New Kings Park Stadium

It just seems very rude to the fans like us. It’s hard to be exact but I expect twice the number would like to see them each week than can get in. So why not give them the opportunity by building a stadium twice the size? Then they’ll be twice the revenue from ticket sales, then additional cash from the club shop and programme sales. Executive boxes, bar and food sales...the list goes on. Social benefits to as people will be employed to build the new stadium. And they’ll be jobs for local people as more will be needed to work in a larger stadium.

Or has the decision been taken somewhere perhaps to stuff the needs of the fans as all that is chickenfeed compared to the tv income?
 
nimzo said:
It just seems very rude to the fans like us. It’s hard to be exact but I expect twice the number would like to see them each week than can get in. So why not give them the opportunity by building a stadium twice the size? Then they’ll be twice the revenue from ticket sales, then additional cash from the club shop and programme sales. Executive boxes, bar and food sales...the list goes on. Social benefits to as people will be employed to build the new stadium. And they’ll be jobs for local people as more will be needed to work in a larger stadium.

Or has the decision been taken somewhere perhaps to stuff the needs of the fans as all that is chickenfeed compared to the tv income?
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We get £5m a year in match day revenue. Double the stadium and it would be £10m. Except it wouldn’t as the overheads would be more too.

Even if we stick to £5m extra revenue, if a stadium costs £100m to build, it’d take 20 years to recoup the cost. Now if we could get some help from the council to stump up the cash then I’m sure we’d go for it. As that doesn’t seem to be an option then where is the money coming from? And please don’t say TV revenue as that’s needed to cover the wage bill and transfer budget required to stay in the PL.
 
Couldn’t agree more about constantly needing to reinvest the TV money in the squad. But, with respect, there are two flaws in the argument that it would take 20 years to recoup the cost of a new stadium. One makes expansion even more expensive, and the other improves return and thus reduces the break even point.

If you build a new ground you have to fund it in advance, so probably two years of no income at all followed by several years just servicing debt. So a £100 million stadium generating only £5 million of additional income would probably take 25/30 years to break even once you take the cost of borrowing into account.

On the other hand, a new stadium would certainly have a much higher proportion of executive boxes, corporate and premium seats. So actually, a 25,000 capacity stadium with, say, 36 executive boxes instead of 10/12, various corporate hospitality areas and 3,000 premium seats could probably treble the matchday revenue to £15 million, with the bonus that a larger more attractive stadium would also generate greater naming rights. So potentially a shorter payback time.

But even so, I guess the payback time would still be a minimum of 10/15 years and it takes a fantastic leap of faith to assume we can stay in the Premier League for that length of time.
 
Sorry Roger said:
But even so, I guess the payback time would still be a minimum of 10/15 years and it takes a fantastic leap of faith to assume we can stay in the Premier League for that length of time.
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Yes, this is of course assuming that we would not fill a larger stadium if we were not in the Premier League; probably an accurate assumption based on the past 20 years.
However, for some 'bigger' teams who can guarantee crowds of 20,000 no matter what league they're in, the calculus may be a bit different.
 
Aberdeens new stadium (currently under construction) is to cost £45 - £50 million. That's for a 20,000 all seater. They're also built new training facilities at a cost of £12 million which was funded by owners.

They are however netting £18 million from the sale of Pittodrie for housing.

Our turnover is nearly ten times theirs. No one is demanding a new stadium but there's absolutely no reason why the club couldn't have expanded the currently facilities in some way shape or form for a fraction of the cost of a new stadium. Regarding a new stadium, if we looked at Aberdeen as a template is it really that outrageous that the club might consider financing a new ground at some point bearing in mind the money sloshing around at this level ?
 
red_house said:
is it really that outrageous that the club might consider financing a new ground
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Would it be possible, or vaguely feasible for a third party to buy land and build a stadium and then rent it to the club ?

I mean, if a development company builds a block of flats in Southbourne, they don't live in it themselves they sell them on or rent them out and given the obscene amounts of money sloshing about it might be an option ?

Probably total bullocks but just a passing thought as I wait for the pub to open.
 
red_house said:
No one is demanding a new stadium but there's absolutely no reason why the club couldn't have expanded the currently facilities in some way shape or form for a fraction of the cost of a new stadium. Regarding a new stadium, if we looked at Aberdeen as a template is it really that outrageous that the club might consider financing a new ground at some point bearing in mind the money sloshing around at this level ?
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I'm not so sure that it could have been expanded at a fraction of the cost, and we still have to try to recoup that cost over the (very short) lifetime of the stadium. We did get the Ted Shed, so that was something, I also think if they'd known it would rumble on as long as it has that they might have done something. Pretty sure though we had council support pledged and talks about new stadium the summer we went up
 
It will be our 6th season in the PL soon.....I feel sure it comes down to....they dont think its a 'football town' ...and the crowds wont exceed 20,000 ...so the revenue wont be significant enough above what is taken now from all sources. Something along those lines!
 
BillMcgarrycherry said:
It will be our 6th season in the PL soon.....I feel sure it comes down to....they dont think its a 'football town' ...and the crowds wont exceed 20,000 ...so the revenue wont be significant enough above what is taken now from all sources. Something along those lines!
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6th season in the PL ? I'm not too sure about that.....and that is not a knee jerk reaction to today's result /performance.....los of teams in the lower half are beating each other. Look at our next 4 fixtures and we could easily be looking at 6 defeats on the trot. ...I'm not a bed wetter just being realistic :sorry:
 
tedisking said:
6th season in the PL ? I'm not too sure about that.....and that is not a knee jerk reaction to today's result /performance.....los of teams in the lower half are beating each other. Look at our next 4 fixtures and we could easily be looking at 6 defeats on the trot. ...I'm not a bed wetter just being realistic :sorry:
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If we all had negative thoughts.
I believe we can get 12 points from the next 6 games..
 
Tinpot Club said:
We get £5m a year in match day revenue. Double the stadium and it would be £10m. Except it wouldn’t as the overheads would be more too.

Even if we stick to £5m extra revenue, if a stadium costs £100m to build, it’d take 20 years to recoup the cost. Now if we could get some help from the council to stump up the cash then I’m sure we’d go for it. As that doesn’t seem to be an option then where is the money coming from? And please don’t say TV revenue as that’s needed to cover the wage bill and transfer budget required to stay in the PL.
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I don't think but I hope I'm wrong, anyone is going to give/lend us the money to build a new stadium, particularly if it's going to take so long recoup their losses, so I think we have to use a mixture of TV revenue and player sales. For some it's an option to stay as we are but unless we're going to end up back where we came from, I really don't think the club will allow that to happen. It's encouraging we're making a start on our multi million pound training facility and for that reason, I remain confident a new stadium will happen eventually.
 
bog_standard said:
I don't think but I hope I'm wrong, anyone is going to give/lend us the money to build a new stadium, particularly if it's going to take so long recoup their losses, so I think we have to use a mixture of TV revenue and player sales. For some it's an option to stay as we are but unless we're going to end up back where we came from, I really don't think the club will allow that to happen. It's encouraging we're making a start on our multi million pound training facility and for that reason, I remain confident a new stadium will happen eventually.
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Money can be recouped when Maxim moves on and sells the club. The asset gets sold as part of the deal.
 
RobTrent said:
Money can be recouped when Maxim moves on and sells the club. The asset gets sold as part of the deal.
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I entirely agree, money invested in infrastructure doesn't just get pored down the drain as some would have us believe.
 
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