Finance guru: The ‘sun is shining’ on Nottingham Forest as £2m ‘gamble’ may lead to £600m payoff
Nottingham Forest are right to “make hay while the sun is shining” and use Premier League revenue to fund a stadium expansion project.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the plans to add 5,000 seats to the City Ground.
The BBC reported on 28 July that the Premier League new boys have been given the nod by local government for the £94million construction project.
Per Nottinghamshire Live on 21 July, Forest owner Evangelos Marinakis has already spent £2m on costs associated with the plans.
It is also claimed that analysts estimate that stadium revamp could be worth up to £600m for the local economy.
Forest will likely focus on corporate and hospitality seats to eke back their investment in the short term, claims Plumley.
“You have to make hay while the sun is shining,” the Sheffield Hallam University expert told Football Insider’s Adam Williams.
“You don’t know how long you are going to stay up, so you have to look at the bigger picture.
“There are always gambles with that as well. For me when I look at that cost, I’m asking what type of seats they are going to be.
“That’s almost £19,000 per seat. If that’s an average seat, it’s going to take a lot of years to get that return on the investment. It could be a really long-term play.
“Or, you’re going down the corporate hospitality route and maximising that investment more in the short term.
“In principle, it’s a positive for the club but you have to consider the cost, which is high for the number of seats.”
In other news, expert issues “massive” Nottingham Forest verdict as £12.7million deal agreed.