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.
Figure 1: Map of the Staffordshire Region In May 2015, EY published a report assessing the economic impact of the Premier League on the UK economy. The report Stoke City FC considered the impact of both the Premier League (i.e., the catchment area organisation that runs the competition and represents the 20 Premier League Clubs) and the Clubs that compete in the competition (henceforth referred to as the ‘Premier League Congleton Clubs’ or the ‘Clubs’). The report found that the 2013/14 Sandbach Premier League season contributed £3.4bn to GDP and supported over 100,000 jobs nationally across the UK.3 Nantwich Staffordshire Building on this initial report, EY has been commissioned to Moorlands assess the regional economic and social footprint of Stoke City Football Club (Stoke City FC). For the purposes of this report, Newcastle- Stoke- the relevant region is defined as the county of Staffordshire (the under-Lyme on-Trent ‘Region’) which includes the unitary authority, City of Stoke-on- Trent and eight boroughs (Cannock Chase, East Staffordshire, Lichfield, Newcastle-under-Lyme, South Staffordshire, Stafford, Staffordshire Moorlands and Tamworth). The Region as a whole Market Drayton Uttoxeter is home to 1.1 million people, with Stoke-on-Trent the most Stafford East populous municipality with just over 250,000 residents.4 Staffordshire Staffordshire is located between the West Midlands and North West regions. Both regions are major economic hubs for Rugeley the UK and in sporting terms are characterised by a strong Cannock Chase presence of football Clubs with a rich heritage, competing in both the Premier League (Everton, Liverpool, Manchester South Lichfield Staffordshire City, Manchester United, West Bromwich Albion) and the Championship (Aston Villa, Birmingham City, Wolverhampton Tamworth Wanderers). Being located between these two regions, Stoke City FC faces significant competition in developing its supporter base. For this reason, the Club identifies a local catchment area to focus its resources, target its community outreach programmes and engage with existing and potential fans of all ages. Within the Staffordshire region, Stoke City FC identifies their catchment area as being bounded by Uttoxeter to the East, Rugeley to the South, Market Drayton to the West and Congleton and Sandbach to the North.
3. ‘The economic impact of the Premier League’, EY, 2015 http://www.ey.com/Publication/vwLUAssets/Premier-League-Economic-Impact- Study/$FILE/Premier-League-Economic-Impact-Study.pdf 4. ONS
5 Stoke City Football Club Economic and ocial Impact Assessment The Premier League supporting the success of Stoke City FC
Since its inception in 1992/93, the Premier League and football and the emergence of the pay TV market, the its Clubs have sought to realise the commercial value of Premier League has been able to grow broadcast revenues. the football competition. Each of the Clubs’ main revenue For example, the broadcast rights for the first year of the streams, from ticket and merchandise sales, to sponsorship Premier League sold for over £40mn, which compares with and broadcast rights, benefits from a strong league the £11mn per year that was secured by the Football League competition which reaches a wide audience. in 1988. By the 2014/15 season, broadcasting revenues were over £1.7bn in total; over 42 times greater than in the The increase in popularity of the League is not confined to inaugural season. At time of writing, broadcast revenues for domestic football fans. Over the last two decades some of 2015/16 were expected to reach £2.86bn. the world’s best footballers have come to England to play in the Premier League. The Premier League is broadcast in The distribution of these revenues to Premier League Clubs 189 countries and watched in an estimated 1 billion homes has helped sustain a ‘cycle of growth’ by allowing them to worldwide. For example, in 2015/16 cumulative audiences in invest in improvements in squads and facilities; leading China rose by 236%, with live broadcasts reaching over 320 to improvements in the quality of the game and therefore million households. attracting a larger and increasingly diverse fan base. Benefiting from the League’s growing popularity and reach, The impact of this is an increasingly competitive League, the sale of broadcast rights has been one of the most demonstrated by the fact that it has been 8 seasons since a significant revenue streams for the Premier League and team has retained the Premier League title. Stoke City FC. Propelled by the growing popularity of English
Figure 2: Premier League broadcasting revenues, 1992/93 to 2014/15
1,800 1, 00 1, 00 1, 00 1,400 1,300 1, 00 1,100 1,000 900 800 00 00 00 Total Total revenues roadcasting mn 400 300 00 100 0 9 93 199 94 1993 9 1994 9 199 9 199 98 199 99 1998 00 1999 01 000 0 001 03 00 04 003 0 004 0 00 0 00 08 00 09 008 10 009 11 010 1 011 13 01 14 013 1 014
Domestic Highlights Overseas
Source: Premier League
Stoke City Football Club Economic and ocial Impact Assessment 6 2. Introduction
2.1 Scope of this report The benefits are not limited to the Club and tourism industries. Wider supply chains and industry in the Region will feel a ‘ripple’ This report assesses the regional economic and social footprint effect resulting from the additional economic activity generated. of Stoke City FC to the Staffordshire region in the 2015/16 To account for this, the approach taken seeks to estimate: football season. The Club generates economic benefits for the region in a number of ways; in this report we focus on three ► The ‘direct’ impact (i.e., the total impact generated key areas: directly by the activities of the Club)
► Club operations: Reflecting the day-to-day operations of ► The ‘indirect’ impact (i.e., the total activity supported the Club and the economic activity this generates within the throughout relevant local supply chains) Region. These include: ► The ‘induced’ effects (i.e., the total demand generated ► Broadcasting incomes through wages paid by the Club and through the supply chain) ► Commercial income (e.g., sponsorship) These impacts are measured by their contribution to Economic ► Match day revenue (e.g., tickets, refreshments, Output, the contribution to Gross Value Added (GVA), the merchandise) employment supported and the tax revenues generated. ► Wider income (e.g., stadium events revenue) The Club also contributes more broadly to the Region through ► Clubs operational spending across its supply chain its investment in facilities and local community projects which help to realise a range of health, education and social outcomes ► Club employees and wider match day employment by leveraging the skills and popularity of the Club. ► Charitable programmes: Stoke City FC has a large An overview of the impacts considered in this report is shown in charitable entity which operates within the Region — the Figure 3. ‘Stoke City Community Trust’. Whilst the objective of their programmes is to deliver social outcomes as opposed to commercial success they nonetheless create economic activity and employment through their operations, resulting from:
► Donation income and fundraising activities ► Community initiatives and spending ► Charity employees ► Tourism and hospitality in the Region: The Club attracts visitors from across the UK and abroad who come to watch matches, stimulating additional spending across a range of sectors. Whilst this may cover a broad range of activities, this report focuses on three primary drivers:
► Accommodation spend ► Food, drink and entertainment spending ► Travel spending
7 Stoke City Football Club Economic and ocial Impact Assessment Figure 3: The economic footprint of Stoke City FC to the Region
The Staffordshire Staffordshire Stoke City Premier and Stoke City Region FC League
Gross Stoke City Economic Value Tax Output Employment FC in Impact Added Receipts Staffordshire (GVA)
Social Health and Education Community Impact Well-being and Skills
The remainder of this report is structured as follows:
► Section 3 explores the history and growth of Stoke City FC, and its presence in the Region ► Section 4 provides a quantitative and qualitative assessment of the regional contribution of Stoke City FC to the Staffordshire economy
► Section 5 outlines the social impact of Stoke City FC to the wider Region resulting from its community programmes
The benefits are not limited to the Club and tourism industries. Wider supply chains and industry in the Region will feel a ‘ripple’ effect resulting from the additional economic activity generated.
