Talk of Manchester United moving out of Old Trafford and into a new 100,000-seater stadium has split opinion.
Stick or twist. Ineos have a colossal decision to make about Old Trafford which will be marked forever in the club’s history.
According to BBC Sport, Manchester United will decide whether to redevelop Old Trafford or build a new state-of-the-art stadium on a nearby plot of land by the end of 2024.
A taskforce that includes club legend Gary Neville and mayor of Manchester Andy Burnham has been set up to assess the options.
Old Trafford already has the biggest capacity of any club stadium in England but a new 100,000-seater venue would take it above Wembley Stadium.
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It is a decision that will have an enormous emotional impact on fans as well as a major financial impact on the club.
Expert explains finances behind new Man United stadium
The flaws of Old Trafford are evident. It was left to rot by the Glazers and now has a leaky roof and outdated features. Ultimately, it looks second-rate compared to new stadiums built by Tottenham and Everton.
Redeveloping the 74,310-capacity ground is still an option, but building a new stadium will likely be favoured by Sir Jim Ratcliffe – especially when he glances at the potential income.
GRV Media’s Head of Football Finance and Governance Content, Adam Williams, exclusively detailed just how much money a new stadium could generate.
“United earned £136m in matchday income over the last financial year, the highest of any club in the Premier League by some margin,” Williams said.
“When you consider that they’re doing that at a stadium that has been rightly pilloried for being in a state of disrepair, it outlines how high United’s matchday income ceiling would be at an expanded, revamped or rebuilt Old Trafford.
“Using a pro rata calculation, a 100,000-seater stadium would see matchday income rise to £181m. That’s almost £70m higher than any other club.
“In reality, ticket prices would rise on an aggregate basis, plus there would be greater emphasis on hospitality, catering and so on. So the true figure would quite easily surpass £200m – and that, in my view, is a very conservative estimate.”
Man United could sell naming rights of new stadium
Old Trafford has become a household name for any football fan – the iconic venue will always be remembered as the home of Manchester United. But what would the new stadium be called?
Well, one option is to sell the naming rights – a method used to boost the commercial income at a club at the cost of a sponsor-named ground such as Arsenal’s The Emirates and Manchester City’s Etihad Stadium.
“Then you have the commercial benefits,” Williams continued. “A recent report from Kroll estimated that Old Trafford’s naming rights are worth £13m per season.
“It’s not a given that they will go down the naming rights route – and it’s a saturated market at present, with West Ham, Everton and Spurs exploring deals.
“But at a new stadium, I think you can double that £13m figure. There are so many other commercial benefits too – branded suites, sponsor activations and so on.
“There’s the potential to host non-football events. Spurs earn around £5m after costs from concerts this summer. United can match that.
“You’re up to almost £220m there. The intangible benefits could, I think, be worth an extra £10m per season. That’s things like being able to collect more accurate data from supporters to be able to show to sponsors, as well as the broader brand benefits.
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“So you’re up to £230m there – that’s the revenue upshot. I think there is a case to say that this would be the single most transformative financial event in United’s history.
“There would obviously be greatly increased costs for running a new stadium, not to mention the astronomical debt burden it would place on a club who already owe more than £1bn, but that’s a separate issue for now.”
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