Saturday 30 April 2016

Importance the stadium For Club and Country

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A friend was stunned to see the greatness of the Camp Nou Stadium. Though the stadium was already counted elderly. After a while, he was surprised by the grandeur of the Santiago Bernabeu. Though he is a supporter of FC Barcelona.

What the author's friend does was not surprised. Humans have a tendency to be amazed at something large dimension. Therefore, it appears the phrase "size does matter." But the bigger does not necessarily mean better too.

For a professional football club, stadium presence is so important. Because of its importance, some players labeled superstar are often sold in order for the construction of the stadium run smoothly.

Just ask David Villa, David Silva, Nikola Zigic and Carlos Marchena which should create so that the Nou Mestalla project can continue. Although until now the project is stalled due to financial difficulties that plagued Valencia. Though Nou Mestalla is projected to rival the Santiago Bernabeu and Camp Nou with a capacity of 73 200 seats.

Arsenal is another example of the importance of a stadium. The Highbury stadium was too small for a club as big as Arsenal. Though initially Highbury stadium has a capacity of 70,000 spectators, since the case of Hillsborough in 1989, Arsenal and stadiums in England are required to have a seat entirely. Therefore, the capacity of Highbury was decreased to 38,000 spectators.

For clubs like Arsenal, the number of 38000 seats too stunted compared to Old Trafford, which became 75635 seats in 1996. Therefore, the Arsenal was building a new stadium at Ashburton Grove with construction costs amounted to 390 million pounds in 2004.

How clever they are, Arsenal got an extra 100 million pounds from Emirates Airlines as the naming rights of the stadium. Cooperation with the Emirates was touted as the largest cooperation throughout the United Kingdom football history at that time.

Granada Media took a five percent stake by investing amounted to 47 million pounds. Then working with Nike apparel that reportedly reaches 130 million pounds. Now Arsenal's costume supplied by Puma, after teaming up with Nike during the 20 years ending in 2014.

With a total value of cooperation reached 277 million pounds, do not be surprised if in January 2014 Arsene Wenger announced if Arsenal has already paid off the loan of the Emirates Stadium and are ready to buy expensive players.

Mesut Ozil, Alexis Sanchez, Danny Welbeck, and Petr Cech were the names that have been purchased. Do not close the possibility in the future; Arsenal buys others players labeled superstar, with assuming the target and become the winner of Premier  League and Champions League.

In ancient times, the club never considered income from stadium ticket sales. However, with the continued rise of the club needs in order to compete with other teams, then the ticket sales and food sales at the stadium into a liability.

Everton also has a desire to have a new stadium with a large capacity to reap more profits. It was no wonder when Farhad Moshiri bought a 49.9 percent stake in Everton, Bill Kenwright dream of having a stadium. Similarly, the Evertonian.

The club is aware, although prices increased (as happened in the UK at this time), the audience will never subside. Clubs are no longer directing their goal (loyalty) to local audiences, which the distance from the house to the stadium just a stone's throw.

But the tourists from abroad. Just look, some Asian faces are often seen in stadiums, even in the stands near the square where the price is of course very high. In short, club capitalizes the globalization.

Look at Leicester City. The mediocre club which is now topped the Premier League has had snared a debt of 30 million pounds in 2002 after The Walkers Stadium completed. The reason is that Leicester was relegated from the Premier League at the time.

For the sake of balancing the balance sheet, Leicester sold the stadium right to the retired American institutions, TIAA-CREF. The relief arose when King Power bought The Walkers; the stadium was renamed the King Power Stadium in 2013. In the 2015 financial statements, Leicester wrote 10.7 million pounds in ticket sales.

Currently a stadium not only as a club owner to compete. Bayern Munchen is an example. With a capacity Allianz Arena is only 67 thousand, now Bayern wants increased to 75,000 seats. Besides the sake of revenue when the Bayern play, also for the sake of Euro 2020 held in 13 cities of Europe.

The city of Munich offered Package A, which includes three matches in the group phase and one game of 16 or quarter-finals. Then in Package B, which includes the semifinals and final. But the news came that Munich unregisters in Package B.

Is it important for Bayern Munich? Yes, it is. The income is the hell for sure. But the exposure of the name of the stadium and clubs all over the world become free advertising (because they do not make payments in real terms for it).

The problem of Bayern Munich is only one, the capacity required by UEFA is a stadium with 70,000 seats. While Allianz Arena has been reduced in capacity to 67.812 for international matches and European level competition.

The idea of ​​Real Madrid a step further than most clubs. Santiago Bernabeu, which has a capacity of 81 044 seats, will be reformed into a 93,000 seat making it the third largest five-star stadium, after the Camp Nou and the Azteca Stadium.

Florentino Perez ambition does not mess around. Besides the addition of capacity, the Bernabeu will add a new interior as VIP lounge which more exclusive, a roof that can be opened and closed, exterior covered by an appearance of LED lights, offices, restaurants, malls, hotels, new club's museums as well as underground parking areas. Unbelievable luxury!

For the sake of the project, Real Madrid needs a fund of 400 million euros. In order to be achieved, Perez will sell stadium naming. The name of Petroleum Investment Company (PIC), Microsoft and Coca-Cola came up.

Unfortunately, Tio Flo has to be patient after his great ambition was stopped by the High Court of the City of Madrid. The court asked that Real Madrid postponed the overhaul of the stadium because the European Investigation Commission conduct an investigation into suspicions of illegal aid from the government of the City of Madrid.

