Crystal Palace are in the process of getting the new Selhurst Park sorted out but what would that mean for the finances of the club?
The situation around Crystal Palace‘s ownership is again up in the air with John Textor aiming to sell his shares, in order to make a move to buy Everton.
Speaking about this on the Price of Football podcast, Kieran Maguire explained that Textor selling could end up a benefit to the club, depending on who takes over the shares.
“Steve Parish may have someone else lined up [to buy John Textor’s stake] to put rocket boosters and move them to 50,000-seater capacity stadium for example and therefore they could become the next Chelsea/Manchester City/Newcastle in terms of having owners who are able to put money in”, it was suggested.
But this is rather vague and so we’ve gotten our own information on the subject to look into the impact the new stadium would have on the club.
What would a new stadium do for Crystal Palace?
After this was touched on by Maguire, we sought out some extra information and a greater understanding of how impactful a new stadium will be for Palace.
So We Are Palace spoke with TBR’s football finance expert Adam Williams in a bid to further understand what impact a new stadium will have on the club.
“Palace have been given the green light to expand Selhurst Park to 34,000, an increase of just shy of 10,000.
“Based on their matchday income of £18.8m in 2022-23, that would give them see takings through the turnstiles rise to £25.8m annually.
“In actuality, the figure would be higher than that as there would be greater emphasis on high-cost hospitality facilities and more single tickets as opposed to season tickets.
“I’d suggest a final figure closer to £30m is realistic – and that’s probably towards the more conservative end of the spectrum. Any further upgrades to the ground would obviously increase that sum exponentially.
“When it finally materialises, the redevelopment is expected to cost around £150m, but the good news is that cost is not factored into the Premier League‘s Profit and Sustainability calculation.
“‘Sustainability’ is the watchword here. Steve Parish emphasises this kind of growth ahead of an aggressive approach in the transfer market à la Aston Villa.
“This philosophy has frustrated Palace fans at times. But with a new PSR system that links spending more closely with revenue set to be introduced this summer, Parish’s philosophy will start to bear fruit soon.”
Could Palace really become Manchester City?
Maguire’s comments on investment taking Palace to new levels are also interesting but without that arriving from a billionaire like the state-owned clubs, is it feasible to compete?
“In terms of their ceiling as a football club, Palace are in a healthy position both financially and geographically.
“A would-be investor would be attracted to the fact that they have more PSR headroom than most teams in the Premier League, while their location in London opens up commercial opportunities that simply aren’t available elsewhere in the country.
“Significantly, their EBIDTA (earnings before interest, taxes, depreciation, and amortisation) is strong too. This metric is often central to how investors value clubs.
“Without the backing of a nation-state or the ultra-long-term investment of an extraordinarily wealthy private equity firm, I’d suggest they will struggle to compete with City or Newcastle in the long term.
“But their academy and player trading model is among the best in the country and Palace fans are justifiably excited about what is to come.”
While it’d be nice to be a financial heavyweight, it is probably unlikely. But despite that, the current situation at Palace isn’t bad at all and things are still exciting as we look toward the club’s future.
The post Explained: How much extra cash Crystal Palace can expect to make from new 34,000-seater Selhurst Park appeared first on We are Palace.