Deloitte study reveals initial burst for new stadiums

New stadium openings throughout England have resulted in an average of 66 percent increase in turnover through the first season claims a study from accountancy firm Deloitte.

The figures used start at 1990 and comprise the top two levels of English football. There have been 25 new stadiums built since that time. Figures for Leicester City and Coventry City were not available.

The span has gone from 19 percent for Stoke City to 146 percent for Middlesbrough. Deloitte saw attendance jumps of 51 percent at clubs with new stadiums. But the firm stressed that, to keep the increase steady over time, clubs needed more than new stadiums; they needed positive on-the-pitch results.

"Total stadia investment by English clubs since 1992/93 is now well into its third billion with £2.2 billion spent up to the end of the 2005-2006 season," said Mark Roberts, senior consultant in the Sports Business Group at Deloitte.

Approximately GBP 500 million has been spent by clubs not in the top flight.

Another drawback was a rush of clubs moving ahead with new grounds even though there wasn't enough evidence to support that it would be a sound move financially.

"Unfortunately, we have seen some clubs press ahead with stadium development plans without the evidence to substantiate the proposed development," Roberts said. "In these cases, development plans often tend to come unstuck when funding for the plans is sought, or, worse still, a white elephant is born."

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.