Stoke City Football Club Economic and ocial Impact Assessment 8 3. Staffordshire and Stoke City FC
The Staffordshire Staffordshire Stoke City Premier and Stoke City Region FC League
Gross Stoke City Economic Value Tax Output Employment FC in Impact Added Receipts Staffordshire (GVA)
Social Health and Education Community Impact Well-being and Skills
3.1 Staffordshire as part of the UK At present, Stoke-on-Trent is still the centre of the British ceramic industry, and is the largest clay ware producer in the This report calculates the economic and social impact of Stoke world, with other local industries including chemical works, City FC on the Region in which the Club is located. Stoke City rubber works and tyre manufacturing (e.g., Michelin Tyre FC is the only Club in the county of Staffordshire that currently Co.), engineering plants, paper mills, textile processing, and competes in the Premier League. electronics.8 However, as the private sector has witnessed a The county of Staffordshire includes the City of Stoke-on- relative decline over the last two decades, the role of public Trent and eight boroughs (Cannock Chase, East Staffordshire, sector employment has increased. Figure 4 below demonstrates Lichfield, Newcastle-under-Lyme, South Staffordshire, Stafford, the high dependency on public sector employment within Staffordshire Moorlands and Tamworth). The GVA of the Region Stafford and Stoke-on-Trent in 2015. (i.e., its contribution to national GDP) was £19.8bn in 2015, which accounts for 18% of GVA in the West Midlands. The Figure 4: Proportion of public sector employment across Region’s GVA is forecast to grow by 2% in 2016 and 1.3% a year, Staffordshire, 2015 on average, until 2020.5 Stafford 26% Since the 17th century, Stoke-on-Trent has been known for its industrial-scale pottery manufacturing, with the City generally Stoke-on-Trent 23% referred to as the ‘Potteries’. The concentration of the pottery UK 17% industry within the Region was founded on the area’s abundant Staffordshire Average 15% supply of resources such as clay; salt and lead for glazing; and coal, used to fire the kilns. Pottery production changed from South Staffordshire 12% a cottage-based to a factory-based industry, a transformation Staffordshire Moorlands 14% placing the ‘Potteries’ at the forefront of the Industrial East Staffordshire 15% Revolution. Lichfield 11% The pottery industry suffered from wide-scale economic reforms Cannock Chase 12% to the British economy in the 20th century. This affected employment within the Staffordshire region; the dedicated Newcastle-under-Lyme 11% workforce in the Region fell from roughly 70,000 pottery Tamworth 9% workers in the 1950s to 6,000 in 2010, aggravated by the Percentage of Public Sector Employment, 2015 forced closure of the City’s pits and of its steel works at Shelton Bar. 6 The Potteries lost more than 20,000 jobs between 1998 Source: BRES and EY analysis and 2008 alone.7
5. Oxford Economics 6. ‘The lost city of Stoke-on-Trent’, The Independent, 2010 7. ‘Ceramic academy bid to save Stoke-on-Trent pottery skills’, BBC News, 2012 8. thepotteries.org
9 Stoke City Football Club Economic and ocial Impact Assessment Case Study — bet365 (parent company)
bet365 was founded in 2000 in Stoke-on-Trent by Denise Former Stoke-on-Trent Central MP Tristram Hunt has said of Coates CBE. Denise developed a sports betting platform and bet365: ‘This is a great British business success story and we trading team to launch the business online in March 2001. should be hugely proud to have it in the heart of Stoke-on- Trent. This is a company that provides high quality, well-paid The business borrowed £15mn from RBS against the family’s jobs for the city.’ betting shop estate which had been started by her father, Peter Coates, in 1974 and had been run by Denise Coates as Stoke City FC renamed the Britannia Stadium the ‘bet365 Managing Director from 1995. Stadium’ from the start of the 2016/17 Premier League season. The Potters have entered into an initial six-year bet365 has since grown to become the world’s largest online stadium naming rights agreement with the Club’s owners, gambling company. The group employs over 4,000 people bet365, extending their shirt sponsorship of the Club for a and has over 21 million customers worldwide. They are one further three years. of the largest private companies in the UK, and the largest in Stoke. Source: bet365 As joint Chief Executive, Denise continues to run bet365 and The current owners of Stoke City are the Coates family, is the majority shareholder with 50.2% of the shares. Her who bought the club back in 2006, paying an Icelandic brother John, Joint Chief Executive, who owns 25%, runs the consortium £10mn. business alongside her, with their father Peter holding the Peter Coates is Chairman of the club, whilst his son position of Chairman. John Coates is Vice-Chairman.
