects. No surprise it was done by populous who somehow keep getting work despite their boring, bland and quite dumb designs.

 

[ADL9798]

RIP Spurs.

 

[jd2010]

Doctor Gero I thought you said they were ahead of where they wanted to be with the debt levels on the stadium?

 

[chef]

How much extra is the club hoping to make a season with this new stadium?

 

[jd2010]

How much extra is the club hoping to make a season with this new stadium?

100m from matchday revenues + whatever the naming rights is

 

[jd2010]

Pays for itself pretty quickly.

Assuming costs levels are maintained (knowing Levy they could improve). We currently have 300m in turnover and get a 56m profit (just over 18% of turnover). That turnover in the new stadium will be about 425m with an 18% profit margin we'd be making 76.5m profit a year. So just under 8 years the profits would cover the 600m in debt.

Those figures are before player trading too so a few sell high buy low windows and that will be paid off within 5 years. Also would get paid quicker if Levy lowered his 6m a year salary!

 

[Zidane98]

A new stadium is not going to bring instant success and any Spurs fan that thinks it is is simply deluded.

It is a long term investment. Arsenal have only been seeing the financial benefits of their stadium over the last 5 years. They were very lucky that they had Wenger who was able to constantly secure CL football while nearly always making a profit on transfers right up until 2013. Spurs new stadium will hurt initially financially but will set them up well in the long run 5-10 years down the track.

 

[jd2010]

Levy has said our pre move in profits should reduce the amount of time taken to get to that spot. I just hope he isn't chairmen long enough to realise this!

 

[Zidane98]

Levy has said our pre move in profits should reduce the amount of time taken to get to that spot. I just hope he isn't chairmen long enough to realise this!

Sounds like there's been massive cost overruns if the further financing rumours are true.

What you need is a trillionaire to buy the club and clear the 600m pound debt. You'd be in a great position in that case !!

 

[ADL9798]

How much extra is the club hoping to make a season with this new stadium?

100m from matchday revenues + whatever the naming rights is

I think that's pretty ambitious JD.

See below most recent reports of annual match day revenues & stadium size among top 6 clubs for comparison:
United: 75,000 - £108m
Arsenal: 60,000 - £100m
Liverpool (New): 55,000 - £74m
Liverpool (Old): 45,000 - £62m
Chelsea: 42,000 - £66m
City: 55,000 - £52m
Spurs (Old) - 36,000 - £45m
Spurs (New) - 62,000 - £145m??

There'll be uplift in matchday revenue sure, but I can't see WHL becoming the most lucrative football stadium on the planet.

In any case, matchday revenue constitutes less than 20% of overall revenue for most clubs, relatively speaking it's small fry, with broadcast and commercial revenue making up the vast majority of a club's income.
The latter is where Spurs need to make significant inroads if they're going to make up ground on the rest of the top 6.

Commercial revenue for the PL top 6:
United - £280m
City - £198m
Chelsea - £140m
Liverpool - £139m
Arsenal - £117m
Spurs - £72m

How do you enhance your brand to attract higher value sponsorship deals? Most companies will peg a prospective club's value based on global # of supporters, & winning trophies + associated exposure. The City project aside as it's an outlier, there's no easy way up.

 

[SM]

100m from matchday revenues + whatever the naming rights is

I would think that's total, mate, not on top of current earnings.

 

[jd2010]

https://www.theguardian.com/football/2018/jun/06/premier-league-finances-club-guide-2016-17

I based it off the figures in the Guardian article and used Arsenal's amount as the base of what the new stadium would generate. Gate and match-day income to me doesn't include naming rights. Would have thought that would be in their Commercial figures

60k seat stadium with overpriced London tickets = 100m for Arsenal
62k seat stadium with overpriced London tickets = 100m for Spurs

 

[jd2010]

Our ticket prices in the new stadium were released and they are up their with Arsenal's across the board. Match attendance figures are the variable that could bring that under 100m

 

[Zidane98]

Our ticket prices in the new stadium were released and they are up their with Arsenal's across the board. Match attendance figures are the variable that could bring that under 100m

So what were the matchday revenues for old WHL?

