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New stadiums are driving an average 66 per cent increase in football clubs' turnover in their first season at their new homes according to research by Deloitte's Sport Business Group. The average 66 per cent increase by clubs excludes income from broadcasting rights and is underpinned by a 51 per cent increase in average attendances in the first season at the new ground. 25 new football stadia have been built in England since 1990 and eight Premier League clubs play in stadia built since the Premiership began. At least half of all Premiership clubs have plans for the redevelopment of their existing ground. However, investment has not been confined to the Premiership with over £500m of the £3bn total occurring in the Football League. The initial driver for development was the Taylor Report, but stadia developments are now influenced by the commercial advantages they bring. Apart from increased stadium capacity, more lucrative corporate hospitality space is usually made available. Changes in the seat mix and configuration allows more segmentation of fans and hence more effective marketing strategies to target fan categories. Catering and retail income streams can usually be enhanced and there is dedicated space for revenue diversification in such areas as conferences and exhibitions, health and fitness, and in some cases hotels.
However, new stadiums are not always successful. This is emphasised by the range of increased turnover from 19 per cent at Stoke City to 146 per cent at Middlesbrough. Deloitte warns that the 'new stadium effect' can quickly erode after one season, particularly if the club's performance on the pitch fails to live up to the expectations of its recent converts. In such cases, the 'feel good' factor associated with the move to a new stadium is quickly lost. Investment in the stadium has to be matched by investment in the team.
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