Finance guru: Aston Villa set for £10m-a-year boost amid ‘stadium naming rights’ claim
Aston Villa will rake in at least £9.5million more per season after their stadium expansion is complete – and a stadium naming rights deal could push that figure even further.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about Villa’s earning power at a revamped Villa Park.
The club announced that they are seeking planning permission to add 7,000 seats to Villa Park and upgrade the surrounding site last Tuesday (28 June).
That will take the capacity of the stadium to 50,000, and the move is widely regarded as a statement of intent from owners Wes Edens and Nassef Sawiris.
Birmingham Live reported on the day of the announcement that the revamp will cost around £100m.
Plumley analysed the numbers and predicted how long it will take for Villa to make a return on their investment.
“It’s not an exact science,” the Sheffield Hallam University expert told Football Insider’s Adam Williams.
“Like any stadium expansion, it’s a long-term project. But if we look at some crude numbers around it, the capacity and average ticket price, it will probably add on about £500,000 to Villa’s income per matchday.
“That is a conservative estimate because corporate sales might bulk that up. But if we use that as a benchmark, that will give you around £9.5m per season over the course of 19 games.
“If you times that up to £100m, it’s going to take about 10 years before they see a return on their investment.
“It might be a bit shorter than that in terms of hospitality and, dare I say it, stadium naming rights.
“That would make it return quicker, but either way I think it’s likely to take eight to 10 years before they are in profit here.”
In other news, Conor Hourihane undergoes Derby County medical today after quitting Aston Villa