The Significance of a Stadium

I recently had the chance to take a tour of Real Madrid’s home at the Bernebau and this reminded me how important a stadium is to fans not just as a venue that can intimidate the opposition but also as a source of their identity with the club.

Everton's Stadium Troubles

The issue of a shared stadium for Liverpool and Everton is on the agenda again after Everton had their stadium plans turned down. But although it might make economic sense, it is unlikely to appeal to fans and will probably not get anywhere. Everton's plan to build a 50,000 capacity stadium at Kirkby on the outskirts of Liverpool was turned down by the government. The development would have involved Tesco and Communities Secretary John Denham decided that the scheme breached policy to discourage supermarket chains sucking business away from town centres. He took into account that the scheme could serve as a catalyst for regeneration in Kirkby. The decision pleased the Keep Everton In Our City campaign, but may leave Liverpool without a suitable venue should England succeed in securing the 2018 World Cup.

The news followed the publication of Everton's financial figures for the year ending 31 May. Boosted by an appearance in the FA Cup Final and a new marketing deal with online retailer Kitbag, Everton's turnover was up from £75.7m to £79.7m. The wage bill remained at about £45m, a quarter of that for Chelsea. Profit before player trading fell slightly from £6.8m to £6.2m. Goodison Park has a capacity of 40,000, but a tenth of those seats have such a restricted view they are rarely filled. Some 21,000 out of 40,000 seats have a pillar between them and the pitch. Everton has a big fan base with almost 27,000 season ticket holders, but space is so restricted that some corporate members are housed in a marquee in the car park. On a match day Everton takes £800,000 compared with £3.3m at Arsenal. Everton are 33 per cent behind the average league club in terms of income: five years ago it was 19 per cent. But even if fans' opposition to a shared stadium was overcome, it is doubtful whether Everton could afford half the £150m cost.

Ground sharing is more common on the European continent because stadiums are often built by municipal authorities who rent them out. However, even there the attractions are fading. Inter Milan are thinking of moving away from the San Siro which they shared with AC Milan since 1947. They think they would have better commercial opportunities in a stadium of their own. Roma, after years of sharing with Lazio, have announced plans to leave the Stadio Olimpico for a new ground, which although smaller, would have greater revenue potential. In Germany, Bayern Munich and 1860 Munich share the Allianz Arena which is lit up with different colours according to which team is playing at home. But everyone knows that Bayern are the senior partner and 1860 the poor relations. It's a scenario Everton would wish to avoid, but they are running out of options.

Scottish Clubs in Financial Trouble

It’s not been the best of times for Scottish clubs.   Scotland's top football clubs are carrying debt totalling nearly £100m. Rangers and Hearts owe about £30m each, Kilmarnock and Aberdeen approximately £9m each, Dundee United £6.6m and Hibernian £3.6m. Stephen Morrow, head of Sports Science studies at the University of Stirling, said, 'It is difficult to see, in the current trading model that Scottish football is in, how they can find a way to pay that off. That's not to say that can't manage that debt. They can look after the interest payments on it but unless something changes in the structure or the finances of those clubs - or something substantial changes in their trading environment - then all they will be doing is very, very slowly bringing the debt down.' He does not, however, expect to see a SPL club to enter administration in the immediate future. He also pointed out that the sums involved were relatively small compared to most business debts banks were dealing with.

Scottish football suffered a big blow after the Premiership effectively ruled out Celtic or Rangers ever joining the competition. The Old Firm have been eyeing Premiership membership as a possible escape route from their financial troubles for some time. However, Premiership clubs voted heavily against a proposal to admit them. There was a recognition that the political and regulatory challenges were likely to prove insurmountable, but also that the commercial value would not be that great. Although Celtic and Rangers enjoy huge support in Scotland and among expatriates, the consensus was that the commercial gains would be relatively small at a time when the league's emphasis is on expansion in growing global markets. Ralph Topping, the new chairman of the Scottish Premier League, has admitted that Scottish clubs lack a clear vision about their place in the world. The income of £16m from broadcasting and sponsorship rights generated through the SPL this season compares unfavourably with the £29.5m received by the bottom placed clubs in the English Premier League in 2007-8. Rangers are in acute financial trouble, having moved from a pre-tax profit of £7.2m in 2007-8 to a pre-tax loss of £12.7m. Scottish hopes may now reside in Uefa creating an Atlantic League for smaller European countries.

English Premier League Restructuring?

The Premiership had not ruled out the idea of a 28-club league split into two divisions with no promotion or relegation from the second tier. This controversial proposal, which would represent a move towards a more American style competition, finds little favour with fans but is to be explored over the next year. However, the idea of admitting a Dublin franchise into the league appears to have been dropped along with the Scottish proposal. This was originally mooted when it was suggested that Wimbledon could move to Dublin.

You can hear me each Friday evening between 5 and 6 on the Radio Scilly sports show at www.radioscilly.com The Isles of Scilly are the home to the smallest football league in the world where the chant ‘can we play you every week?’ has a real meaning. The Garrison Gunners and the Woolpack Wanderers meet every week at the Garrison Field with the same referee.

Wyn Grant is a regular contributor to Albion Road and also the publisher of footballeconomy.com, a website covering the business and economy of the game of football.