The staggering amount Leeds United will earn from Elland Road rebuild
Yesterday at 01:39 PM
Leeds United are finally forging ahead with long-held plans to expand and improve Elland Road – and it could be one of the most transformative events in the club’s history.
The West Yorkshire stadium has been Leeds‘ home since 1919 and is widely seen as having one of the best atmospheres in the country if not in Europe.
The Elland Road faithful will therefore likely welcome news that the club plans to remain in situ for the foreseeable future although with a raised capacity and greater focus on the fan experience.
Since 49ers Enterprises, the investment arm of the San Francisco 49ers, first bought into the club in May 2018, talk of a revamp at LS11 has grown steadily louder.
Relegation to the Championship at the end of 2022-23 seemed to be put those ambitions on ice.
When Andrea Radrizzani was still at the helm in tandem with the 49ers, the ownership had stated that they would need to be in the Premier League three years before thinking about expansion.
However, while no timeframe has been given, the club are now ready to begin the first steps of rebuilding the stadium to accommodate some of the many Leeds fans who miss out every week.
As well as being transformative for fans, it also promises to be a game-changer for the club’s finances.
How much Leeds will earn at revamped Elland Road
Leeds have announced that they plan to take capacity at Elland Road from 37,890 to around, massively increasing the amount they can generate through the turnstiles.
A crude calculation taking into account Leeds’ matchday income of £29.9m in their last top flight season shows that a 53,000-seater stadium would be worth at least £41.8m to Leeds annually.
In reality, the true figure could be closer to £60m.
Inevitably, there will be a ticket price hike or at least an increase of more premium ticketing options offered, which will add several million to the total.
What’s more, the development will almost certainly include a greater focus on hospitality.
Some European clubs earn as much from hospitality as they do from regular match-going fans, so it is not unrealistic to expect that to generate another £5-8m.
Commercial opportunities will also supercharge the cash available to Leeds. Just look at the Tottenham Hotspur Stadium, which has helped Spurs triple their commercial income in just over five years.
The experience of the 49ers at the Levi’s Stadium gives Leeds fans some clue about what they might be in for, with the owners wanting to make matchdays as lucrative as possible.
Leeds have also hired two executives with experience in property development and construction, which further illustrates their laser focus on the Elland Road project.
How the extra cash will help Leeds
Leeds had to offload some of their best players in the summer in order to stay the hand of the EFL’s PSR (Profit and Sustainability Rules) enforcers.
And while those sales give them a good cushion, PSR is now a going concern for every ambitious club in the EFL and Premier League.
With a new system set to be implemented from next year that will cap Premier League clubs’ spending on wages, transfers and agent fees to 85 per cent of revenue, matchday income becomes even more weighty.
