Hefty tax hikes for Premier League stadia

Article posted by Coliseum, December 1^st, 2022

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Football clubs are set to be hit with multimillion tax hikes on their stadiums next year after business rates were shaken up as part of the budget presented recently.

‘yahoo!finance’ stated that the Premier League’s (UK) 20 stadiums will face almost £7 million in extra taxes next year after their valuations were pushed higher.

The Premier League is the highest level of the men’s English football league system in the United Kingdom. Contested by 20 clubs, it operates on a system of promotion and relegation with the English Football League (EFL).

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‘yahoo!finance’ further stated that new analysis by real estate specialists at Altus Group has found that the values for Premier League stadia shot almost 50 percent higher after revaluation levels were confirmed recently.

Business rates – the property tax facing UK businesses – have been revised for the start of the new financial year in April 2023, after previous criticism that they were still based on levels from 2017.

The new shake-up has benefited many high street retailers and hotels but moved higher for online retail warehouses and many leisure firms.

It has resulted in a 7.3 percent increase on an average for all non-domestic properties in England (UK), but Premier League stadia will rise by 48.9 percent for the rateable values, which will increase to £75.66 million from £50.8 million next year.

The Premier League team Aston Villa F.C.’s home – the 42,785-capacity Villa Park in Birmingham, England – was the only stadium to see its valuation fall – dropping by £250,000 – and therefore will see a slight reduction in its next rate payment.

Tottenham Hotspur F.C.’s new £1 billion stadium – the 62,850-capacity Tottenham Hotspur Stadium in London, England – has the highest valuation for business rates of any football ground in the country at £10.28 million.

The Tottenham Hotspur stadium will see its annual business rates bill jump by over £1 million to £4.78 million from April.

Elsewhere, Manchester United F.C.’s residence – the 74,310-capacity Old Trafford in Stretford, England – will see its annual bill jump to £3.74 million from £2.87 million.

Proportionately, the biggest loser under the 2023 revaluation was Leeds United’s 37,792-capacity Elland Road Stadium in Leeds, England, which saw its value skyrocket 315 percent whilst Wolverhampton Wanderers F.C. and Brighton & Hove Albion F.C. have both seen rises of over 250 percent on the values of their stadiums.

Robert Hayton, UK President at Altus Group, said, “Valuations of football stadiums are complex and take into account not only the size or capacity of the stadium but their quality as well as attendances and income. The valuers of the draft lists have clearly downplayed the impact of the pandemic on values given restrictions were still in force on the assessment date with games being played behind closed doors.”

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