|After Euro 2012 stadiums want to earn for it's upkeep
The National Stadium has a plan to be financially independent in a year from now. Wroclaw arena wants to be independent in 3-4 years, and Poznan counts on Lech fans. In Gdańsk nothing is known yet.
Besides hundreds of kilometres of expressway roads and highways the most noticeable effect after Euro 2012 are the spectacular stadiums in tournament cities: Warsaw, Wrocław, Poznań and Gdańsk. Unfortunately, their maintenance costs a bit...
The National is has the best perspectives
Despite what people may think the National Stadium is in a quite good shape. The estimated constant maintenance cost, without organising festivals and not using it for commercial purposes – heating, electricity, water and security is amounted to approx 18 mln PLN. Depending on the number of events there are additional variable costs. Than the general cost of maintenance can even amount to 30mln PLN.
And however among the four it’s the most expensive one, in the same time National has the best earning perspectives. According to the plan the stadium is supposed to earn from three sources: events, marketing and sponsor rights and renting office space, the conference centre, fitness club and the fan shop. Cost of renting the facility varies between 150 to 650 thousand PLN for an event (days to prepare the stadium, like building the main stage, are included in the price).
- Financial funds for maintaining the stadium in 2012 are accounted in the Ministry of Sport and Tourism of the Republic of Poland, and beginning from 2013, after signing operator contract, maintenance costs will be covered by the National Sport Centre (NCS) – explains Daria Kulińska, spokesman of NCS. And what’s important, the business plan prepared by the company assumes, that from 2013 the National will in fact earn for its living.
Heretofore events like Madonna and Coldplay concert. And as we managed to find out, two more events haven’t been published yet (the rights to it has the organizer).
Wroclaw creates a server farm
The Stadium Wrocław belongs to Wrocław 2012 LLC, which is also its operator. In turn Wrocław 2012 LLC shares are the property of the city of Wrocław. And so making things a little bit simpler one can say that the city has to find 2,5 mln PLN, which will be needed to maintain the facility till the end of the year.
Where to get revenues from? On this stadium took place events like: Klitschko – Adamek fight, George Michael concert. And a few days ago a football match between Poland and Moldavia took place. Unofficially people say that for renting the stadium PZPN will pay 200 thousand PLN plus media costs.
- On16th of October on Wrocław Stadium, a match between Brazil and Japan will take place. It’s the first in history match of such type, and it’s organizer isn’t PZPN but Wrocław 2012 company – says the companies spokesman, Adam Burak.
Similarly to the National, the stadium in Wrocław isn’t only a sports facility, it’s also a business-conference centre. The total office space amounts to 10 000 m².
- Undoubtedly the conference centre, banquet hall, terrain surrounding the stadium lease, business lodge rental, and also stadium name ownership rights sale (intensive negotiations are lasting currently). Income of few millions yearly will be provided also by the planned server farm, professionally called the collocation centre. It’s an unusual project for a sport centre – explains Adam Burak and adds, that the stadium should start earning for itself in three up to four years.
When Gdańsk will be profitable?
Gdańsk Arena Operator company specific financial data isn’t known yet, because according to the Code of Commercial Partnerships and Companies the firm will publish its financial report in January 2013.
Yet one thing is known. Depending on the number of events, the monthly maintenance cost amounts from 500 thousand PLN to 1 million PLN. – Till the end of the year we have three “mass events” planned. The first was Jennifer Lopez concert – announced Maria Bek from Gdańsk Arena – the turn of the year is a really important period for us. We want to organize two winter events: biathlon and freestyle ski jumps. They are our own projects, which we create from scratch with our partners. They show that not only PGE Arena’s offer is original but also that the facility in itself is all-round – says Bek.
Rental income from cultural, sports, corporation events, gastronomy, ownership rights sale and rental will have much influence on the earnings. It’s hard to tell will and when the stadium will be profitable.
Poznań. Lech Poznań.
The facility owner is city of Poznań, and its operator a consortium named Marcelin Management and KKS Lech Poznań. The rent which will be paid by the operator consists from twó parts: fixed costs and variable costs. The fixed part amounts to 3,1 mln yearly, the variable part depends on the amount of income generated by the stadium.
Lech reps don’t want to talk about how big are the fixed costs of the facility, probably because they manage the object for only a few months and think that it’s hard to estimate the total cost when basing on a cash flow. What’s sure is that the stadium right now earns on league matches of Lech Poznań and other events. Revenue sources today are: match day (ticket sale and other gizmos, catering revenues and hospitality ticket sale), office space rental and organizing conferences or company parties.
From 26 to 28 of September there will meeting of a group of experts for education and sport of the European Commission take place. Besides in 2012 there’s a mini football tournament and Lech Talents Day planned. Although the consortium doesn’t want to give any info about financial data, right now it seems that the main revenue source is organizing Lech Poznań matches.
What’s interesting is that the operator wants the stadium to be closely connected with local society. Throughout August there was football-plastic half-colonies for children from surrounding neighbourhoods organized there. Under the eye of qualified artists and trainers from Lech Poznań, youngsters had the opportunity to improve their skills. On the other hand, at the beginning of August the consortium along with local authorities has started public consultations regarding citizens expectations. The first effect was launching the parking at the stadium.
Time will tell who in fact is going to pay
As one can see, operator ideas how to earn money are diverse. Right now one can cautiously say that pessimism before Euro regarding the later stadium maintenance was a little overreaction. But will the plans become true? Will see at the beginning of 2014, when we’ll get to know the financial reports for 2013.
National Stadium photos - ©NCS/ J. Kośnik,
Wroclaw stadium photos – Wrocław 2012 Sp. z o.o.]