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Stoke City Football Club Economic and Social Impact Assessment

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Stoke City Football Club Economic and Social Impact Assessment Stoke City Football Club Economic and Social Impact Assessment September 2017 In this report 1. Executive summary ........................................................................................................... 1 2. Introduction ....................................................................................................................... 5 3. Staffordshire and Stoke City FC ......................................................................................... 9 4. Regional economic contribution of Stoke City FC .............................................................. 15 5. Stoke City FC in the wider community .............................................................................. 21 6. EY Contacts..................................................................................................................... 32 Disclaimer This report (Report) was prepared by Ernst & Young LLP for the Premier League using information provided by the Premier League, Stoke City Football Club and other publically available data. Ernst & Young LLP does not accept or assume any responsibility in respect of the Report to any readers of the Report (Third Parties), other than the Premier League. To the fullest extent permitted by law, Ernst & Young LLP will accept no liability in respect of the Report to any Third Parties. Should any Third Parties choose to rely on the Report, then they do so at their own risk. Ernst & Young LLP has not been instructed by its client, Premier League, to respond to queries or requests for information from any Third Party and Ernst & Young LLP shall not respond to such queries or requests for information. Further Ernst & Young LLP is not instructed by the Premier League to update the Report for subsequent events or additional work (if any) performed by Ernst & Young LLP. Accordingly, without prejudice to the generality of the foregoing, Ernst & Young LLP accepts no responsibility to any Third Party to update the Report for such matters. Ernst & Young LLP reserves all rights in the Report. 1. Executive summary Stoke City Football Club (Stoke City FC) has competed in the Premier League since achieving promotion to England’s top flight in 2007/08. In subsequent seasons the Club has achieved significant success both on and off the field, with three successive top ten finishes between 2013/14 and 2015/16, major investments in its stadium and training facilities and annual revenues which are more than ten times that achieved in its last season in the Championship. When measuring the scale of the Club’s achievement and The sporting and commercial success of the Club in recent its impact upon the Staffordshire Region (the ‘Region’), it is years, which includes breaking their transfer record twice in the important to highlight the journey the Club has been on; from 2015/16 season, has allowed Stoke City FC to further embed surviving relegation to League 1 (the third-tier of English itself as a key member in the local economy; as the Club grows Football) on the final day of the 2004/05 season, to promotion it attracts more fans, employs more people, engages more local to the Premier League for the 2008/09 season. By leveraging suppliers, invests more in community facilities, increases the its success in the Premier League the Club has also been able Region’s global profile and elevates its attractiveness to visitors to further invest in its stadium, academy and training ground as and businesses alike. well as expansion of its Community Trust, enabling it to engage with local communities and positively impact the lives of more people, delivering physical and mental health benefits and helping to support educational and employment opportunities. Stoke City Football Club revenue growth £11mn £71mn £98mn £119mn total total total total revenues revenues revenues revenues 2007/08 2011/12 2013/14 2015/16 Championship Europa League One of the 30 richest 9th in the promotion Last 32 Clubs in the world Premier League *2015/16 includes player trading activity 1 Stoke City Football Club Economic and ocial Impact Assessment 27,902 Staffordshire Stadium capacity Moorlands Newcastle- Stoke- under-Lyme on-Trent 99% Stadium Stafford East utilisation Staffordshire Cannock 1 Chase South Major trophy – Lichfield Staffordshire 1971/72 League Cup Tamworth 1.9mn Social media followers This report estimates Stoke City FC’s contribution to the includes a contribution to GDP of £132mn,1 taxes to the Region’s economy in terms of Economic Output, Gross Value exchequer of £67mn and over 2,200 jobs supported.2 Added (GVA), employment and taxes during the 2015/16 The Club generates economic activity through a broad range season. It also provides an assessment of the wider social of activities. These include the operations surrounding the impacts of Stoke City FC and its contribution to raising the first team, academy/youth development, medical support, status of the Region more broadly. commercial teams, Club administrative functions and stadium Stoke City FC generates significant economic benefit to the and facilities management. Region through its direct operations, spending in local supply chains, and through wider economic spill-over effects. This Key findings £175mn £132mn 2,200 £67mn Total economic Total GVA Jobs supported Total tax output contribution contribution £79.5mn £8.4mn £11.5mn £19.1mn Broadcasting Match Day Commercial Other revenue revenue Revenue Revenue Figures relate to 2015/16. 1. This estimate includes the indirect (i.e., impacts upon relevant supply chains) and induced effects (i.e., the impact of relevant employees spending their wages elsewhere in the local economy). 2. Measured in terms of Full Time Equivalents (FTEs) Stoke City Football Club Economic and ocial Impact Assessment 2 1. Executive summary Around 119,600 visitors from across the UK and abroad are estimated to have travelled to Stoke during the 2015/16 season to watch the Club play. Fans visiting Staffordshire generate additional economic activity through spending on local travel, accommodation, retail and food and drink. It is estimated 2,400 that this tourism activity alone supported over 400 jobs in International visitors the Region. Stoke City FC has invested in its local community through its charitable trust, the Stoke City FC Community Trust (‘SCCT’ or the ‘Trust’). In 2015/16, the organisation spent £1.3mn to coordinate local community programmes or support charitable 119,600 entities. Through the SCCT, the Club has become a significant Day trips supporter and deliverer of charitable activities within the Region, with almost 11,000 participants benefitting from Stoke City FC led programmes during the 2015/16 season. Stoke City FC delivers and supports numerous programmes aimed at improving physical and mental health, delivering £14mn education programmes, enhancing community cohesion Spent in the local area and improving employment opportunities for thousands of individuals. These programmes deliver significant social benefits, including those which deliver tangible economic value (e.g., an individual with improved educational attainment is likely to be a more productive member of the workforce, earn higher wages and pay more tax in the future) and those which deliver increased wellbeing to individuals (measured as the 10,900 monetary value that individuals place on their improved mental or physical outcomes). Participants in community and charitable programmes The social impact of the Club’s community and charitable programmes in 2015/16 is estimated at £14.4mn, with £11.6mn of this resulting from the physical and mental health benefits associated with increased physical activity. 304 As the Club looks to invest further in its stadium and training facilities, its economic contribution to the Regional economy Gained at least one (i.e., from a GVA, employment and tax perspective) has qualification the potential to increase further. Meanwhile, the ongoing commitment from the Club to its community programmes, including expansion of support to primary schools in the region, is set to ensure that the benefits of the Club’s on pitch successes 10,246 are used to support the local communities which Stoke City FC Hours of volunteering/ works alongside and represents. community work £25mn Spent on community facilities Figures relate to 2015/16, with the exception of community facilities, which covers the period 2001–16. 3 Stoke City Football Club Economic and ocial Impact Assessment £8.7mn £0.6mn Physical wellbeing from Economic value of education increased activity and skills £2.9mn £2.2mn Mental wellbeing from Individual wellbeing from increased activity education and skills Figures relate to 2015/16. The social impact of the Club’s community and charitable programmes in 2015/16 is estimated at £14.4mn, with £11.6mn of this resulting from the physical and mental health benefits associated with increased physical activity. Stoke City Football Club Economic and ocial Impact Assessment 4 2. Introduction Football is of considerable economic, social and cultural significance to the UK. During the football season, thousands of fans travel the country to follow their team whilst millions more watch live games and highlights on television and, increasingly, online. As the top-tier of the English football pyramid, the performance of the Premier League affects all aspects of the game; from encouraging participation in school and park football across the country, to supporting the ability of English teams to compete with the best in Europe.
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