SOL expansion

[tynevalleyblackcat]

Thing i don't get is them cracking on with legends way while talk of expansion is in the air.

I appreciate it could all be moved but its an added ball ache and is bound to end up with some stones people have bought being broken or lost.

Makes me think either east stand is where it will be extended or its not something they are actively considering beyond reconfiguration of the stadium as is for more corporate seats.

Corporate don't want to be behind one goal normally.

 

[Wearson]

I'm not worried. I just don't think there's a world where they splash out £250m on stadium improvements.

They're smarter than that.

They won’t be splashing anything, it will be financed.

They are smarter than you.


It’s a race to the top, not the bottom.

 

[Sea to Shining Sea]

I suspect they're talking absolute nonsense.

The entire city centre of Sunderland has effectively been rebuilt or refitted in the last five year for less!

Must be pricing materials from the punters aisles in B and Q

 

[AndrewP]

They won’t be splashing anything, it will be financed.

They are smarter than you.


It’s a race to the top, not the bottom.

Ok mate.

The entire city centre of Sunderland has effectively been rebuilt or refitted in the last five year for less!

Must be pricing materials from the punters aisles in B and Q

They're really clever too. It's surprising.

 

[Sea to Shining Sea]

They won’t be splashing anything, it will be financed.

They are smarter than you.


It’s a race to the top, not the bottom.

Of course. But if they ever wanted to sell up, £250m is a canny liability for new owners to take on.

It just seems a very high figure in comparison to what other clubs currently redeveloping are spending. Mind, if they want to spend it and make the SoL the best stadium in the north of England, I’m all for it!

 

[ATTACK ATTACK ATTACK]

Spending income on players in an attempt to stay up and retain said income, like we did, isn't exactly the same thing.

You're not looking to sell part of the extension for a profit after a successful season either.

£250m spent on a stadium expansion is only going to be worth it financially if the outlay can be repaid in a reasonable period of time. I can't see any way of current ownership sanction such a move.

Did you ignore my post where I mentioned the match day revenue growth?

Thinking about it I'll add to it a bit more. If it was built tomorrow, it instantly adds value to the club if KLD then decided to sell next week so there's some return already so it's not just £250m lost. AI seems to suggest this but it could be pie in the sky and I'm nee finance expert but something that adds say a conservative £10m a year to the revenue has to be worth more than £10m extra on the buying price to a potential buyer.

Based on SAFC being valued at £400m, even a more conservative £10 million increase in matchday earnings injects £61 million in pure enterprise value into SAFC. Because matchday revenue is highly predictable (driven by season ticket renewals and locked-in corporate hospitality packages), football investors value these fixed stadium gains much higher than volatile performance-based prize money.

Having more seats means more match day going fans (not tourists) who probably spend more on merchandise and other SAFC related tat throughout the season, especially kids who have no problem getting to the game.

Having more income would make it 'easier' to improve the squad for rotation and looking at getting better results on the pitch. That in turn will then equate to more seasons in Europe, higher sponsorship deals, more TV money, more money from ads, more global exposure and all the other stuff that a team in the top half of Premier League attracts.

Hoy in the extra bit from concerts, rugby games, possibly England lasses and all the other stuff.

We currently bring in under £20m in match day revenue.

Someone suggested taking out a £250m loan at about £30m-£35m+ in repayments over 10 years. I don't see how the sums add up.

As I said, it's over £20m now given the extra 6,000 fans at higher ticket prices, but can you see how the sums may add up a bit better now and that £250m isn't a bad an amount to service now?

Of course. But if they ever wanted to sell up, £250m is a canny liability for new owners to take on.

It just seems a very high figure in comparison to what other clubs currently redeveloping are spending. Mind, if they want to spend it and make the SoL the best stadium in the north of England, I’m all for it!

See above plus it might not just be the expanding of 2 stands, it could be how much a whole stadium revamp could cost. It could well be done in stages with the 2 new upper tiers to get the increase in revenue up but then upgrade the rest of the ground after that.

 

[AndrewP]

Of course. But if they ever wanted to sell up, £250m is a canny liability for new owners to take on.

It just seems a very high figure in comparison to what other clubs currently redeveloping are spending. Mind, if they want to spend it and make the SoL the best stadium in the north of England, I’m all for it!

