The Next Level - How Much Extra money the new Stadium will Generate

ebzrascal

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We currently have a Turnover of about £196 Million a year and I think that could close to double in the next five years.. So believe we will be competing in a similar financial level to the other top clubs very soon. I would expect Everton with their new stadium development to make a similar transformation to ourselves albeit at a lesser level.

Tottenham
Turnover 6th highest in League £196m, up from £181m in 2014
• Income Match-day income £41m; TV and broadcasting £91m; Commercial £60m; Uefa prize money £5m

Arsenal
Turnover 3rd highest in League £345m, up from £302m in 2014
• Income Gate and match-day income £100m; TV and broadcasting £125m; Retail £25m; Commercial £79m; Property development £15m; Player trading £0.8m

Liverpool
Turnover 5th highest in League £298m, up from £256m in 2014
• Income Gate and match-day income £59m; TV and broadcasting £123m; Commercial £116m

Man City
Turnover 2nd highest in League £352m, up from £347m in 2014
• Income Gate and match-day income £43m; TV and broadcasting, Uefa £33m; TV and broadcasting, other £103m; Commercial £173m

Man United
Turnover 1st in League £395m, down from £433m in 2014
• Income Gate and match-day income £91m; TV and broadcasting £108m; Commercial £197m

Everton
Turnover 8th highest in League £126m, up from £121m in 2014
• Income Gate and match-day income £18m; TV and broadcasting £82m; Sponsorship, advertising, merchandise £10m; Commercial £16m

Chelsea
Turnover 4th highest in League £319m, down from £324m in 2014
• Income Match-day income £71m; TV and broadcasting £136m; Commercial £113m
 

Lilbaz

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#2
The new stadium will probably generate an extra £50m a season. For the first couple of years we will probably use a significant portion of that paying off any high interest loans.

We already are paying off our loans though (i believe a £200m loan will be paid off by december).

It will be a few years before we see the full benefit. Hopefully with us doing well we can land a decent naming rights that should pay off a big chunk.
 

davidmatzdorf

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The increased turnover comes at a capital cost and a large proportion of that cost is met by borrowing money. Then we have to build the housing and the profits from that get used to reduce the debt and thus he debt servicing costs.

So the increased turnover is half the story. In the long run, it has the capability to transform our standing as a club, but it requires good management of the whole project and a hefty slab of good fortune with the housing market, exchange rates, inflation and interest rates. Not to mention Brexit and the weather...

Development is intrinsically risky. You can get everything right except your timing and still lose money.
 

Hoops

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The increased turnover comes at a capital cost and a large proportion of that cost is met by borrowing money. Then we have to build the housing and the profits from that get used to reduce the debt and thus he debt servicing costs.

So the increased turnover is half the story. In the long run, it has the capability to transform our standing as a club, but it requires good management of the whole project and a hefty slab of good fortune with the housing market, exchange rates, inflation and interest rates. Not to mention Brexit and the weather...

Development is intrinsically risky. You can get everything right except your timing and still lose money.
Were is the snooze emoticon when you need it?
 
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It's the NFL deal that is the wildcard that could see us become a much bigger financial power quickly. If there is a tacet deal for a European NFL franchise to be our tenants - it would be a game changer in terms of commercial possibilities.
 

Roynie

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It's the NFL deal that is the wildcard that could see us become a much bigger financial power quickly. If there is a tacet deal for a European NFL franchise to be our tenants - it would be a game changer in terms of commercial possibilities.
Agreed.

If we could put on a good show for the 2 NFL games and thereby eventually get an NFL tenant that could be a really money spinner. It would make a huge difference financially
 

philip

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#10
The new stadium will probably generate an extra £50m a season. For the first couple of years we will probably use a significant portion of that paying off any high interest loans.

We already are paying off our loans though (i believe a £200m loan will be paid off by december).

It will be a few years before we see the full benefit. Hopefully with us doing well we can land a decent naming rights that should pay off a big chunk.
Why should our new stadium generate less than Arsenal 's does?
 

thebenjamin

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#11
The main question for me is will the increased turnover enable us to increase our wage bill to around £200M per season.

We need to do that asap in order to keep our stars, and build on the squad we have. There's clearly a certain amount of goodwill from players like Hugo, Toby etc, regarding the club and particularly staying until they see in the new stadium. But those top players and obviously the likes of Dele will be getting offered double or triple what they can earn at Spurs to move. And eventually they're going to go and get it.

So to continue our upward curve, we absolutely must expand our wage bill in line with the clubs we're competing against.
 

robin09

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#13
A lot of the increased match day turnover, is dependant on the average ticket price sold. If we're doubling the capacity, I would expect the ticket prices to be reduced. It'll be interesting to see where Levy pitches it.

Getting the right balance will be crucial to keeping the stadium reasonably full, especially for a mid week game against Burnley.

Doubling the capacity, should more than double the concession and merchandise sales, when you take into account the improved food and drink options available. (Hopefully!)
 

RichieS

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A lot of the increased match day turnover, is dependant on the average ticket price sold. If we're doubling the capacity, I would expect the ticket prices to be reduced. It'll be interesting to see where Levy pitches it.

Getting the right balance will be crucial to keeping the stadium reasonably full, especially for a mid week game against Burnley.

Doubling the capacity, should more than double the concession and merchandise sales, when you take into account the improved food and drink options available. (Hopefully!)
If "expect" was the word you meant to use, I fear you are going to be sorely disappointed.
 

robin09

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#15
If "expect" was the word you meant to use, I fear you are going to be sorely disappointed.
We'll see. He's already experimented with much much lower prices in the Champions League at Wembley.

I don't think the demand will be there to fill 60k seats at current prices, for any game outside of the top 5 or so teams.

The question will be, how much value does Levy put on reaching capacity week in week out. I imagine he'll see 60k at a lower average price, as worthwhile over 40k given the potential concession sales the extra fans could still produce at the ground.
 
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#16
Doubling the capacity, should more than double the concession and merchandise sales, when you take into account the improved food and drink options available. (Hopefully!)
Improved food and drink? Why don't you wish for things that have some chance of materialising, like us winning the Champions League shortly.
Anyone that has been to Norwich away would know that good grub at football stadiums is possible, you just have to be bought by a famous cook from the telly. Russian oligarchs and Arab sheiks are better at attracting quality players though.
 

Lilbaz

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#17
Improved food and drink? Why don't you wish for things that have some chance of materialising, like us winning the Champions League shortly.
Anyone that has been to Norwich away would know that good grub at football stadiums is possible, you just have to be bought by a famous cook from the telly. Russian oligarchs and Arab sheiks are better at attracting quality players though.
From the sounds of it they really want matchday to be more than just about the game. Getting in earlier and leaving later. We will have our own micro brewery on site and a much bigger range of food to choose from. Hopefully it will be as good as it is made out to be at reasonable prices. They should know that it is better to make 20p a pint and sell six of them than it is to make 50p a pint but only sell one.
 

Drink!Drink!

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From the sounds of it they really want matchday to be more than just about the game. Getting in earlier and leaving later. We will have our own micro brewery on site and a much bigger range of food to choose from. Hopefully it will be as good as it is made out to be at reasonable prices. They should know that it is better to make 20p a pint and sell six of them than it is to make 50p a pint but only sell one.
Haha if we are all having six pints before the game then I have zero worries about the atmosphere