Despite this reliance on the public sector within Stoke-on- the total jobs available. In comparison, the West Midlands Trent, there have been cases of large-scale local private sector witnessed a 2% decline in the period whilst the UK as a whole employers significantly benefiting the economy. For example, had returned to growth (total jobs in the UK grew by 2% bet365, the Region’s largest employer, has grown to become between 2006 and 2011).10 one of the world’s largest online gambling companies. As Figure 5 demonstrates, jobs density in the region (which is Through their success on the pitch, Stoke City FC have vastly defined as the number of jobs in an area divided by the resident improved the image of the Region; as both outward looking population aged 16-64) decreased from 0.7 in 2008 (0.76 in and dynamic in terms of potential investment prospects which Midlands and 0.79 in Great Britain) to 0.67 in 2011 (0.74 in can spill over to benefit the wider UK economy. The Club’s Midlands and 0.78 in Great Britain).11 success has been of particular importance to the Region over the last ten years as the local economy has felt the pressure of wider global trends and the fall-out from the financial crisis of Figure 5: Jobs density in Staffordshire, 2005–14 2008/09. In the same year that Stoke City FC was promoted to the 0.85 Premier League (2008/2009), the global financial crisis 0.80 drove the UK economy as a whole into recession, with the
Staffordshire region hit particularly hard; in 2009 GVA in the person 0.75 Region fell by 8% (from £19.2bn in 2008 to £17.6bn in 2009) whilst the UK economy as a whole fell by 4.4% in the same 0.70 available per period.9 Jobs 0.65 As demonstrated above, the recession had particularly negative implications for the Region’s economic performance. 0.60 This had a knock-on effect for local jobs, with the total number
2008 2009 2010 2011 2012 2013 2014 2000 2001 2002 of jobs available falling from 379,000 in 2006 to around 2003 20 04 20 05 2006 2007 365,000 in 2011. This represents a loss of around 4% of Staffordshire West Midlands Great Britain
9. Oxford Economics 10. Office for National Statistics (ONS) 11. ibid.
Stoke City Football Club Economic and ocial Impact Assessment 10 3. Staffordshire and Stoke City FC
With the recession hitting the Region particularly hard, Stoke (compared to £575,000 in 2008). In 2010 expenditure on City FC’s promotion to the Premier League allowed it to social projects grew by a further 30% to £954,000 and by become an ever more important part of the socio-economic the 2015/16 season had reached £1.3 million. The diversity landscape of Staffordshire and has been described as a of the programmes Stoke City FC Community Trust deliver to ‘beacon of hope’ for the Region. Stoke City FC’s promotion the local community continues to grow every year, engaging not only intensified a sense of local pride and unity of the children and people of all ages, abilities and social backgrounds Club’s supporters but also contributed to the development to provide them with opportunities to improve their quality of the Region by way of creating additional jobs, increasing of life.12 investment in infrastructure and the community as well as Employment: Whilst employment opportunities shrank attracting visitors to the Region: elsewhere in the Region, promotion to the Premier League Revenues: In the Club’s first year in the Premier League enabled the Club to expand its operations and increase its total revenues grew by around 480% (£11.2mn in 2007/08 staff numbers. For example, prior to promotion at the end of compared to £53.5mn in 2008/09). This growth enabled the 2007/08 season, Stoke City FC employed a total of around the Club to spend more in the Region; supporting local 494 employees (including players, full and part-time match supply chains, investing in infrastructure and expanding its day staff and people employed by Stoke City FC Community community work. Trust) — two years following promotion the number of employees had grown to 619. Investments in infrastructure: Despite the deep recession in the Region, Stoke City FC continued to invest in infrastructure. Given its importance to the Region, Stoke City FC aims to During its first season in the Premier League, Stoke City FC continue to compete at the very highest level in the game (the spent £1.2mn on capital projects, compared to £700k in the 2017/18 season is set to be their 10th year in the Premier previous season. At the time of writing, ongoing investment League) with being mindful and respectful of its role in the and development of the stadium is taking place, which will community and ensuring that it is affordable and accessible to include significant improvements in facilities for disabled local football fans. supporters. In response to these objectives the Club has frozen season Spending on community projects: Promotion to the ticket prices for its entire time in the Premier League. It also Premier League created a number of new opportunities ensures that over 10,000 seats are available at less than £19 for community development initiatives. In 2009, Stoke City per game for an adult whilst children’s tickets are available for Community Trust spent £748,000 on a range of initiatives as little as £2 per game in the family stand.
