Would you want half the profit from your stadium?
And if you'll research ttnbd's explanation about the stadium and potential financing, you will see that it will pay for itself without a drastic drain on resources.
I don’t recall seeing any calculations proving that the new stadium will be profitable. It seems to have become an unquestioned mantra. Personally, I think it will be a drain on resources and we’ll be lucky if it pays for itself over 25 years. I can’t see it providing extra transfer money.
I’ve looked at it two ways. Firstly, by doing rough calculations. We will have large cash outflows for the first few years as we pay interest on interest (not just on capital) and when we have no income for the first 4 years. The additional spectators will only initially give about £15M per year (15,000 people per game x £40 x 25 games?). We expect interest alone to be over £30M per year. The plug is going to have to come from corporate, naming rights, etc.
Another way of looking at it is to consider Man United’s position as being the ultimate we can aim for. Their accounts show they make £50M more than us from “Matchday”. We won’t make £50M as:
1. They averaged 75,000 per game. Our finished stadium will be smaller (the interim stadium even smaller). And we won’t fill it on wet Wednesday nights…
2. They charged higher average prices. We discounted tickets for some games.
3. They have more experience and are better placed geographically for the corporate market.
Our interest cost is projected to be around £30M per year even if we stay within budget. Remember, iron ore and steel are still rising, we’ll no doubt have more expensive redesign costs, etc. Costs of £30M plus are uncomfortably close to revenues of £50M minus… And Arsenal, who charge more than both of us and have tapped the lucrative London corporate market, consider themselves a “selling club” now.
I wouldn’t be at all surprised if ground share rears its head at some time in the future as the only financial solution for both clubs. They may decide that half the losses are better than half the profits.
