The Unpredictability of New Stadiums

Stadiums or stadia are an important part of any club’s identity. Somewhere to call home, somewhere to roar with the brothers and sisters who share the same passion and enthusiasm for the club you support.

With the money that floods into the Premier League and some fixed amounts for certain league positions means clubs are able to invest in their stadiums and even fund new ones.

In a sport that is run nowadays by accountants, business men and financial analysts so in that respect stadiums are now treated like assets. Not necessarily expenses but long-term assets and if there is sustainability within the top division there is opportunity to grow.

Success for most clubs for the various Premier League club chiefs is very much different from each other. Nevertheless, once they feel their level of success can be attained they’ll look for ways to maximise income.

Now of course the easiest way would be to offload ‘’expendable’’ members of the playing staff who hold value. In terms of a club’s evolution they will look to expand either the training facility or if possible the stadium.

Stadium expansion or constructing new stadiums has obvious immediate benefits. More seats mean more people and more money coming in on a match day.

However, undertaking a project of this size could mean clubs face the potential of being set back for a significant period of time and therefore the amount of money available for transfers could be significantly reduced.

With any investment there is going to be an element of risk attached to it. With stadiums you are essentially speculating that your current prize money intake will either remain the same or grow which would be able to pay off the costs with stability.

So, team performances are what these decision makers are banking on to ensure the team can continue to evolve on the pitch and the club grows off the pitch also.

Unless you are the established elite sides who receive the lionshare of commercial, tv revenue and broadcast money, drastic changes to the stadium becomes a huge gamble.

Essentially the only cost that stadiums have truly is depreciation.

Arsenal:

Arguably the third biggest club in England. Premier League greats have represented Arsenal and they boast some rich domestic success as part of their history.

Highbury was and potentially is still the home where Arsenal had the best time in their history. With the gunners last Premier League trophy coming in the invincible season.

Their move to the Emirates in 2006 was with belief they would compete with Bayern Munich however the Kroenke family have been reluctant to match their rivals in terms of the quality of incoming players or spending power.

Since 2006, star names have often left Arsenal for pastures new and become domestic or European champions at either rival clubs or abroad. Arsenal on the pitch have struggled to live up to the promises the board gave off the pitch.

They couldn’t predict how hyper-inflated the transfer market would become and got ultimately left behind in terms of their development as a club.

It never has been harder for Arsenal to even get into Europe at all with the clubs who would’ve previously been considered ‘’mid-table’’ now showing ambition in the transfer market to achieve those European spots.

Tottenham Hotspur:

In contrast, North London rivals Tottenham managed to engineer a move to the now 62,850 capacity Tottenham Hotspur stadium from White Hart Lane.

They haven’t won a major trophy since 2008 but they do see themselves competing with the bigger clubs and receiving bigger commercial and broadcast deals

Tottenham were much smarter and manoeuvred the arts of accountancy with efficiency.

The idea was received more positively amongst spurs fans than the Emirates project amongst the Arsenal faithful. The project in its entirety cost £1 Billion and is a pioneer amongst all the other grounds as it has strictly contactless payments only.

At the time of planning and early construction Tottenham were very much in ascendency pushing for title challenges and regular participation in the UEFA Champions League.

On the surface, we were led to believe contrasting tales of woe relating to logistics such as delays, cost overruns, labour shortages and emergency loans.

This coupled with the fact that they kept a tight lid on player wages, not spending any money in consecutive windows and receiving premium fees for top talents meant Tottenham had more financial stability for the future.

The new home pitch is suitable for NFL, Rugby League & Union, concerts and boxing events all of which could contribute to paying off the debts incurred by the new stadium.

Following completion in April, a healthy sum was received from their participation in the 2019 Champions League final gathering in total €101,622,000.

Even if Spurs aren’t able to win trophies, staying competitive in the latter stages of competitions and earning money from the multiple events the stadium can host, they should be able to make steady steps to paying off the hefty debt.

West Ham United

Another London club this time on the East side. West Ham fans no doubt hold the Boelyn Ground but a vacancy following the Olympic games presented an opportunity for GSB to try and evolve their club.

The main concern amongst fans would be whether or not they could replicate the infamous atmosphere at Upton Park. Immediately upon moving in 2016 fans were very much distant to the action on the pitch.

The investment for the hammers is one of intent. As long-standing member of the Premier League this investment is symbolic for the club to adopt a big club mentality. Which would lead to more high-profile signings.

West Ham have a real opportunity to create one of the best football grounds in Europe but more attention needs to be shown towards the supporter experience. Despite increasing their attendance figures by 20,000.

The change of venue for West Ham is undoubtedly a sign of intent which may be bearing fruit as the time of writing during the 21/22 season they are set to embark on their second European campaign since moving to the London stadium.

Like Tottenham, West Ham were incredibly shrewd in financing this move agreeing to pay £2.5m for every 25 event days per year.

At the time of writing West Ham United have a real chance of upsetting the established sides who historically compete in Europe regularly.

The larger capacity stadium certainly makes them look the part now they have to back it up with big performances in the domestic league and challenge for domestic cups also in order to be successful on the pitch and sustain the costs of this investment.

Everton

Everton for years have always been viewed as a club with potential, but erratic moments in managerial appointments and erratic spending patterns in the transfer window have stunted any potential Everton may’ve had.

Nevertheless, they have been looking for new home for almost 25 years and Evertonian’s opportunity has arrived with construction beginning on the new £500m, 52,888 capacity Bramley-Moore Dock.

A new waterfront stadium has been well received by supporters who probably feel this moment has been long time coming. Everton Fan’s Forum were consulted which was vital for club officials making sure their identity remains intact with the new changes.

Whilst the estimated 3-year project is underway, I do think this is period where Everton have to make progress on the field and try and gain some stability within the top end of the Premier League table, pushing for European places and strong cup runs.

It’s fair to say they’ve been wasteful in the market at times since Farhad Moshiri became a majority shareholder but with a manager with pedigree and with something to prove may just be the right mix for Everton to progress prior to moving in the estimated 2024.

Round-up

The opportunity to expand or move to a new stadium undoubtedly brings unpredictability and pressure onto the team to match the ambitions above.

It is speculating in order to accumulate. However, these new stadiums have aspects that gather additional income in ways that the traditional existing grounds possibly can’t.

Prime example being Spurs’ multi-purpose venue and West Ham’s London stadium being an Olympic-level stadium.

Clubs nowadays have to be careful as to how the plans are presented to fans. Arsenal being prime example stating their goal to challenge Bayern Munich in 2006.

Since then Bayern have picked up 2 Champions League titles in two separate treble winning sides. Whilst Arsenal, haven’t won the Premier League or even made an appearance in a Champions League final.

They’re inability to maintain a hold of star names as they needed to fund the debt would’ve laid a blueprint for clubs who wish to expand, that they should be meticulous in looking at margins.

These kinds of investments can only be taken by teams who are stable in the highest division and looking upwards. Teams who consistently finish in the bottom half and flirt with relegation shouldn’t look to invest in new stadiums just yet.

You wouldn’t find this type of investment lower down the pyramid as its well-known attendances decrease the further you go down the pyramid.

Football is important to the UK’s economy in my opinion. Stadia now are more about commercial benefit and less consideration is given to fan experience.

The big clubs and ambitious clubs especially in the major cities now have to provide an innovative and unique element to stand out and be one of the best tourist attractions.