Case Study — Stoke City FC gives a sense of pride and place
“ The role which Stoke City FC plays within the wider ► Stoke City FC is an important employer in its own right. economy and society of the city of Stoke-on-Trent cannot In addition, much evidence indicates that the Club is a be underestimated. The iconic bet365 Stadium stands major economic multiplier in our city, helping to create proudly above the West Coast Mainline at the southern jobs and wealth beyond the Club itself gateway to the city, giving a real sense of pride and place. ► Finally, Stoke City FC’s community activity is a powerful But there are also many more tangible benefits to the city: force for good in the city. One of their most important ► Having a Premier League Club in the city really puts us activities is their delivery of the Stoke Challenge on the map in a way few other brands do and means the initiative, which has worked with over 700 young people city is talked about globally. This makes it much easier (aged 16-18) in recent years. Their success rate (i.e., to have a dialogue with international investors, who the number of young people they help into employment, would otherwise be drawn to the “obvious” destinations education or training) is an astonishing 80%, one of the of London, Manchester and Liverpool. Having a strong highest in the region” international profile is crucial in attracting mobile David Sidaway, City Director, City of Stoke-on-Trent investment
12. 2008-2010 annual accounts of Stoke City Community Trust
11 Stoke City Football Club Economic and ocial Impact Assessment 3.2 Stoke City FC 27,902 Staffordshire Stadium capacity Moorlands
Newcastle- Stoke- under-Lyme on-Trent 99% Stadium utilisation Stafford East Staffordshire
Cannock 1 Chase South Major trophy – Lichfield Staffordshire 1971/72 League Cup Tamworth 1.9mn Social media followers
Stoke City FC was formed in 1863 under the name ‘Stoke CBE, who made over 250 appearances and scoring more than Ramblers’, when students of Charterhouse School formed 50 goals. In the final season of Sir Stanley Matthews first spell a football Club whilst apprentices at the North Staffordshire at the Club (1947/48), Stoke City FC came closer than at any Railway works in Stoke-upon-Trent. In 1878, the Club merged other point in their history to winning the Football League; with Stoke Victoria Cricket Club, and became known as ‘Stoke on the final day of the season they needed to beat Sheffield Football Club’. In August 1885, the Club turned professional. United to win the title but ended up losing 2-1, ultimately finishing in fourth place (equalling their best ever league Stoke City were one of the twelve founding members of the position from the 1935/36 season). Football League when it was established in 1888. The Club struggled in their first two seasons, 1888/89 and 1889/90, Gordon Banks, OBE also spent five seasons with the Club, finishing bottom on both occasions. In 1890, Stoke City failed representing the Club as it won its first and currently only to be re-elected to the Football League and joined the ‘Football major trophy in the 1972 League Cup Final. Stoke City FC beat Alliance’, which they won and were subsequently re-elected Chelsea 2–1 at Wembley Stadium in front of a crowd of 97,852 to the Football League. Stoke City spent the next 15 seasons spectators. in the First Division and reached the FA Cup Semi-Final in the In 1989, Peter Coates became majority shareholder at Stoke 1898/99 season before being relegated in 1907. City FC, having joined the board of directors in 1985 and Following relegation, Stoke City fell into bankruptcy and was Chairman of the Club before stepping down in 1997. The entered non-league football until 1914, when the First World 1997/98 season saw the Club move to its new ground (then War meant the Football League was suspended for four years. known as the Britannia Stadium) after 119 years at the Victoria When football recommenced in August 1919, Stoke re-joined Ground. Coates remained a majority shareholder, whilst Keith the League. In 1925, Stoke-on-Trent was granted ‘city status’ Humphreys was appointed Chairman. In 1999, a group of with the Club subsequently changing its name to Stoke City FC Icelandic businessmen formed a consortium (Stoke Holding) to in 1928. buy the Club. They purchased a 66% share in Stoke City FC for the sum of £6.6mn. Stoke became the first Icelandic-owned Over the next few decades Stoke City FC’s fans witnessed some football Club outside of Iceland. of the Club’s all-time greats, such as Sir Stanley Matthews,
Stoke City Football Club Economic and ocial Impact Assessment 12 3. Staffordshire and Stoke City
In 2005, ‘Stoke Holding’ discussed the possibility of selling the As the Club’s commercial performance has improved so too Club back to Coates. At the end of the 2005/06 season ‘Stoke has its contribution to the Region’s economy, with greater Holding’ and Peter Coates re-opened discussions regarding revenues allowing it to invest more in its infrastructure, staff the transfer of the Club. On 23 May 2006, the Coates family, and community programmes. In this respect, Stoke City through a bet365 subsidiary company, completed the FC is an example of how the Premier League model, when purchase of Stoke City FC for £1.7mn. delivered in a sustainable way, helps to support continued success and wider investment. EY have defined this model The Club won automatic promotion to the Premier League on as the ‘Cycle of Growth’, where investment in stadia, facilities the final day of the 2007/08 season, finishing in 2nd place in and talent generates increased interest in the game which the Championship and then reached the FA Cup Final for the can be converted into commercial success (via increased first time in 2010/11, beating Cardiff City, Wolverhampton broadcasting, advertising and match day revenues) allowing Wanderers, Brighton and Hove Albion, West Ham United and a Clubs to further invest in the local communities and broaden famous win of 5–0 against Bolton Wanderers (the biggest post the appeal of the Club to a wider audience. war FA Cup Semi-Final victory) on the way. However, they lost the final 1–0 to Manchester City. By reaching the final, Stoke Figure 7: The ‘cycle of growth’ City FC qualified for the 2011/2012 UEFA Europa League. The 2014/15 season saw Stoke City FC finish in 9th position with 54 points. After breaking their transfer record twice Improve and invest Generate increasing in 2015/16 (purchasing Xherdan Shaqiri and then Giannelli in stadia, facilities demand and interest in Imbula), the Club secured their place in the top half of the and talent the Premier League Premier League (9th place) for a third consecutive season.
3.3 Stoke City FC and the Premier League The 2015/16 season represents Stoke City FC’s most Distribute equitably Convert the interest successful season to-date from a commercial perspective, and use influence into commercial generating total revenues of over £119mn. Alongside the for wider football success and commercial objective of sustainable growth, Stoke City FC has development & CSR sustainable growth increasingly diverted its resources (financial and non-financial) and leveraged its brand to support a range of programmes in the community. Its activity is aimed at the provision of facilities, inspiring sports participation, improving physical and mental health outcomes and supporting education and skills.
