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New Stadium Details And Discussions

coys200

Well-Known Member
May 22, 2017
8,436
17,403
@robMDK posting lots today. Seems itk from building side. Reckons handover on course for August 4th. Lots of stuff on his TL. Also backed up £40-50m for naming rights which I thought was fanciful. But if true is huge.
 

coys200

Well-Known Member
May 22, 2017
8,436
17,403
SSC filled in the missing seats in yellow ?
E7295BF7-93EB-4FA0-AADF-87B4B71A2820.jpeg
 

Saoirse

Well-Known Member
Aug 20, 2013
6,143
15,550
@robMDK posting lots today. Seems itk from building side. Reckons handover on course for August 4th. Lots of stuff on his TL. Also backed up £40-50m for naming rights which I thought was fanciful. But if true is huge.
£40-50m? That would be inconceivably low for the full value of a deal, but at the same time double or more what we're expecting per year - unless maybe it's also including a shirt sponsorship? In which case we're talking about the AIA Arena.
 

Saoirse

Well-Known Member
Aug 20, 2013
6,143
15,550
£40-50m a year.
If that's just for the stadium naming rights, I really really really hope he's right. But again that does sound just impossibly big. If it's a 20 year deal that would literally pay for the stadium.
 

coys200

Well-Known Member
May 22, 2017
8,436
17,403
If that's just for the stadium naming rights, I really really really hope he's right. But again that does sound just impossibly big. If it's a 20 year deal that would literally pay for the stadium.

Yup that figure would be huge. But seen it mentioned a few times and tbh in the big picture £15m would now seem like chicken feed. The PL international TV coverage has grown massively if you then add in NFL plus 16 other events and our stadium will be getting ALOT of TV time, therefore £40-50m could seem plausible. Ultimately we are selling an advertising slot for a year with 3 different focuses PL NFL and general entertainment. The NFL deal may have been much more about exposure in USA than the actual NFL. If a London franchise ever did happen our revenue could become ridiculous and pushing United type figures.
 

Lilbaz

Just call me Baz
Apr 1, 2005
41,363
74,893
Yup that figure would be huge. But seen it mentioned a few times and tbh in the big picture £15m would now seem like chicken feed. The PL international TV coverage has grown massively if you then add in NFL plus 16 other events and our stadium will be getting ALOT of TV time, therefore £40-50m could seem plausible. Ultimately we are selling an advertising slot for a year with 3 different focuses PL NFL and general entertainment. The NFL deal may have been much more about exposure in USA than the actual NFL. If a London franchise ever did happen our revenue could become ridiculous and pushing United type figures.

Ashley was asking for £300m to buy newcastle but couldn't get it. I'd be suprised if we got more than that for a naming rights sponsor. But what do i know?
 

LeParisien

Wrong about everything
Mar 5, 2018
3,212
8,169
I have no specialist knowledge but...

I’ll have another go. Assume cost of redevelopment is £1billion.

We have apparently already put £340m into it.

Running Total: £660m.

Average cost of a ticket is about £65 a game less VAT is £50. Should we subtract 30% for staffing and policing costs? Makes £35.
Average punter spends £15 on extras at game (although could be higher with corporate ??). Less vat is £12 divide by 3 to get profit is £4.

So £39 profit per person per game. Multiply by 60,000 and again by 25 games makes £58.5m. Now half that because at OWHL we had some revenue so the difference is about £30m extra.

That seems sensible as the slightly smaller Emirates makes £100m from match day revenue. Less VAT makes £80m. Policing costs do ALL London clubs combined are apparently only £6.7m so even Emirates likely to be less than £1m. So not a million miles off when other costs factored in...

If we have a guarantee of £400m from naming rights and NFL and concerts coming in over 10 years then that leaves £260.

Less the £200m from flats to be sold and that leaves £60m.

Which means two years stadium revenues should effectively pay off the stadium (!!)

I’m aware there are other costs to running a football club but there are many other revenue streams too and other windfalls we can expect to rise not included above e.g. increased commercial revenue + shirt sales etc. Also this is the additional costs and revenue the new stadium will provide as I halved the expected profit from matchdays.

This estimate really says that the stadium should have little to no impact on our ability to compete in the transfer market or wages, as the stadium pays for itself.

The large transfer kitty already being touted seems realistic!! In 3 or 4 years we could be a self sufficient club competing with big boys in transfer market !!!

Edit: if the stadium rights deal of £520m is correct (or anything above £460m) then match day revenue is irrelevant to these considerations as rights deal + housing (£200m) + money already put in (£340m) already covers full cost. Then we are minted from day 1...
 
Last edited:

spursfan77

Well-Known Member
Aug 13, 2005
46,680
104,956
@robMDK posting lots today. Seems itk from building side. Reckons handover on course for August 4th. Lots of stuff on his TL. Also backed up £40-50m for naming rights which I thought was fanciful. But if true is huge.

