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It was a pleasure to join the @FT_Podcast_ this week to discuss the past and present issues surrounding stadium construction in Italy.
I thought it might be interesting to share some things that came up during our chat and in research. So, a thread... (deep inhale)
I thought it might be interesting to share some things that came up during our chat and in research. So, a thread... (deep inhale)
Italia & #39;90 was the last big stadium-building project & came at a hefty financial price, with works predictably going 84% over budget.
Most had running tracks installed due to CONI (Olympic Committee) subsidising costs, resulting in poor views and a bad TV spectacle for fans
Most had running tracks installed due to CONI (Olympic Committee) subsidising costs, resulting in poor views and a bad TV spectacle for fans
Timing was unfortunate. Italy missed the & #39;90s/& #39;00s boom of modern, glossy stadia construction because it couldn& #39;t afford to, having sunk so much into the 1990 project.
But those grounds were quickly outdated & many built or renovated in 1990 haven& #39;t changed much since
But those grounds were quickly outdated & many built or renovated in 1990 haven& #39;t changed much since
Juventus were stuck with the universally despised Delle Alpi, but bought it off Turin council for €25m in 2002, allowing them to eventually tear it down and build what is now the Allianz Stadium in 2011.
(Before then they shared Olimpico di Torino with Toro from 2006)
(Before then they shared Olimpico di Torino with Toro from 2006)
Juve are one of just four teams in Serie A - along with Atalanta, Sassuolo and Udinese - to own their own ground.
The crucial point was reaching an agreement with the local council, and Italy& #39;s infamous bureaucracy is the biggest obstacle facing many stadium projects.
The crucial point was reaching an agreement with the local council, and Italy& #39;s infamous bureaucracy is the biggest obstacle facing many stadium projects.
Roma hoped to have the & #39;Stadio della Roma& #39; built by 2017 and ground is yet to be broken. A dispute saw Cagliari play their home games 1000 miles away in Trieste for a period in 2012. San Siro alternatives have been talked about since 2013, but now seem to be getting somewhere
Any decision takes a long time to come. And there is a sea of red tape to get through. What& #39;s more, local councils who are holding up the red tape would be sacrificing hefty rental payments on the stadia they own if they allow a new project to go ahead. Bit of an issue.
Therefore one of the doubts I have around CVC& #39;s stadium development fund is how it hopes to overcome the red tape.
Or would the plan be simply to throw large cash sums at local councils to take ownership of current grounds, like Juve did with the Delle Alpi?
Or would the plan be simply to throw large cash sums at local councils to take ownership of current grounds, like Juve did with the Delle Alpi?
CONI president Giovanni Malago talked to @Gazzetta_it last week about a "system conditioned by TV rights money".
"The only alternative is to have income from stadiums and their modern use," he said.
"The only alternative is to have income from stadiums and their modern use," he said.
He suggested the only route to a nationwide stadium revamp would be hosting a major tournament again.
Italy did try unsuccessfully to host Euro 2012 and 2016, and are considering a bid for Euro 2028 now.
Third time& #39;s a charm?
Italy did try unsuccessfully to host Euro 2012 and 2016, and are considering a bid for Euro 2028 now.
Third time& #39;s a charm?
Owning a stadium has many obvious benefits, and would allow these clubs to enhance the match day experience and invest in infrastructure they currently have little interest in putting money towards.
But it can also help clubs be (at least slightly) less dependent on TV money
But it can also help clubs be (at least slightly) less dependent on TV money
Juve were the first club to own their ground. Since 2011 they& #39;ve opened a museum, shopping centre, stadium tours, premium hospitality and more.
The club& #39;s revenue between 2011 and 2019 went up by 201.8%, from €153.8m to €464.3m
The club& #39;s revenue between 2011 and 2019 went up by 201.8%, from €153.8m to €464.3m
Obviously that& #39;s not only from the stadium - but it& #39;s helped.
Match day revenue grew from €11m to €31m in the space of a year after the Allianz Stadium was built.
By 2018/19, the club was making €70.7m on a game day.
Growth of 512% this time.
Match day revenue grew from €11m to €31m in the space of a year after the Allianz Stadium was built.
By 2018/19, the club was making €70.7m on a game day.
Growth of 512% this time.
These are just a few thoughts from what I found to be a very interesting discussion with @schneiderweiler.
You can listen to the full podcast, which starts with a fascinating insight into the CVC deal with @muradahmed, here
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You can listen to the full podcast, which starts with a fascinating insight into the CVC deal with @muradahmed, here