Figure 6: Stoke City FC revenue growth
2007/08 2011/12 2015/16 £11mn £71mn £119mn total revenues total revenues total revenues Championship 14th in the 9th in the promotion Premier League Premier League
13 Stoke City Football Club Economic and ocial Impact Assessment The growth in the Club’s income since joining the Premier ► In 2015/16 Stoke City FC invested around £4mn into its League has enabled it to significantly increase its investment academy providing local young people with opportunities to in the Region and grow the profile of the Club and the city at develop their football careers at the Club home and abroad. The Club’s initiatives include: ► Invest in their Community Trust to work with the wider ► Expansion of the newly re-named bet365 Stadium, with an community to target individuals who want to get back into additional 1,800 seats to take overall capacity to nearly education, employment or generally improve their health 30,000; this will boost match day attendances, enhancing and mental well-being match day revenues and attracting more visitors to the ► Generate additional tourism to the Region as football fans Region 13 from across the UK and abroad travel to watch top-flight ► The Club's training complex at Clayton Wood has been football the subject of a multi-million pound redevelopment. The ► Increasing the domestic and international profile of the facility, initially costing around £7mn was opened for the Club, bringing further attention to the City of Stoke and the 2012/13 season and a further £6mn is being invested to broader Region further upgrade the site and ensure that the Club provides world class facilities to its first team and academy players14 The investments highlighted above, alongside increasing broadcast revenues for the 2016/17 season, suggest that the Re-investing in players from both the UK and abroad, to ► economic contribution of the Club to the Region will continue improve the quality of the existing team and to extend the to grow, although the scale of this will depend on a number of reach of Stoke City FC’s fan base appeal to other areas of factors, including the Club’s performance on the pitch. the globe. In 2015/16 the Club broke its transfer record twice, bringing Swiss star Xherdan Shaqiri to the Club for £12mn followed by Belgian Giannelli Imbula for over £18mn
13. Expected to be completed in time for the 2017/18 season 14. http://www.stokecityfc.com/team/claytonwood.aspx
Stoke City Football Club Economic and ocial Impact Assessment 14 4. Regional economic contribution of Stoke City FC
Figure 8: Key statistics for Stoke City FC 2015/16
2,391 international visits
119,000+ domestic tourists
£7mn visitor spending
301 direct Club employees (FTEs)
£1.3mn spent on local community initiatives
£29mn spent in Club supply chains
£30.6mn Commercial & other revenues
£8.4mn Match day revenues
£79.5mn Broadcast revenues
This section presents the results 4.1 Defining the approach of our analysis of the regional economic analysis Our report considers the economic footprint of Stoke City FC and takes into account a range of activities outside of football of Stoke City FC for the 2015/16 played by the first team. This includes day-to-day commercial operations, match day activities and community programmes. Premier League season. The success on the pitch also attracts visitors to the Region and their incremental spending is captured in our analysis. Figure 9 below presents an outline of the footprint of the Club which informs our economic analysis.
Figure 9: Scope of our analysis
Managing Club Operations Attracting Visitors Supporting the Community
The management of Club operations The Club helps to promote travel to Stoke City FC support the takes into account a wide array of the local area on match days. community in a number of ways: activities to support the first team These visitors stimulate additional ► Stoke City FC’s Community Trust at Stoke City FC in delivering world local activity in key areas: engages with the most deprived class football on the pitch as well as members of the community supporting activities of the pitch. ► Accommodation delivering sporting, health and These include: ► Restaurants, bars and cafes educational programmes in the ► First team operations ► Travel Region ► Training and development staff This spending, alongside that of local ► Club operations support regional fans on match days, helps to support ► Medical teams supply chains, from professional industry in the Region, generating services to catering and ► Match day delivery GVA and creating a wide range of transportation ► Stadium and facility local jobs. Generating a range of full management ► and part-time employment ► Marketing opportunities for the local ► Finance population — both for those directly employed by the Club and for those in relevant supply chains
15 Stoke City Football Club Economic and ocial Impact Assessment There are a number of wider industries which are directly Figure 10 illustrates the different components of these impacted or supported by the activities of the Club and football impacts. Capturing the induced impact is perhaps of particular as a whole, such as sports clothing, footwear, gambling and importance given that a large proportion of Club spending is news subscriptions. The impact upon these industries has not on wages and salaries (the induced impact captures economic been directly quantified in our analysis. activity resulting from a proportion of these wages being spent in the Region). The approach to estimation includes not only the direct economic impact resulting from the Clubs, match day tourism The below sections explore each of these categories in turn. and charitable entities but also the additional economic activity The quantitative impacts focus on Club operations, match in the region that occurs through their supply chains (i.e., the day tourism activity and associated charitable organisations. indirect impact) and additional activity supported by employee A wider qualitative assessment is made for certain other spending (i.e., the induced impact). categories (i.e., wider spill-over effects).