He’s making stuff up if you ask me. Two things tell me this. 1. He says there’s fines for contractors not finishing on time. That’s illegal and is covered in here. 2. Any involvement with AEG. Unless they are going to come back in to do any concerts etc they won’t be involved. They were only involved in the Olympic Stadium as part of a wider real estate partnership with us. Nothing more.
 

spids

Well-Known Member
Jul 19, 2015
6,647
27,841
Ashley was asking for £300m to buy newcastle but couldn't get it. I'd be suprised if we got more than that for a naming rights sponsor. But what do i know?

There is a big difference between buying a depressed, failing football club and taking on its debt (with no realistic way to make serious money) that has no global or European exposure, and spending a similar amount to get global exposure from sponsoring a sports stadium with a global audience for NFL, EPL football, and concerts.
 

Hoopspur

You have insufficient privileges to reply here!
Jun 28, 2012
6,332
9,703
I have no specialist knowledge but...

I’ll have another go. Assume cost of redevelopment is £1billion.

We have apparently already put £340m into it.

Running Total: £660m.

Average cost of a ticket is about £65 a game less VAT is £50. Should we subtract 30% for staffing and policing costs? Makes £35.
Average punter spends £15 on extras at game (although could be higher with corporate ??). Less vat is £12 divide by 3 to get profit is £4.

So £39 profit per person per game. Multiply by 60,000 and again by 25 games makes £58.5m. Now half that because at OWHL we had some revenue so the difference is about £30m extra.

That seems sensible as the slightly smaller Emirates makes £100m from match day revenue. Less VAT makes £80m. Policing costs do ALL London clubs combined are apparently only £6.7m so even Emirates likely to be less than £1m. So not a million miles off when other costs factored in...

If we have a guarantee of £400m from naming rights and NFL and concerts coming in over 10 years then that leaves £260.

Less the £200m from flats to be sold and that leaves £60m.

Which means two years stadium revenues should effectively pay off the stadium (!!)

I’m aware there are other costs to running a football club but there are many other revenue streams too and other windfalls we can expect to rise not included above e.g. increased commercial revenue + shirt sales etc. Also this is the additional costs and revenue the new stadium will provide as I halved the expected profit from matchdays.

This estimate really says that the stadium should have little to no impact on our ability to compete in the transfer market or wages, as the stadium pays for itself.

The large transfer kitty already being touted seems realistic!! In 3 or 4 years we could be a self sufficient club competing with big boys in transfer market !!!

Edit: if the stadium rights deal of £520m is correct (or anything above £460m) then match day revenue is irrelevant to these considerations as rights deal + housing (£200m) + money already put in (£340m) already covers full cost. Then we are minted from day 1...
I understand (and appreciate) your workings, but I have to say you are being super creative and in all likelihood probably way off. One way or the other. I can’t imagine 1 billion pounds of debt comes cheap either for example.
 

Hotspurious

Well-Known Member
Aug 29, 2016
518
2,072
There is a big difference between buying a depressed, failing football club and taking on its debt (with no realistic way to make serious money) that has no global or European exposure, and spending a similar amount to get global exposure from sponsoring a sports stadium with a global audience for NFL, EPL football, and concerts.
Although I agree with you general point, I think you undervalue the potential that Newcastle represent. Good sized stadium, fanatical supporters, little local competition, relatively iconic image....they have great potential if they get the right owners. If I was looking to do a ManCity/Chelsea, I would consider them and Villa.
 

LeParisien

Wrong about everything
Mar 5, 2018
3,212
8,169
I understand (and appreciate) your workings, but I have to say you are being super creative and in all likelihood probably way off. One way or the other. I can’t imagine 1 billion pounds of debt comes cheap either for example.
It’s a lot less than a billion pounds of debt. See this from a year ago: http://m.tottenhamhotspur.com/news/...uncement-new-stadium-scheme-financing-310517/

It seems to me that only £100m of debt had been acquired as of the end of May last year but the facility had been extended to be up to £400m which I assume is the maximum amount of debt. Libor +3% is not too shabby either.

I take your general point that interest payments are a not insignificant added cost. I also think the stadium rights are likely to be far less than mooted.

The general point though is that the stadium will not materially affect our day to day operations or hamper us in the transfer market the way it did with arsenal. In fact we’ll be on their level financially very quickly.
 

spids

Well-Known Member
Jul 19, 2015
6,647
27,841
Although I agree with you general point, I think you undervalue the potential that Newcastle represent. Good sized stadium, fanatical supporters, little local competition, relatively iconic image....they have great potential if they get the right owners. If I was looking to do a ManCity/Chelsea, I would consider them and Villa.


Yeah - if you spunk a half billion pounds on players with oil or laundered money. But if you want to *make* money then sponsoring us is a better bet than buying them.
 

LeSoupeKitchen

Well-Known Member
Aug 18, 2011
3,102
7,621
There seems to be a lot less chat aboit the roof being designed and built using special material for atmosphere. Was that all BS in the end?
 
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