Leeds United are currently locked in talks with the Leeds City Council over a proposed stadium expansion.
The 49ers hope to turn Elland Road into a 53,000-seater venue in the near future, although there are issues regarding the transport blueprint laid out by Leeds United before the green light can be given.
Despite that, all parties are optimistic over the redevelopment of Elland Road materialising, and Adam Williams has now told Leeds United News what it could mean for the club financially.
Exclusive: Leeds set to experience £25m spike in gate receipts with Elland Road expansion
The Head of Football Finance and Governance Content for GRV Media said: “At the moment, the capacity is just under 38,000. Going to 53,000 is set to significantly increase matchday income and have an outsized impact on Leeds financially over the long term.
“Starting with gate receipts, Leeds earned £31m in 2023/24, which is the last financial year for which we have the accounts. I’d estimate that is going to rise to at least £40m in the Premier League this season – and that’s a conservative guess. So a pretty crude pro-rata calculation based on the existing capacity and yield per fan suggests they are going to earn in the region of £56m once the expansion is complete.
“For context, that would be higher than every Premier League club besides the ‘Big Six’ – perhaps Newcastle and maybe now Everton. We’ll have to wait and see on the latter.
“However, in reality, the yield per fan is going to increase on its current rate as part of the expansion. The 49ers are stadium experts and they have commercialised the Levi’s Stadium – the home to their NFL franchise sometimes known as the ‘Field of Jeans’ – to fantastic effect. They have generated the highest gate receipts in the NFL over the last two seasons, I believe.
Photo by Kirby Lee/Getty Images
“In English football, there is clearly more resistance to nakedly commercial ambition and if they try to hike prices too much, there will be significant pushback from fans, and quite rightly so.
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“However, I think it’s inevitable that we’re going to see an increased emphasis on the corporate hospitality areas of the stadium, as well as other measures to increase dwell time at the stadium and increase yield per fan. I think they’ll be looking for at least £75m per season at a 53,000-seater Elland Road once they have got the structure right in terms of price points and so on.
“That in turn is going to increase the value of the club. The 49ers and their limited partners want to sell the club at a £1bn valuation within the next few years. You need a modern, money-printing stadium to do that. Otherwise, your costs are just going to continue to exceed revenue.”
The latest on Elland Road expansion
The UK Government themselves sound like they expect these plans to be approved, having cited the Elland Road redevelopment as a project set to create thousands of jobs at the Regional Investment Summit in Birmingham.
A statement read: “Leeds United Football Club is planning to make a further investment of more than £200m in the first phase of construction of a redeveloped Elland Road stadium. This will represent a huge private-sector commitment to Leeds, supporting jobs, growth and the long-term future of the club and its community.
“The club is working closely with the Council, Mayor and all stakeholders on planning and light rail, to deliver this transformative investment on schedule for Leeds, for Yorkshire and for the future of Elland Road.”
Leeds still need to get their transport blueprint approved, but the overall signs are very promising.