Figure 10: Approach to estimating the economic impact of Stoke City FC
Direct impact Indirect impact Induced impact
Club ► Match day revenue Increased demand in the Spending in the Region operations ► Broadcast income Region through supply chains stimulated by additional of the Club arising from its employment. ► Commercial revenue spending. ► Charitable income ► Operational spending ► Charitable spending ► Investment ► Profit/GVA ► Employees/players ► Tax contributions
Match day tourism spending Match day on: tourism ► Travel ► Accommodation ► Food and drink
Stoke City Football Club Economic and ocial Impact Assessment 16 4. Regional economic contribution of Stoke City FC
4.2 Economic contribution
The Staffordshire Staffordshire Stoke City Premier and Stoke City Region FC League
Gross Stoke City Economic Value Tax Output Employment FC in Impact Added Receipts Staffordshire (GVA)
Social Health and Education Community Impact Well-being and Skills
This section presents the results of the regional economic 4.2.1 Output footprint analysis of the Stoke City FC during the 2015/16 Premier League season, based on four key measures: The total Economic Output of Stoke City FC on the Staffordshire region in 2015/16 is estimated to be £175mn. Figure 11 ► Output: the total Output calculated reflects the value of all outlines how the direct impact breaks down across the Clubs goods and services resulting from the presence of Stoke operations, as well as the indirect effect from the supply chain City FC in the Region (the ‘direct’ effect), the relevant and the induced impact from increased employee spending. supply chains (the ‘indirect’ effect) and the additional spending in the economy resulting from all associated In 2015/16, the direct contribution totalled £127mn (72% of employees spending their wages (the ‘induced’ effect) total impact). This included just over £79mn in broadcasting revenues, representing 63% of total direct Output. ► Gross Value Added (GVA): the total GVA (or contribution to GDP), reflects the proportion of the total direct, indirect The Club generated a further £11.5mn via its commercial and induced output which represents additional value activities and £8.4mn from match day revenues. The Club to the economy. In practice, this broadly equates to the made a further £19.1mn from other sources, such as using company profit and employee salaries generated at each the stadium for other Conferencing and Hospitality events stage of the supply chain (including the ‘Big Motor Show’). A further £6.8mn of direct Output resulted from Tourism activity related to the Club. ► Employment: the total number of full time equivalent (FTE) jobs created or supported by the relevant economic activity Nearly a fifth of total economic Output (£29mn) was generated resulting from the Club’s presence in the Region (the in associated supply chains in the Region, and a further £20mn ‘direct’ effect), the relevant supply chains (the ‘indirect’ was due to induced impacts from increased consumer spending. effect) and as a result of the additional spending in the economy resulting from all associated employees spending their wages (the ‘induced’ effect)
► Tax receipts: the revenue generated for the Exchequer as a result of the economic activity (direct, indirect and induced) calculated. Taxes include employee PAYE and National Insurance, VAT and corporation tax
17 Stoke City Football Club Economic and ocial Impact Assessment Figure 11: Total Economic Output of Stoke City FC 2015/16
Broad casting Match day revenue Commercial and Stoke City Community Tourism revenue other revenues Trust turnover revenue £79.5mn £8.4mn £30.6mn £1.3mn £6.8mn
£127mn
£175mn
£29mn £20mn Total impact Direct Indirect Induced Note: Numbers may not add up to the total due to rounding Source: Stoke City FC annual accounts and EY analysis
4.2.2 Gross Value Added Stoke City FC generated a total GVA contribution of £132mn indirect effects in local supply chains and £10mn via induced to the Region during the 2015/16 season. Figure 12 below effects. These wider impacts represent nearly a fifth of the presents how GVA is split by direct impact, indirect impact and total GVA impact, demonstrating the Club’s ability to generate induced impacts. significant activity across local supply chains which not only attracts businesses to locate their operations within the area, In 2015/16, the Club and the tourism it supports directly but helps local firms benefit from having a Premier League team contributed a total of £108mn in GVA to the Region, located within the city. representing 82% of the total. A further £13mn is generated via
Figure 12: Total GVA of Stoke City FC 2015/16
£108mn £132mn
£13mn £10mn
Total impact Direct Indirect Induced
Source: Stoke City FC annual accounts and EY analysis
Stoke City Football Club Economic and ocial Impact Assessment 18 4. Regional economic contribution of Stoke City FC
4.2.3 Employment Figure 13: Employment Supported by Stoke City FC 2015/16 The presence of Stoke City FC supported over 2,200 FTE jobs in the Region’s economy in 2015/16. The activities of Stoke City FC alone contributed over 1,800 of these, with 301 FTEs directly employed by the Club, 853 supported throughout relevant supply chains (the indirect effect) and a further 682 as a result of induced effects. FTEs directly employed by the Club have more than doubled over the last ten years, indicating Direct impact 215 Stoke City FC’s success has benefited local employment in the Club impact Tourism impact Region over that period. Indirect impact 93 A further 401 FTE jobs were supported by tourism resulting 1,836 401 Induced impact 93 from visits to Staffordshire to watch Stoke City FC. Tourist activity attributable to Stoke City FC directly supported 215 FTE jobs, whilst the supply chain impact and increased consumer spending contributed a further 186 FTE jobs. 516 4.2.4 Tax The economic activity of Stoke City FC resulted in an estimated 2,237 947 £66mn total liability to the Exchequer in 2015/16. The direct tax contribution generated a total of £61mn to public finances, whilst supply chain activities contributed a further £3mn. The 775 induced contribution was £2mn. An additional £1.4mn was contributed by tourism to the Region. Total impact Direct Indirect Induced
*Note: Numbers may not add up to the total due to rounding Source: Stoke City FC annual accounts and EY analysis
19 Stoke City Football Club Economic and ocial Impact Assessment *Note: Numbers may not add up to the total due to rounding Source: Stoke City FC annual accounts and EY analysis
Stoke City FC generated a total GVA contribution of £132mn to the Region during the 2015/16 season
Stoke City Football Club Economic and ocial Impact Assessment 20 5. Stoke City FC in the wider community
The Staffordshire Staffordshire Stoke City Premier and Stoke City Region FC League
Gross Stoke City Economic Value Tax Output Employment FC in Impact Added Receipts Staffordshire (GVA)
Social Health and Education Community Impact Well-being and Skills
5.1 Introduction The SCCT serves the catchment areas of Stoke-on-Trent, Newcastle-under-Lyme, Staffordshire Moorlands, Stafford, Stoke City FC supports a variety of initiatives to improve the South Staffordshire and parts of North-West Shropshire. The lives of individuals and communities, working with a number SCCT is self-funded and financially independent of Stoke City of stakeholders including schools, local government and wider FC and is accountable to a Board of Trustees. These include sporting organisations (e.g., the Premier League). This aligns former Stoke-on-Trent South MP Robert Flello and Denis Smith, 15 with the Premier League’s overall strategy to support positive who made over 400 appearances for the Club. outcomes within local communities, aspiring to: Leveraging funding from the Club, the Premier League and ► Enhance the lives of young people other partners, SCCT spent approximately £1.3mn in 2015/16 ► Support communities in high need areas delivering a broad range of community programmes. ► Support schools An overview of selected community initiatives undertaken by the Club is presented below. ► Provide partnership opportunities This section of the report seeks to highlight the social impact Engage locally and inspire globally ► of these programmes and the benefits realised by the Community activities are delivered by Stoke City FC’s participants and the Region’s communities more broadly. Community Trust (SCCT) which was founded in 1989 and In order to measure these impacts, a range of monetary values became a registered charity in 2004. The Trust engages are assigned, where possible, to the relevant performance with people across a variety of programmes to assist them indicators resulting from Stoke City FC’s programmes in realising their potential. The Stoke City FC brand is and initiatives. used to engage with people of all ages, abilities and social backgrounds, providing sporting opportunities for young people to promote a more active lifestyle as well as providing educational, vocational and employment support.
