A gathering of football club owners, investors, chief executives, and other key figures from Europe’s biggest football clubs convened in Berlin this week to discuss the future of UEFA competitions from 2024 onwards. While the primary focus was on UEFA’s competitions, an unexpected topic took center stage – the rise of multi-use arenas and the potential they hold for football clubs in the post-Covid era.
Tim Leiweke, a renowned figure in US sports management, known for bringing David Beckham to Major League Soccer in 2007, delivered a presentation that caught the attention of the attendees. Leiweke, who currently oversees the development and management of over 300 venues across the US, Europe, and beyond, emphasized the growing demand for live events, a phenomenon driven by the Covid-19 lockdowns.
Leiweke pointed out that multi-use arenas, strategically located at the heart of cities and easily accessible, have become the epicenter of this live event revolution. He cited examples such as Taylor Swift’s latest tour raking in a staggering $1 billion in ticket sales alone and premium hospitality packages for the F1 race in Las Vegas selling for $50,000 each.
One notable project in the pipeline is the £365 million indoor arena, being built adjacent to the Etihad Stadium in partnership with the City Football Group (CFG). This project, expected to open next year, is set to be the largest indoor arena in the country, and CFG hopes it will significantly boost the group’s overall value.
Interestingly, the earnings from the arena, including ticket sales and merchandising, will not directly benefit Manchester City’s first-team budget. However, with CFG’s substantial financial resources and regulations limiting spending on player fees and wages, infrastructure investment of this scale becomes an attractive alternative.
The 23,500-seat arena, soon to be known as “Co-op Live” due to a £100-million naming rights deal, has already garnered strong ticket sales, with investor Harry Styles slated to be one of the first to perform there.
Leiweke’s presentation ignited discussions among the attendees regarding similar ventures in Europe. Real Madrid has invested €900 million in renovating the Santiago Bernabéu Stadium, introducing multi-use features akin to Tottenham Hotspur’s stadium. AC Milan is contemplating a new stadium with similar capabilities on the outskirts of the city, while Inter Milan may need to relocate. These ambitious projects involve substantial investments in the hundreds of millions or even billions of euros.
Among the attendees was Todd Boehly, sparking speculation about the future of Stamford Bridge under the new Chelsea ownership. Everton continues with their new stadium plans, despite financial constraints.
One conspicuous absence in this stadium development race is Manchester United, despite having ample space for expansion. The club is currently embroiled in ownership disputes and a series of controversies, diverting attention away from any potential stadium or arena projects.
However, CFG, with its global expansion strategy, continues to thrive amidst adversity, with the recent announcement of a new club in Brazil and plans for another arena. This success comes despite facing 115 serious charges from the Premier League, following their previous victory over significant financial wrongdoing allegations at the Court of Arbitration for Sport in 2020.
As European football clubs contemplate their futures, the message from Berlin is clear: the multi-use arena era is upon us, offering a path to growth that many clubs are eager to embrace, while others are still considering their next moves.
