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Manchester United new stadium could unlock £26m boost for Sir Jim Ratcliffe
@Source: manchestereveningnews.co.uk
Manchester United’s new planned stadium could provide a big financial boost to the club in a few ways, despite the cost that will be incurred from building it. Last week saw the club launch their plans for a new 100,000-seater stadium at Old Trafford with conceptual images and models unveiled. It has previously been reported by the Manchester Evening News that the estimated cost of a new stadium stands at around £2billion. The new stadium is however expected to bring in increased matchday and commercial revenue. One of the ways it could make the club some more money is through a stadium sponsorship deal. Last year it was estimated by Kroll that the sponsorship rights for Old Trafford would be worth around $16.7 million per season (£12.9m). However, the building on a new stadium could see that value doubled, according to Kroll’s managing director Mike Weaver. “The value is about two times [more] for a new stadium than it is an old stadium,” he said, via Forbes . “It could be worth up to two times what we have in the report right now.” If that is the case, then the sponsorship rights for the new stadium could be worth around $33.4 million (£25.8m) per season. It would mean that it would be one of the most valuable naming rights deals in the world. According to Kroll the naming rights for Real Madrid’s Bernabau is at around $32.4 million (£25m), with Barcelona’s naming deal with Spotify for the Camp Nou valued at around $21.8 million (£16.8m) per season. Any potential sponsorship deal would be a big financial boost to United , especially around the Premier League ’s Profitability and Sustainability Rules (PSR) as they currently are. Under the current rules, clubs are not allowed to make more that a £105 million loss over a three-year rolling period, with deductions for things such as infrastructure and the Women’s team taking into account.
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