Financial fair play rules stadium expansion

Spending all this money now before the FFP rules kick in makes sense to me....bigger attendances generate more cash that then offsets the rules on spending....I am not fully up to speed on how. It will work but loosely speaking you can only spend within the scope of what you generate yourself...so 5,500 extra seats at £500 a season works out at almost £3 million extra income alone ....not a huge amount but it all adds to the income streams and if you consider that there will also be 1,000 seater area similar to those in the grandstand,in the Ninian stand as well, then that can also generate income in non match days...just a thought why we need the extension but I may be wrong,just crossed my mind that's all....either way I love the face our ground capacity is increasing because it shows signs of ambition.

Corky , it makes sense what you are implying. Teams in the Pl generally receive the same money in terms of TV revenue so additional revenue streams are vital if you intend to push on.

The Crystal Palace chairman was saying similar things about his club. The article is on the BBC site.

I imagine most of the demand on the waiting list would be families looking to get family stand prices so £200 per seat is a better figure to budget for if its an adult £400 and two kids £100.

I can't see the point of it from a revenue point of view. £12m spent to get 5,000 extra seats, even at say £400 per seat it takes six years to even make the outlay back. It makes more sense to keep stadium small, spend on squad to ensure TV money keeps rolling in.

I hope it is being done so the people of cardiff can see top quality football at incredibly low prices but I can't believe that is the real motivation.

Corky , it makes sense what you are implying. Teams in the Pl generally receive the same money in terms of TV revenue so additional revenue streams are vital if you intend to push on.

The Crystal Palace chairman was saying similar things about his club. The article is on the BBC site.

This is a very good point.
One of the major problems that the club faced post Ridsdale was the fact that cash flow usually generated from catering had been sold off.I think there was also an issue with the Puma contract,obviously the premier seats and there may have been others.

Spending all this money now before the FFP rules kick in makes sense to me....bigger attendances generate more cash that then offsets the rules on spending....I am not fully up to speed on how. It will work but loosely speaking you can only spend within the scope of what you generate yourself...so 5,500 extra seats at £500 a season works out at almost £3 million extra income alone ....not a huge amount but it all adds to the income streams and if you consider that there will also be 1,000 seater area similar to those in the grandstand,in the Ninian stand as well, then that can also generate income in non match days...just a thought why we need the extension but I may be wrong,just crossed my mind that's all....either way I love the face our ground capacity is increasing because it shows signs of ambition.

Yes that's make sense. All the negative people can put a negative spin on it but like you say it shows ambition, and it will generate more money for the club with extra tickets money, the same new fans paying to get through the gate spending money on drinks and food inside the ground and merchandise. It will attract more fans and cardiff city will grow and become bigger and better.

I imagine most of the demand on the waiting list would be families looking to get family stand prices so £200 per seat is a better figure to budget for if its an adult £400 and two kids £100.

I can't see the point of it from a revenue point of view. £12m spent to get 5,000 extra seats, even at say £400 per seat it takes six years to even make the outlay back. It makes more sense to keep stadium small, spend on squad to ensure TV money keeps rolling in.

I hope it is being done so the people of cardiff can see top quality football at incredibly low prices but I can't believe that is the real motivation.

It is irrelevant how much we spend now on putting seats in...the relevance comes when the FFP rules come into place and the authorities check how much income is generated by the club.

I imagine most of the demand on the waiting list would be families looking to get family stand prices so £200 per seat is a better figure to budget for if its an adult £400 and two kids £100.

I can't see the point of it from a revenue point of view. £12m spent to get 5,000 extra seats, even at say £400 per seat it takes six years to even make the outlay back. It makes more sense to keep stadium small, spend on squad to ensure TV money keeps rolling in.

I hope it is being done so the people of cardiff can see top quality football at incredibly low prices but I can't believe that is the real motivation.

It is irrelevant how much we spend now on putting seats in...the relevance comes when the FFP rules come into place and the authorities check how much income is generated by the club.

Another point is the premier league wage cap only applies to TV revenue.

Anything outside TV revenue can be added to it over the cap.

If you got a return on an investment in 5 years , I would say that's pretty good. The 6th year onwards would generate £2M per year.

The club know there is a waiting list.
The club know that the population is due to increase to 408,000 in the next ten years.

If VT was to sell the club , potential investors will look at its fan base.

Better to have 35,000 customers than 26,000.

I imagine most of the demand on the waiting list would be families looking to get family stand prices so £200 per seat is a better figure to budget for if its an adult £400 and two kids £100.

I can't see the point of it from a revenue point of view. £12m spent to get 5,000 extra seats, even at say £400 per seat it takes six years to even make the outlay back. It makes more sense to keep stadium small, spend on squad to ensure TV money keeps rolling in.

I hope it is being done so the people of cardiff can see top quality football at incredibly low prices but I can't believe that is the real motivation.

It is irrelevant how much we spend now on putting seats in...the relevance comes when the FFP rules come into place and the authorities check how much income is generated by the club.

I can see that but it does matter if we got relegated in the next few years because we would not have made the initial outlay back therefore adding to our debt and won't have the income because the seats won't be filled outside the premier league.

Agreed it is vital we stay up

Everyone is assuming they will be season ticket seats ,I don't think they will be ,it will generate more than 400 a season ticket each seat to sell single ticket sales for league and cup matches