Manchester City bets on stadium expansion for modern football experience

Danny Wilson was sitting on the railings of Burnden Park, the home of England's Bolton Wanderers, during his first football match. At the time, most fans at soccer stadiums stood on the terraces, and it was common for fans to accidentally change their seats. Adjust your position to match the movement of the crowd.

“My dad was on the terrace behind me. At kick-off he was right behind me, but at half-time he was 30 yards to the right because of the crowd shaking. That's what football looked like. ' said Wilson, Manchester City's managing director of operations.

A lot has changed in English football and at City, the club Wilson has worked for for 25 years.

When he joined in 1999, City were promoted from the third tier to the second tier of English football. Last season, the club won the treble of the English Premier League, FA Cup and Champions League.

City are aiming for a fourth successive Premier League title this season, a success that has been driven by investment from Sheikh Mansour's Abu Dhabi United Group, which bought the club in 2008.

The latest off-pitch project is the development of Etihad Stadium’s North Stand, increasing the overall capacity from 53,400 to more than 60,000, transforming the area into a “year-round entertainment destination”.

The £300 million ($374 million) development will include a sky bar, roof walk, club shop, museum, covered fan zone and a 400-bed hotel. A Co-op live music venue, scheduled to open this month, is also part of the Etihad campus. The North Stand is scheduled to open in the 2025/26 season.

“We hear from other football clubs and sporting bodies but also more broadly about what is happening in the world of entertainment and how people want to enjoy more interactive and engaging experiences. We’ll see,” Wilson said in an exclusive interview.

“That’s what people want these days. As an organization, in terms of wanting to adapt to what people want and how we can achieve that in Manchester City-related and football-related situations. We are no exception.”

Wilson said different types of fans are looking for a variety of experiences at soccer games. He referred to changes made to the stadium's south stand in 2015, which “allowed for more vocal fans”. When the stand was expanded, a new bar was installed. Two years ago, the club started hiring DJs to play on match days. Hours have been extended, bench seating has been added, and food and beverage offerings have changed. Added TV screen. The lighting was also adjusted.

“Fans arrive earlier, stay longer, and are there at halftime. It's a great atmosphere. And that's what appeals to them,” Wilson says.

“So I think over time we're shaping neighborhoods and experiences that appeal to different demographics of fans.”

English clubs are seeing value in encouraging fans to spend more on match days and making their stadiums a destination even on non-match days.

City reported record revenue of £712.8 million (approximately $887.8 million) for the 2022/23 season, but matchday revenue is still below the amount the club receives for both commercial and broadcast rights. Less than one-third.

(City face 115 charges in the Premier League for allegedly breaching financial regulations, most of which relate to the previous season. The club strongly deny the charges).

Increased revenue is a natural objective of stadium expansion. By increasing the amount of time fans spend in and around the stadium, known as dwell time, clubs can increase sales.

Tottenham Hotspur opened its $1.1 billion stadium five years ago. We currently earn £71 per fan per match.. According to football finance expert Kieran Maguire, this is almost double what City would bring in.

“We have the numbers there and have done extensive modeling of this business case, as with any kind of proposal that we submit to the board for approval,” Wilson says. .

“It's mainly about looking at opportunities outside of the match. For the fans who come to the stadium on match day, there's a big chance they'll have a better time. But that's 30 times a year, and every year we get a good draw and a cup. This is in case a war is fought.

“So this is an opportunity for more people to attract new people during quieter times on the site.”

City Square, a public fan zone, will give clubs the opportunity to “program content for each day of the week”, encouraging visits from both local and international fans.

“Once you arrive on scene, many people will want to eat or drink something while they're there, or maybe stop by the (club) store,” Wilson said.

“Rather than traditional football clubs increasing their revenue on 25 to 30 game days a year, we are looking at[projects]in a transformative way.”

The city says the stadium expansion will be a huge benefit to the local community. An estimated 890 full-time construction jobs will be created during the three-year construction period, with additional roles provided by increased amenities, bars and restaurants.

The club is working with Manchester City Council to provide jobs for people living in the neighbourhood, which is one of the most economically disadvantaged areas in the UK.

Wilson, who grew up watching more traditional games, knows that not all fans value the post-game DJ, the Tunnel Club or a walk on the stadium's rooftop. Some people will want to watch football as he always does.

“Across the fan base that attends our games, we have a huge number of long-time supporters who want an experience like they've had playing football since they were kids,” Wilson says.

“However, this is not an attempt to force people to change their behavior. We want all fans to enjoy a match of football at the Etihad Stadium in the way that suits them. ”