Fan's View Fan's View 23/24 - No.34: Reading at home

[Ewes]

That was the price for a 20 year old existing stadium, not the cost to build it now.

Football club owners buying the club's stadium have to be seen to be buying at close to market value, as if they inflate the price there are consequences for doing so (see Derby County FC) . So they mostly userr on the lower side and the valuation will not reflect the cost of building a new stadium.

It was also for the stadium alone, whereas ours will include ancillary facilities. Furthermore it was before building costs escalated post Covid.

BTW, ours will cost a lot more than four times £24m!!!

Thanks Colin.

Just Googled it - their stadium cost £50+M to build plus a further £750K on the pitch itself. So, the owner has bought it for about half cost price, or as you suggest, current value. Presumably this means the club have not only lost this as an asset but have got a pittance in return.

I’m no expert but I’m still struggling to understand the huge construction costs involved. OK, I accept purchasing the land will cost a few bob. Brentford’s stadium was built on prime London land for £70M only a few years ago.

And why is it that commercial buildings like a stadium depreciate in value whereas domestic properties increase? Based on theses 2 examples, I can’t see why our proposed new stadium is expected to cost what people are suggesting.