France renovating Stadiums for Euro2016 with UEFA in charge

I recently came across a detailed blog posting about the renovation of  French soccer stadiums for Euro2016. The first thing that leaped out at me was that the management was being outsourced and financed through UEFA. The second thing was that stadium sizes and age are much smaller and older in France than in the English, German, and Italian Leagues (Spain varies widely).

A section at the end of the blog post was quite intersting and I quoted it below with my emphasis added about the low % of revenue from match day activities:

“In particular, top French clubs such as Marseille or Lyon could bridge the gap with European powerhouses and become more competitive in the Champions’ League. There is still a long way to go, as “3 clubs (Real Madrid, Man U and Arsenal) generate more than €100m from matchday revenues. Each of these clubs’ matchday revenue equates to more than €3.5m from every home match they play” (Deloitte).

Moreover, English clubs benefit from a richer local market, hence 7 of them feature in the European matchday top 20. “Each club is able to charge relatively high ticket prices, whilst attracting average attendances second only to the Bundesliga, where high quality stadia helped to attract the world’s highest average league attendance of 41,800, 22% higher than the Premier League.

“4 of the 5 Money League clubs who did not make the matchday top 20 (AS Roma, Juventus, Lyon and Marseille) are progressing with stadium (re)developments. Such projects are vital as each club only generates between 8% and 18% of revenues from matchday activities. Whilst market factors, including location or demographics, may limit the actual growth potential, each club could realistically expect to significantly reduce the matchday revenue gap to the clubs above them” (Deloitte).

The stadia redevelopment programme for the EURO 2016 should benefit several regions, as the proposed venues spread all over France, with the exception of the north-west of the country, where political “no go” decisions were made in Nantes and Rennes by their respective mayors. In Strasbourg, priority was given to a €200m project including the construction of a new convention centre and a European business district.

However, some clubs will have part of their stadia financed by uncapped subsidies, which will create a competitive distortion. Thus, whereas the gap between top French clubs and their European competitors should be reduced, the modernization of facilities should widen the one existing between these same clubs and their national counterparts, and contribute to a less uncertain national championship.

My stadium audit along with pictorial evidence from global travel can be found:

This entry was posted on Sunday, June 26th, 2011 at 16:58 and is filed under Professional Soccer, Soccer Business. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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