‘Let’s be clear': Why £100m North Stand isn’t Portsmouth’s silver bullet amid financial changes
A new North Stand has been heralded as a significant weapon for Pompey as new financial rules come into play. CEO Andy Cullen digs down on that scenario.
Andy Cullen played down talk a new North Stand will significantly improve Pompey’s position as football prepares for a new financial framework.
But the Blues chief executive promised the ambition to deliver the club’s vision for a new stand costing up to £100m remains in place.
Ticketing revenue from North Stand will be £2m per year
The expansion plans would see Fratton Park’s capacity grow by 5,000 seats, with the wait continuing over the outcome of a feasibility study for a new Fratton footbridge.
The stand would provide significant new income for the club, which is a focus as new Squad Cost Rules (SCR) in the Championship limits clubs to spending 85 per cent of their ‘allowable revenue’ on player, manager and agent costs.
Cullen acknowledged it’s important to look at growing revenue streams against that backdrop, with income from Pompey Health & Fitness Club counting towards that total and matchday income currently in a mid-table position in the Championship hierarchy.
But the Pompey CEO is adamant 5,000 new seats will generate around £2m per year, a relatively small return against the outlay for the stand.
Cullen is clear that doesn’t negate on the desire to deliver on the vision but he feels it has to happen at the ‘best time’, with the focus now on delivering on the pitch.
He said: ‘Let’s be clear, if we build 5,000 seats - and the ambition is clear we want to grow capacity and develop the stadium - the ticketing revenue from those seats will be £2m per year. So it doesn’t make a huge difference in terms of SCR.
‘What is important is we look to continue to grow all of our other revenue streams alongside that.
‘We can count the income generated and invested from building Pompey Health & Fitness Club - because it’s situated at the training ground it counts.
‘So there’s areas we’ve developed along with growing our matchday revenue which is important
‘That’s fine, as long as everyone understands the cost of building that stand will be between £80m and £100m - and you need enabling development to finance some of that. After that, there’s still a significant contribution to build that stand.
‘Now that is something we’re looking at how we do it and how we take it forward, but it’s not just a straightforward simple answer that you build a stand and all of your problems are solved.
‘There are other things we can do to continue to develop revenue streams, but do the sums (on seats).
‘If you look at the yields we get and then take off the VAT, take off the concession rates for juniors and over 64s, stewarding and all the other costs it works out about £2m more. So it’s only a small contribution.
‘I don’t want to be facetious, because it’s an ambition. We want to grow the capacity because we have the demand, but it’s about the best time to do it without getting away from our focus for investment in the first team.