Don't worry. The magic money tree will be paying for it because they're smarter than everyone on here.

Absolutely zero risk to the club because nobody ever calls in debts and that when shit hits the fan.

 

[oddbod]

Think people are living in dreamland if they think the owners are going to spend £250m on an expansion. Never in a million years is that going to happen. Maybe if we have 5-10yrs sustained in the prem but at the moment it is delusional

In five years the cost will be 500 million!Personally I think the 250 million is for both the south and east stand ..they may start with the south and go from there....250 million is 1.5 years revenue so i think its doable and i predict if they are going to do it it will be announced within the next 18 months and if not i doubt they will ever do it!Im assuming last may you thought we would spend 150 million on players ?

It will all come down to the ambition of the clubs owners and if they want to make the club more sustainable and for that to happen we need more revenue and the easiest long term way to do that is by expansion... One thing is for sure expansion isnt "delusional" its just good business practice.

 

[AndrewP]

In five years the cost will be 500 million!

It'll be two trillion by then mate in safc made up rates.

 

[Elmers]

T

I’d love to know what plans and designs they have that’d cost them £250m!

It’s costing Villa less than half of that to effectively rebuild an entire stand and fit it out with trickier infrastructure modifications required.

that figure was more than likely plucked from fresh air based on Tottenhams and Everton’s cost. Waiting will mean huge extra costs with rising inflation. At the end of the day they are a lot more savvy than us lot, think we should just take a step back, wait and see.

 

[AndrewP]

It will all come down to the ambition of the clubs owners and if they want to make the club more sustainable and for that to happen we need more revenue and the easiest long term way to do that is by expansion.

Not really. It's would be very ambitious to spend £250 billion on something that generates an extra £15m a year, for example.

Obviously the figures are all a bit daft so who knows really?

T

that figure was more than likely plucked from fresh air based on Tottenhams and Everton’s cost. Waiting will mean huge extra costs with rising inflation. At the end of the day they are a lot more savvy than us lot, think we should just take a step back, wait and see.

The cost of extending our ground will be completely different to the cost of building theirs. It'll be a bit mental (and not very savvy) if they just plucked the figure from thin air. They probably did though.

 

[seaham ftm]

Well get the prices up for a start if that's the case.

I know someone that’s had one the last 5 years but has packed in this year due to not being able to afford the new higher prices so they are up.

 

[oddbod]

Not really. It's would be very ambitious to spend £250 billion on something that generates an extra £15m a year, for example.

Obviously the figures are all a bit daft so who knows really?

The cost of extending our ground will be completely different to the cost of building theirs. It'll be a bit mental (and not very savvy) if they just plucked the figure from thin air. They probably did though.

I thought the figures came from the club stating(rather nebulous statement with no detail from fans meeting ) "expansion could end up costing 250Milion"....adding 12000 is seats and all the sundries is not just about extra ticket revenue but more revenue from food,corporate ,and sundry sales,more people in the ground the more attracting more young supporters and on and on...

Im sure KLD could source a very good loan through his family connections with a 20 to 30 year payback and the resulting stadium would be a far greater revenue stream for the club over the long term.....one thing is for sure they will only do it if it makes financial sense and im not in a position to judge but lots of our competitor clubs are doing it and you have to ask why? and I hope we are willing to compete!

 

[AndrewP]

I thought the figures came from the club stating(rather nebulous statement with no detail from fans meting ) "expansion could end up costing 250Milion"....adding 12000 is seats and all the sundries is not just about extra ticket revenue but more revenue from food,corporate ,and sundry sales,more people in the ground the more attracting more young supporters and on and on...

Im sure KLD could source a very good loan through his family connections with a 20 to 30 year payback and the resulting stadium would be a far greater revenue stream for the club over the long term.....one thing is for sure they will only do it if it makes financial sense and im not in a position to judge but lots of our competitor clubs are doing it and you have to ask why? and I hope we are willing to compete!

Which of our competitor clubs have spent £250m extending their stadium?. How many of those had a 48k capacity already?

How much would the extra corporate revenue be worth? £250 (plus interest) would be a lot to recoup.