15. Premier League
21 Stoke City Football Club Economic and ocial Impact Assessment Table 1: An overview of selected community programmes
Programme Overview Premier Premier League Enterprise is an educational programme principally targeted at secondary school age pupils. It aims League to develop enterprise and employability skills, as well as to improve attainment in English and Maths. The context of Enterprise a Premier League Club and its business model is used to inspire learning by applying real life business scenarios and challenges. Premier Premier League Kicks uses the appeal of professional football Clubs to engage young people from disadvantaged League local communities in regular football, sport and personal development activities. Kicks Club Community Organisations (CCOs) of professional football Clubs deliver weekly football and sport sessions at local community venues, complemented by mentoring and volunteering opportunities. Workshops address a range of issues from crime and the dangers of drugs, to providing training opportunities or education on living a healthy lifestyle. Premier Premier League Works aims to use the power of Premier League football, to engage young people who are not League involved in education, training or employment (NEET). The aim of the scheme is to develop young people to become Works employment ready and help them to meet their ambitions. Premier Premier League 4 Sport (PL4S) was launched in September 2009 with the aim of supporting young people to get League 4 involved in sports in their local community by offering participation, volunteering and competition opportunities Sport across 12 Olympic sports. Premier The Premier League Girls Football programme (PL Girls Football) was launched in October 2013 to encourage more League Girls women and girls to play football on a regular basis with free coaching sessions by CCO staff and talent pathways Football where relevant. A mixture of traditional football, 5-a-side football, fitness and other innovative sessions are delivered depending upon local need and demand. EuroFIT European Fans in Training (EuroFIT) is a 12-week course developed for football fans in England. SCCT is targeting men aged between 30 and 65 in particular. EuroFIT aims to help increase physical activity levels. The programme offers a toolbox of skills and techniques for living a healthy life and a chance to get fitter and feel better. Each session includes physical activity led by SCCT coaches at the bet365 Stadium as well as focusing on how to incorporate these new skills and techniques into everyday life. Stoke Stoke Challenge supports unemployed young people aged 16-18 to get back into education, employment or training. Challenge The programme provides two days a week of targeted group work and one-to-one support to help young people to develop the skills and abilities needed in all areas of education, employment and training. Since 2007, the Club have worked with just over 700 young people, achieving an 80% success rate at placing young people in positive outcomes. Stoke City The Stoke City Community Fund is a grant scheme which funds local community-based projects in Staffordshire and Community South Cheshire. In 2016, over twelve dedicated grants were given to local community initiatives which benefited Fund nearly 6,500 people. Grants were allocated for a broad range of groups, including; the Peter Pan Nursery for children with special needs in Stoke; the Green Tree House, who support vulnerable and single parents in Biddulph; the Father Hudson Group (Young at Heart); and the Juniors Citizens Group. Premier Premier League Primary Stars is a national primary school programme that uses the appeal of the Premier League League and professional football Clubs to inspire children to learn, be active and develop important life skills. Clubs provide in- Primary school support to teachers, delivering educational sessions to schools in their communities. Free teaching materials Stars ensure the rounded programme, which covers everything from PE and maths to resilience and curriculum-linked teamwork, is available to every primary school in England & Wales. City 7s The Clubs City 7s scheme has been in operation since 2005. The stated purpose of the scheme (introduced 3 seasons before promotion to the Premier League) is to encourage local children and young people to support their local team. The Clubs attracts 1,000 seven years olds each year and introduces them to football in a number of ways with individual free tickets to games and gift of a replica home shirt.
Stoke City Football Club Economic and ocial Impact Assessment 22 5. Stoke City FC in the wider community
5.2 The social impact of Stoke City FC the Club makes as potential benefits which are not readily quantifiable; so have been prudently excluded from the The Stoke City Community Trust (SCCT) aims to attract a analysis. diverse range of people from across its catchment area to attend one or more of its community programmes. Experience 5.2.1 Participation in delivering such programmes suggests that individuals Participation in football and other sporting activities is seen as who attend one programme (e.g., Premier League Kicks) are a fundamental driver for improved health and social well-being more likely to attend other programmes. By leveraging this throughout the wider community. SCCT activities are aimed at model, the SCCT is able to engage individuals across physical, inspiring greater sports participation, improving physical and educational and employment based initiatives, delivering a mental health outcomes and supporting education and skills. range of positive social outcomes. We have grouped these outcomes under the themes of community engagement, health The Club delivers a number of programmes targeted at and education and skills. increasing the participation of young people in sporting activities. These programmes are usually the first direct This section will highlight relevant participation statistics and interaction that participants have with the Club. By providing then explore each of the objectives in turn. The social impact fun, inclusive and engaging sessions this can encourage of SCCT’s programmes have, where possible, been quantified, regular sporting attendance and lead to further engagement alongside a wider qualitative assessment informed by a by participants in other programmes (e.g., those focused on literature review and stakeholder discussions. education or employment). Stoke City FC and the SCCT carry out a broad range of In 2015/16 the SCCT attracted 10,900 participants to its activities within the Region’s communities. The analysis community programmes. For the purpose of this social impact presented in this report captures only those programmes analysis, only participants who undertake SCCT’s programmes which currently capture granular data around participation outside of the school curriculum and on a regular basis16 are and performance (these are primarily Premier League funded considered; this represents nearly two thirds of participants national programmes delivered locally by SCCT). The results who attended. are therefore likely to underestimate the actual contribution
Figure 14: Overview of Stoke City FC’s Community programme participants, 2015/16
Breakdown of engaged participants by sex Breakdown of engaged participants by BME status
33% 67% Female male 9% participants participants BME participants
75% Breakdown of engaged participants by age Non-BME 17% participants 50 22% 19% 22% 15% 15% 6% Not disclosed/filled
Source: Stoke City Football Club Note: Numbers may not add to 100% due to rounding’s; age Age 0–7 Age 8–10 Age 11–13 Age 14–16 Age 17–19 Age 19+ breakdown based on a sample of 60%
A total of 6,583 unique participants A third of all 63% of participants The most popular engaged in extra-curricular participants were aged between programme, involving community programmes hosted by were female 11 and 19 years old 33% of participants, was Stoke City FC during the 2015/16 the ‘Premier League Kicks’ season, of which: programme.
