Stadium Management

Modern stadiums are more complex than ever, having to combine all the technological advancements and amenities that fans have come to expect. And while broadcasting deals and player transfers are highly lucrative, stadium revenue usually remains the only income stream that clubs can control.

The stakes have never been higher for club owners when it comes to building or redeveloping a stadium. In years gone by, they strove to fit as many fans in the stands as possible, believing this to be the best way of maximising matchday revenues. But at the turn of the century, a new stadium business model was developed, placing the emphasis on quality over quantity.

Tom Jones, a Senior Principal at global architecture firm Populous, describes the trend that emerged: “’Premium product’ became the new mantra for success. Rather than trying to design as many seats as possible within the seating bowl, this new school of thought said that by offering more premium seating and better amenities, clubs could take stadium revenue generation to dizzying new heights.”

Creating an entertainment experience

In recent years, the concept has evolved further. At the new Tottenham Hotspur Stadium, there are 14 different experiences available, ranging from premium general-admission seating to private members’ clubs and exclusive “loges” – private booths seating between four and ten people – with a further range of flexible upgrade options.

“The idea is that this creates not only added value for the club, but also the opportunity for new and innovative matchday experiences for fans,” says Jones. “It’s a huge upgrade on what has been on offer to football fans historically, and is a key part of a new trend in business models that we are seeing: new stadiums are not competing with other stadiums, but need to match the quality of other offerings across the entertainment and leisure sectors.”

The Tottenham Hotspur Stadium’s design strategy embraces this philosophy and stands out for the quality of the amenities across every level. Jones continues: “The club were very clear that they wanted the best experience for every fan, no matter what ticket they held, and that created an opportunity to design a vastly elevated concourse offering.” As well as the traditional hole-in-the-wall concession stands, Populous created feature bars where fans can gather before and after the game, just as they would in their favourite local pubs. “We also designed a market-style food court in the South Stand and even created the world’s first in-stadium microbrewery.”

Multipurpose venues

Stadium owners are also looking to maximise the use of their facilities, especially on non-matchdays, which has seen new stadiums become more like large multipurpose arenas, with the need to transition quickly between different types of events to accommodate a range of both large- and small-scale events on a daily basis.

It is clear that this new, diversified blueprint for stadium revenue generation creates the potential for new, diversified revenue streams. The question is: how do club owners implement it successfully? The answer lies in a new, integrated approach to business planning and design.

Collaboration brings innovation

Traditionally, business planners have operated separately from designers. They do the market research, crunch the numbers and build revenue models, and then designers become involved. But that disconnect has meant that opportunities for innovation and creativity at the very earliest stages of projects may be lost, together with unrealised business opportunities. All of this has changed very quickly in recent years.

“Modern stadium development requires a re-evaluation of these traditional methods and models of venue business planning, or ‘design-led business planning’. This holistic approach to venue planning is capable of creating new and innovative revenue-generation opportunities, intricately linking design, revenue generation and costs,” says Jones. Business planners sit next to designers, forming one unified team. “Such early-stage involvement enables clients to tap into the latent potential of underutilised spaces in venues to create new experiences and enhance brand activation, sponsorship and naming-rights opportunities.” 

Stadiums all around the world are uncovering more opportunities for their buildings to benefit not just their businesses, but also their local communities. Jones suggests that there is still great potential in the model: “With design-led business planning, we may only be at the start of what is possible for global venues.”