36000 x £xxx ?

Not going to be an £100m increase in revenue either way.

 

[jd2010]

See below most recent reports of annual match day revenues & stadium size among top 6 clubs for comparison:
United: 75,000 - £108m
Arsenal: 60,000 - £100m
Liverpool (New): 55,000 - £74m
Liverpool (Old): 45,000 - £62m
Chelsea: 42,000 - £66m
City: 55,000 - £52m
Spurs (Old) - 36,000 - £45m
Spurs (New) - 62,000 - £145m??

Kinda answered it yourself here.



Used the average of the Emirates and Stamford Bridge for Spurs 2 as they're the most like for like being in London.

 

[SM]

100m from matchday revenues + whatever the naming rights is

Chef asked how much extra, not total, and you said this.

 

[jd2010]

So what were the matchday revenues for old WHL?

36000 x £xxx ?

Not going to be an £100m increase in revenue either way.

It's a 55m increase.

26k extra in seating with a 30% increase in the cost of the ticket in the new stadium. If they kept prices flat with the old WHL it'd only be a 32m increase in revenue. But they've already increased the prices in the new stadium before we even could get in!

 

[jd2010]

Chef asked how much extra, not total, and you said this.

Ah yep it's increasing up to 100m + naming rights. Roughly 75m extra compared to the old WHL

 

[Zidane98]

It's a 55m increase.

26k extra in seating with a 30% increase in the cost of the ticket in the new stadium. If they kept prices flat with the old WHL it'd only be a 32m increase in revenue. But they've already increased the prices in the new stadium before we even could get in!

How much extra are the running costs compared to old WHL? The moveable pitch looks like it could be a maintenance hog.

 

[jd2010]

How much extra are the running costs compared to old WHL? The moveable pitch looks like it could be a maintenance hog.

Whatever the increase in the running costs are that would be offset by the extra non-footballing revenues brought in. The figures mentioned above are purely off our games there, I can't remember what the NFL deal is worth but they wouldn't be running that at break-even or a loss. Same goes with any concerts, conferences or events, it's all incremental profits because the old stadium couldn't hold anything like it.

 

[Art Vandelay_]

So what were the matchday revenues for old WHL?

36000 x £xxx ?

Not going to be an £100m increase in revenue either way.

When I get home I can find a close set of estimates. I posted them on the site somewhere. Can’t remember the figure.

 

[chef]

I guess the worry is the profits may be used to line pockets instead of being spent on transfers and wages.

 

[jd2010]

In 16/17 albeit off a slightly reduced capacity it was 45m.

100m - new matchday Revenue
10m - 2x nfl games
20m - naming rights eventually

About 85m up on the old stadium. Based on a 20% margin an extra 17m in profits a year

 

[jd2010]

I guess the worry is the profits may be used to line pockets instead of being spent on transfers and wages.

The increase in profits will go to the debt. Like I said levy should take a hit to his own salary if profits mean so much. But it’s just an investment for ENIC to eventually sell. They’ll try and wipe a decent chunk of the debt out through profits and the club becomes a very sellable investment

 

[Zidane98]

Whatever the increase in the running costs are that would be offset by the extra non-footballing revenues brought in. The figures mentioned above are purely off our games there, I can't remember what the NFL deal is worth but they wouldn't be running that at break-even or a loss. Same goes with any concerts, conferences or events, it's all incremental profits because the old stadium couldn't hold anything like it.

There's no doubt you'll be better off after interest payments but the stadium by itself will not enable Spurs to compete financially on the same level as other big EPL clubs.

The only way that can happen quickly is through a vanity project type set up like at City with an owner willing to spend unlimited amounts of capital and be prepared to wear losses that would pit a typical football club out of business in the short term.