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SOL expansion

Kent Boy 2 said:
If it costs £250m, then does it make business sense?

CAPEX of that size and nature needs to pay for itself over 10 years (maximum) for it to make business sense. Borrowing £250m at 10% annual interest (a good rate for that level of borrowing) and paying it back over 10 years, means a total payment of just over £400m or £40m per year.

The rumours were always that extending the East & South stands would take the capacity from 48k to 66k, so let’s say an extra 18k seats. Would an extra 18k seats bring the club an extra £40m of annual revenue. Let’s say an extra 20 boxes at £500k each, and an extra 1,000 hospitality seats at £1k each. That leaves 17k seats to cover £29m of additional annual revenue, or an average of £1,700 per seat.

It doesn’t feel like it makes business sense to me.

And all of that ignores the fact that our Championship revenue peaked at £44m, so if we were relegated at some point, having to pay back £40m a year would completely cripple, possibly even bankrupt, the club.
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Good luck getting hospitality seats for 1k 😂
Bcb is 2.5 now and that's not even proper hospitality
 

I’m not against the extension but it’s not going to be quick. I suspect the club will closely monitor ticketing over the course of 26/27 and if they believe there is a genuine demand, you might see an extension by the start of 28/29
 
Wearson said:
Your middle paragraph would be the lie.
It makes business sense to do it as soon as possible.
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Personally our owners are data driven and if kld is here for the long term they will have made projections of revenue growth using varying scenarios and one of those will be expansion .They will also have done repayment projections of loans under best and worst case scenarios and if they conclude we can afford the repayments under all conditions they will go ahead with the expansion as its the sensible thing to do to grow the business. Watch this space as i think it will be announced (provided kld doesnt sell) within a year.
 
AndrewP said:
Aye, it's mental money to spend. I'm not entirely sure TS would have came regardless when Anfield was an option. She's got a dedicated set of fans and the big stadium artists are moving to residencies now.

Yeah, that's the figure they (seemingly) plucked out if thin air.

We're stuck in the Sausage Roll Era. We couldn't get Swifty on in our wildest dreams.
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I am not sure how long this stadium residency fad will last
 
SAFC1983 said:
If the East stand is going to be identical to the West Stand then everyone in the last 3 rows will be relocated to a section on new upper level. imho it would be grossly unfair to do it any other way

Or like said you'll end up in the tier below the away fans but that's kinda shit on you all.
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If i was a betting man i would bet that the east stand will not mirror the west stand and will eat up most of the budget of burwells price predictions mainly because they have the space to do it.It will be the corporate hub and lots of the oiks like me will be moved.

TBH Burwell is a flim flam man and i bet his wife wants a signed contract just to confirm he's put the bins out. I wouldn't take anything he says on a podcast or fan meeting seriously ,until proven otherwise and i really hope his ceo job is truly interim!
 
42 said:
Unless ive missed something but where has the £250m come from? Villas is £100m for a demolition & complete rebuild. Ours would be loads cheaper surely.
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Villa aren't demolishing and rebuilding the North Stand but renovating and expanding.
 
Mallard said:
I am not sure how long this stadium residency fad will last
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If you are of a level that fans will travel to see you in huge numbers, it makes much more financial sense to play a residency than a tour.
In terms of costs and travel times, it's a lot cheaper and easier to play 10 nights at one venue rather than 2 nights each at 5 different venues. Its only when travelling to different regions is going sell more tickets that touring is worth it.
 
Trauntrian said:
If you are of a level that fans will travel to see you in huge numbers, it makes much more financial sense to play a residency than a tour.
In terms of costs and travel times, it's a lot cheaper and easier to play 10 nights at one venue rather than 2 nights each at 5 different venues. Its only when travelling to different regions is going sell more tickets that touring is worth it.
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This, plus Wembley has double the capacity, or thereabouts. Much better infrastructure too.

Gigs are great when we can get them but we're never going to rival Wembley.
 
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