Whereas before the High Court of Madrid, Madrid City Council, as well as the General Development Plan of Madrid has issued its approval.

If Real Madrid just renews the old stadium, it's different with the rivals, FC Barcelona. Barca has the ambition to build a new stadium, in the land where Camp Nou stand.

If Real Madrid would prefer the commercial side in the planning, the FC Barcelona is more to the sport. The plan called Espai project was suspected as the biggest and best sports complexes in the world, located in the city center.

Imagine, 105,000 spectators in the stadium, 12,000 in Palau (sort of GOR), ice sports arenas, social and commercial zones, office, academy of La Masia and a parking lot with a capacity of 5,000 cars in one place in the city center. Incredible, right? But, wait.

With an estimated cost of 600 million euros, FC Barcelona had difficulty in financing. Therefore, the club has announced will give the naming rights to the sponsor.

Qatar Sports Investment (QSI) briefly glanced towards the offers. However, Barcelona impressed uncertainty to QSI. The reason was simple because Qatar allegedly became a supporter of funding terrorist groups and the actions of the Government in the construction of a World Cup Stadium. This reluctance extends to cooperation sponsor in the jersey that will run out soon.

Why do clubs compete to build the fancy stadium, while on the other side the television broadcasting rights soared? The reason is simple because my colleague that mentioned earlier in the first paragraph. Football clubs are aware, despite getting big broadcasting rights, viewers will still want to come to the stadium to feel different sensations.

According to a study by Deloitte, it said if revenue from stadium tickets are absolutely vital to a club. "While the revenues from the TV continued to rise in most leagues, this does not help the team in connection with the squad. To improve the club's ability to compete financially, the stadium that was the biggest advantage, "said Andrew Hampel, CEO of ISG.

Furthermore, Deloitte found the facts if the world's top nine clubs are in the top nine positions in the revenue from ticket sales.

"Although no significant improvements (that's important there is a renovation, although in a minor scale), it is possible for a club to improve the experience of watching the game for consumers (fans) and the ability to raise revenue from ticket sales," said Hampel.

Yes, the stadium is a stage for the squad to show their talents in front of the fans. This is why there is a saying home match often determine on behalf of the hosts. There is a spirit that is driven by the fans present at the stadium.

The audience did not come to the stadium to see the defeat or monotonous game of team. Nor to see amateur players play because they have already paid the expensive tickets.

That is why many famous clubs bring in players who well known, not only to help the first team squad capability and sales of merchandise, but also to attract viewers.

Look how full was Santiago Bernabeu when Cristiano Ronaldo was introduced to the public. At that time,  CR despite escorted by the security guard and the show was stopped in the middle of the event because many fans were entering the field.

For a country, the presence of the Stadium is very important ones. Hungary wants to rebuild a football power through the construction of stadiums in order to created a reincarnation of Mighty Magyars.

Portugal had spent 732 million US dollars to pay for construction of seven new stadiums for the sake of Euro 2004. This amount is still small compared to the 2002 World Cup in Japan Korea, where Japan spent 4.5 billion US dollars to build seven new stadiums and renovating three other stadiums.

In the 2014 World Cup Brazil spent 14 billion US dollars and reported 3.6 billion US dollars spent on parts of the construction and renovation of the stadium. Of course, the Brazilian government's actions to get the massive protests due to the condition of the people who are poor.

Although emerging controversy, the Brazilian government is not only thinking about the country's image alone.

The most prominent example is when the San Francisco 49ers built a new stadium in 1997 with the slogan "Build the Stadium-Create the Jobs!". Yes, with the construction of the stadium will create jobs in the stadium and the area around the stadium will be awakened anyway.

Jobs appeared not to confine themselves to the construction and housing sector merely. Hotels, restaurants, souvenir shops and office space around the stadium will require human resources.

The latest case is a violation of human rights by the government of Qatar in World Cup stadium construction. The safety factor of the workers who did not get the attention, worker accommodation which far away from humane, without clean water, and sleep in cramped place and meager salaries and must be cut to agents of workers, evoked sympathy from the international community.

But the government of Qatar is still continuing construction of the stadium until today. There is a certain political lobbying and urgency for Qatar to hold World Cup. Not for reasons of short-term economy, but long-term, and the country's image. However, before the image is achieved at the World Cup, Qatar name has been tarnished red blood.

Now with the rules of the Financial Fair Play (FFP), should make the club could be more relaxed and do not worry about gaps in the squad. FFP more or less curb clubs to spend money to buy the best players, regardless of losses.

Therefore, the less well-established club can focus on the construction of the stadium to create extra income in the future.

"In the era of Financial Fair Play, the club's ability to enhance the viewing experience for fans have been rising. Stable long-term income is vital, and the stadium is the best option, "said Richard Cheesman, Director of Business Development and Financing ISG.

It was correct what Cheesman said. Galatasaray, which has been a client of ISG, is in the 18 clubs who get income from stadium ticket. Though Galatasaray is outside of the five top European leagues.

Then there is Atletico Madrid rose to the position 15, Tottenham Hotspur in the top 13. Then there is FC Barcelona being the only club from the big four clubs in the big four position who earn income on ticket sales more than 100 million euros annually.

That's why the stadium as one of the points of verification infrastructure that is quite important for the professionalism of the club. Besides the sake of revenue from ticket sales, the club will be able to build a mass base of supporters in a planned manner.

1 comment:

  1. I really appreciate your support on this.
    Look forward to hearing from you soon.
    I’m happy to answer your questions, if you have any.


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