I think you're right though, they won't be spending it as it makes no sense.

 

[Elmers]

Not really. It's would be very ambitious to spend £250 billion on something that generates an extra £15m a year, for example.

Obviously the figures are all a bit daft so who knows really?

The cost of extending our ground will be completely different to the cost of building theirs. It'll be a bit mental (and not very savvy) if they just plucked the figure from thin air. They probably did though.

The initial cost of Spurs and Everton’s grounds were blown away by the final cost. Look at HS2 as an example, costing can’t be a definitive output in construction. There are so many determining outside influences that can come into play. That figure of 250 million could be factoring in worst case scenario’s and maybe costs appertaining to the timescale of any extension. You have to also take into account this couldn’t possibly start for two years and costs would be much higher than today’s cost, hence the figures mentioned.
.

 

[AndrewP]

The initial cost of Spurs and Everton’s grounds were blown away by the final cost. Look at HS2 as an example, costing can’t be a definitive output in construction. There are so many determining outside influences that can come into play. That figure of 250 million could be factoring in worst case scenario’s and maybe costs appertaining to the timescale of any extension. You have to also take into account this couldn’t possibly start for two years and costs would be much higher than today’s cost, hence the figures mentioned.
.

They may as well have said a billion, just in case it doesn't happen until 2067 then.

They made it up. It's about as truthful as them saying nobody has talked about selling any shares. They definitely seem competent and have done a great job, but we're not getting the full story at the moment imo.

 

[oddbod]

Which of our competitor clubs have spent £250m extending their stadium?. How many of those had a 48k capacity already?

How much would the extra corporate revenue be worth? £250 (plus interest) would be a lot to recoup.

I think you're right though, they won't be spending it as it makes no sense.

There are several clubs planning massive extensions to their grounds and improvements to their facilities ,villa leeds forrest (i never specified money mate)our facilities and clubs like leeds ,forrest ect were developed for a pie and a pint footy and are all being improved to bring them up to 2030 standards ...our ground is magnificent for watching footy but we ar far down the league for spend from each ticket sold ....I know leeds .forrests present expansion plans will only bring the gate up to around where we are now but i would bet for every ticket sold they will be getting more from it in terms of extra revenue from game sales than we will and if they had your mindset they wouldn't bother would they?

 

[Sea to Shining Sea]

Which of our competitor clubs have spent £250m extending their stadium?. How many of those had a 48k capacity already?

How much would the extra corporate revenue be worth? £250 (plus interest) would be a lot to recoup.

I think you're right though, they won't be spending it as it makes no sense.

Liverpool have spent about £200m adding 17000 seats and premium hospitality in a fairly complex residential rebuild area. Granted, some of it was done pre-Covid but that’s still £50m less for a bigger and more complex job.

It’s fantasy figures unless they’re planning doing what City are doing which is tantamount to a spaceX rocket launch

There are several clubs planning massive extensions to their grounds and improvements to their facilities ,villa leeds forrest (i never specified money mate)our facilities and clubs like leeds ,forrest ect were developed for a pie and a pint footy and are all being improved to bring them up to 2030 standards ...our ground is magnificent for watching footy but we ar far down the league for spend from each ticket sold ....I know leeds .forrests present expansion plans will only bring the gate up to around where we are now but i would bet for every ticket sold they will be getting more from it in terms of extra revenue from game sales than we will and if they had your mindset they wouldn't bother would they?

And that’s the point. None of those clubs are spending £250m on redevelopment. The number the club have provided is a fanciful figure.

 

[AndrewP]

You have to also take into account this couldn’t possibly start for two years and costs would be much higher than today’s cost, hence the figures mentioned.

Why, out of interest?

 

[Shotton axe man]

Which of our competitor clubs have spent £250m extending their stadium?. How many of those had a 48k capacity already?

How much would the extra corporate revenue be worth? £250 (plus interest) would be a lot to recoup.

I think you're right though, they won't be spending it as it makes no sense.

Villa park & elland road extensions are projected to cost 100-150 mill respectively. Most jobs run over and over budget it seems these days. If our proposed extension is designed with corporate at the forefront it would cost substantially more in fairness. If it’s designed for just extending the terraces that’s a different matter.