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Tetteys Jig

Spurs in for Godfrey and Aaron's for £80m

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Say you expand stadium capacity by 10000. If on average you increase attendance by 5000, and on average charge £30 per ticket, with 20 home games that comes to extra £3M revenue per season. I think I'm lowballing this. I don't know what the margins are, but I figure costs are relatively fixed, we're talking about 50%+ margins on those extra seats. That's £1.5M profit then. If you demand 10% return on capital investment to cover risk and opportunity costs, you should be willing to pay £15M for the extra capacity. If you can charge higher for the new seats and/or you can cover some of the costs by dipping into the "repairs" budget because the old stands would have to be fixed anyway, you can go up to £20, 30M.

I'd say that not putting all your eggs in one basket (whether it's player-basket or stadium-basket) is the prudent approach to spending all that money we don't actually quite yet have.

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Always been a fan of stadium expansion, some very wise old owls on here are against, dont really know why, its a valuable capital investment in the club as far as I'm concerned, together with a standing area.

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5 hours ago, Van wink said:

Always been a fan of stadium expansion, some very wise old owls on here are against, dont really know why, its a valuable capital investment in the club as far as I'm concerned, together with a standing area.

I'd guess that some of those 'wise old owls' are fortunate enough to have a season ticket, in which case they don't need expansion. 

Given that us old uns don't have long left, it's understandable that we'd rather see the money spent on the squad, providing entertaining, competitive football. 

I'm old, but I want investment in the Stadium, a new City stand to take us up to 32,000 initially,  with a view to increase the Snakepit and the other corner long term.

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If we got £80 million for those two would be very good business! Sad to see them go, but one thing for sure, with the tv money, parachute payments we would be best to spend rather than pay w huge tax bill.

So stadium expansion and buying young talented players from other teams academies would be beneficial for future player sales.

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