"Stadium Economics" in the Streaming Media Era

Written by Han Bing How do top European clubs make money? Or how to maintain operations? The three major economic pillars - box office, copyright, and sponsorship - remain unchanged even in the streaming media era, but their inherent room for growth has changed.

For now, the growth rate of copyright revenue from the five major European leagues is close to the ceiling (Serie A and Ligue 1 are still declining), and the increase in ticket prices is close to the limit. Stadium expansion and multi-functional profitability have become the main growth points for the income of wealthy clubs. The multifunctional stadium with a capacity of 60,000+ is the "golden threshold" for the wealthy clubs in this era. It not only represents the "ticket" for the top wealthy clubs, but also represents the sustainable income base that stabilizes the status of the top wealthy clubs.

The modernized and refurbished Santiago Bernabeu Stadium will have a box office revenue of 360 million euros in the 2024/25 season, and "all-weather" commercial revenue outside football match days will exceed 180 million euros. Both Tottenham Hotspur and Atletico Madrid have also achieved substantial increases in stadium box office and commercial revenue through new stadiums with a capacity of over 60,000. The former has firmly ranked among the top six in the Premier League, and the latter has left other competitors behind, turning La Liga from a duo to a top three. The demonstration effect brought by Real Madrid, Tottenham and Atletico Madrid has fully stimulated the investment enthusiasm of wealthy clubs to invest in large-capacity multi-functional stadiums. The accelerated "landing" of Milan's new stadium is just a new case in the current competition for "60,000+" multi-functional stadiums in European football.

The stadium has become a new standard.

The 2025 edition of the Deloitte Football Fortune List report takes Real Madrid's renovation of the Santiago Bernabeu Stadium as an example, emphasizing stadium expansion and revenue diversification, which are becoming the fastest-growing revenue sources for wealthy clubs. In the 2023/24 season, the top 20 clubs in the Deloitte Money League's season revenue will have total match day revenue exceeding 2 billion euros for the first time, accounting for 18% of total revenue, which is the highest since the 2014/15 season (19%).

In the summer of 2017, Atletico Madrid moved from the Calderon Stadium (55,000 people) to the Metropolitan Stadium (70,700 people). Match day revenue soared by 50%, driving the club's season revenue from 270 million euros (2016/17 season) to nearly 500 million euros (2024/25 season), turning La Liga from Real Madrid and Barcelona to a top three structure. In the spring of 2019, Tottenham moved from White Hart Lane (36,300 people) to the new stadium (62,900 people), bringing more comprehensive economic and social effects. In addition to the commercial revenue of more than 130 million euros per season on match days and other large-scale events, it also brings annual economic benefits of more than 350 million euros to the local community and creates 3,500 new job opportunities.

In the 2023/24 season, the capacity of the renovated Bernabeu Stadium only increased from 81,000 to 83,000, but match-day revenue doubled to a record 248 million euros. Real Madrid believes that the revenue of the Santiago Bernabeu Stadium in a single season in the future can reach 400 million euros. Half of the top 20 clubs in the Deloitte Money List have plans to expand or build new large-capacity multi-purpose stadiums, especially the Premier League.

Liverpool has expanded its two stands twice, and the stadium capacity has increased from 46,200 to 61,300 in 2024. In the future, the Dalglish and Kop stands will be expanded and the capacity will increase to 75,000. After Manchester City's two expansions, its home stadium capacity will rise to 61,000 early next year. In 2016, West Ham United rented the London Olympics home stadium (62,500 people). In 2019, Tottenham opened a new stadium. Recently, there are also plans to expand the North Stand, and the capacity can be increased by 5,000 people. It is the capacity pressure from West Ham United and Tottenham that forces Arsenal to follow the trend and expand the capacity of the Emirates Stadium to 70,000 people in order to once again widen the gap in match day income with Tottenham, Manchester City and Liverpool.

Everton has just opened a new stadium with a capacity of 52,700 this season. Newcastle United (increased from 52,000 to 65,000) and Leeds United (increased from 37,600 to 53,000) have stadium expansion plans. Even Birmingham City in the English Championship has plans to build a new stadium with a capacity of 62,000. If Chelsea chooses to build a new project on the original site, the capacity of Stamford Bridge Stadium will reach more than 60,000 people. In addition, Manchester United's plan for a new stadium with a capacity of 100,000 people is also in progress. It is worth mentioning that the design plans of these stadiums are based on the successful multi-functional money-making capabilities of Real Madrid and Tottenham.

The Demonstration Effect of the Bernabeu

The huge revenue returns obtained after the renovation of the Bernabeu Stadium have stimulated the capital motivation of the four major European league giants to expand or build new multi-functional stadiums. Barcelona will not hesitate to borrow money and sell part of the future proceeds of the stadium in exchange for funds to renovate and expand the Nou Camp stadium. The new Camp Nou stadium will have a capacity of 105,000 and is expected to be fully opened next summer. Barcelona hopes that the new Camp Nou's season revenue will be more diversified and it will surpass the Bernabeu to become the most profitable stadium in the world.

Spain will host the 2030 World Cup, which has also partially stimulated stadium investment. Valencia, which was once on par with Atletico Madrid and Sevilla, restarted the new stadium project that had been stalled for 16 years. With a loan of 322 million euros, the new stadium is expected to be completed in the summer of 2027. In addition, Betis (60,000 people) and Sevilla (55,000 people) also have plans to build new stadiums. The city of Seville also has the La Catuha Stadium, which will host the 2030 World Cup, which has been renovated (75,000 people) and will serve as the temporary home of the Sevilla duo during the construction period.

League copyright revenue is close to the ceiling, which is the fundamental reason why continental European giants put their hopes of increasing revenue in the stadium. The latest TV broadcast contracts increased by only 2% for the Bundesliga, 3% for Serie A and 33% for Ligue 1. In Serie A, in addition to Milan, Roma and Napoli have plans for new stadiums. Roma's new stadium is expected to be completed in 2028 and its capacity will be expanded from 55,000 to 62,000. Lazio's new stadium has a smaller capacity of only 45,000-50,000. In order to host the 2032 European Cup, Naples plans to build a new stadium with a capacity of 65,000.

French Ligue 1 giant Paris Saint-Germain, whose club revenue has soared in recent years, has a home stadium of Parc des Princes with a capacity of only 48,000 people, but last season it generated a match-day revenue of 170 million euros.. Originally, the current mayor of Paris refused to sell the Parc des Princes to Paris Saint-Germain for expansion. The Qatari royal family, the patron of Paris Saint-Germain, has decided to build a new stadium in the suburbs of Paris. However, in the mayoral election next year, the ownership of the Parc des Princes stadium will become an important issue. The possibility of Paris acquiring the Parc des Princes and expanding the stadium cannot be ruled out. Regardless of staying or moving, Paris Saint-Germain's plan to have a "60,000+" capacity multi-functional stadium will not change. Paris Saint-Germain will eventually pass the final threshold to become a top powerhouse.