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Business Case development for a new stadium for Arsenal Football Club

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Introduction

Business Case development for a new stadium for Arsenal Football Club For Mr R. Sennalphan and the project steering group Proposed by Lu Shang Executive Summary The proposal focuses on the new stadium prospects. The Arsenal Football Club is looking forward to construct a new stadium at Ashburton Grove. Arsenal is one of the most famous and widely supported football clubs in the world. The main driver behind the project will make Arsenal leave their traditional home in Highbury, where have been based since 1913, is the clubs desire to increase the capacity of the ground, The construction of a new 60,000-seater stadium will address this problem. As well as the stadium itself, the contract includes the construction of three bridges over railway lines, roads and site buildings, a new waste recycling centre and council depot, offices and the new Arsenal Community Sports Centre. Opportunity Available The Arsenal Football Club enjoys support from its enormous fan base around the globe with interest in the team spreading from its traditional European base to encompass huge support in Asia, as well as in Australia and the American continent. The stadium in Highbury which has 38,500 seats is significantly below that of some of the main rivals. ...read more.

Middle

Nevertheless, Ashburton Grove, where the new stadium is to be built, covers 27 acres. Compared with, the 100-acre Manchester United site, this may seem small, but the vast majority of Manchester United supporters arrive by car. The Arsenal situation is entirely different with almost 70% of supporters arriving by public transport. 5. Project Finance According to cash flow statements, it can be seen that the cash flow for both 2002 and 2003 have negative figures, and start to make profits from 2004 which is �83,495,000. Because at that time, the business just begin to generate revenue from sponsorship and also has income from the waste and recycling centre. In addition, Payback Period Method identifies how long it would take to recover an investment from the returns attributable to that investment. In this case, the payback period is 4 years, and the club will has positive cumulative cash flow until 2006. Furthermore, the net present value is �42, 972, 945 which makes the project more acceptable, and the internal rate of return is 15%. Based on the financial appraisal, the feasibility of this project is very high, although it will make loss in the early years, but the potential for earning profits is big. ...read more.

Conclusion

Furthermore, the waste and recycling centre will be built. The income from waste and recycling centre need to be take into account from this year till end of the project. The other income will be the money from sponsorship. 2005 Fixtures and fitting will be installed, and the payment will be occurred for the coming 2 years. The income from selling advertising space will generate profit. 2006 The payment for subcontractors will occur in this year and the amount of costs for the waste and recycling centre (2005, 2006) need to be paid. Start to sell tickets, lease executive boxes and corporate entertaining and catering will generate revenues. 9. Conclusion and Recommendations The new stadium will have a world class sports facility, high quality architecture, a comprehensive Environmental Traffic Management system, and large capacity of ground to the supporters. All of these advantages will attract world wide visitors to the area, and generate substantial additional income, which is sustainable develop the Club's football success. This report outlines the huge benefits, and opportunities for the Arsenal Football Club, and the potential risks existed in the project. Furthermore, it also identifies the stakeholders and market competitive advantages of the project. Displaying the skills and resources required for the proposal and the time schemes. The financial appraisal gives clear ideas about the project is acceptable and has good prospect. 10. ...read more.

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