16. Regular participation is defined as participants who attend at least 60% of sessions over a three month period.
23 Stoke City Football Club Economic and ocial Impact Assessment Case Study — Premier League Kicks
The Premier League Kicks programme, delivered by SCCT, affect participants, such as depression, drug addiction, provides opportunities for young people to play sport whilst homelessness and other mental health illnesses. The Trust giving back to their communities through volunteering. aims to bring people together through football to enhance The project aims to build safer, stronger, more respectful individuals’ confidence, create friendships and expand young communities through the development of young people’s people’s social networks. potential, allowing them to aspire to greater things. Two participants have gone on to volunteer with Stoke City FC Kicks provides free sport and workshops to young people in through Bright Futures, as well as various other activities that numerous areas across the City at times which suit young have formed from this group. Coaches regularly comment people and in places where sport is accessible to them, in a on the rewarding nature of the sessions, with volunteers style that is inclusive and welcoming. engaging and regularly asking to come back due to the positive atmosphere. An element of the Stoke City FC Kicks Project is ‘Bright Futures’. It deals with a range of issues which could Source: Stoke City Community Trust
5.2.2 Community Providing accessible facilities is seen as crucial in attracting participants to programmes, particularly those from less In this section we consider how Stoke City FC supports affluent backgrounds who may find it difficult to travel longer stronger local communities through investment in facilities and distances. the provision of volunteering opportunities. Over the last 15 years, Premier League funding, via the Facilities Football Foundation and Football Stadia Improvement Fund Appropriate facilities provide sporting organisations, has contributed to 99 projects worth a total of £25mn in community groups and local authorities with a space to deliver the Region (see Figure 15 below). These projects focus on a wide variety of regular sporting and non-sporting activities, delivering community sports facilities and in improving football from local community led initiatives to national programmes. Club infrastructure in the lower divisions of the football pyramid.
Figure 15: Community facility investment across the Region over 15 years
£6.3mn spent £2.3mn spent 25 Projects 7 Projects
£1.2mn spent Staffordshire Moorlands 5 Projects Newcastle- Stoke- under-Lyme on-Trent £2.8mn spent 13 Projects £6.7mn spent 21 Projects Stafford East Staffordshire
£2.0mn spent £2.4mn spent Cannock 8 Projects 8 Projects Chase South Lichfield Staffordshire
Tamworth £0.3mn spent 3 Projects
£0.9mn spent 9 Projects
Source: Premier League and Football Foundation
Stoke City Football Club Economic and ocial Impact Assessment 24 5. Stoke City FC in the wider community
Volunteering
The SCCT provides a number of volunteering opportunities ► Skills and experience: Ongoing participation in for participants. Volunteering experiences can range from volunteering could lead to formal accreditation and supporting the delivery of football programmes as assistant qualifications coaches to working on local community projects. Volunteering ► Empowering individuals: Sustained volunteering and presents a number of benefits to individuals and society, progression on programmes can result in individuals including: becoming role models for younger peers and ambassadors ► Strengthening communities: Involvement in volunteering for their Club and community. This can help to promote can help to build relationships between participants wellbeing through improving motivation and confidence of through actively engaging and supporting one another in an individual programmes, leading to heightened social cohesion
Case Study — Stoke City Community Fund
The Stoke City Community Fund is an ongoing initiative “This is an excellent way in which we can help a wide range which focuses on supporting local community led projects of projects within the community and in doing so extend in Staffordshire and South Cheshire. The Community upon the work which improves the lives of many local people. Fund operates a grant scheme to fund projects alongside Wherever possible, we are looking to support projects that are supporting a number of fundraising activities over the course original and innovative. A considerable amount of emphasis of the season including an annual charity ball. goes on funding projects which provide long term benefits to the local community.” In 2016, a total of 12 grants were provided which positively impacted nearly 6,500 people. The fund has supported a Adrian Hurst, Head of Community, SCCT range of initiatives to empower the local community from Source: Stoke City Community Trust equipment purchasing to event hosting.
A total of 256 volunteers engaged in extra-curricular The SCCT facilitates the development of a ‘volunteering community programmes hosted by SCCT during the 2015/16 culture’ whereby regular opportunities are available for season, generating over 10,000 hours of volunteering. The young people that may not have access to such opportunities most popular programme, the National Citizen Service (NCS) elsewhere in the local community. community-led scheme was successful in getting every young person who participated to engage in 60 hours of volunteering work.
Figure 16: Volunteering within Stoke City FC’s Community Trust in 2015/16
256 10,246 111 Volunteers Volunteering No of volunteer hours led sessions
25 Stoke City Football Club Economic and ocial Impact Assessment Case Study — Premier League 4 Sport — Flossie Owen
Premier League 4 Sport offered young people across the After taking up the sport thanks to SCCT and subsequently country the opportunity to participate in sport in their local being given the opportunity to apply to go to Rio, Flossie has communities. The aim of the project was to ensure young inspired many other participants in the project, particularly people have opportunities to discover a sport that excites other girls. them and inspires them to develop a sporting habit for life. Flossie hopes to become both a Level 2 coach and Grade 3 PL4 Sport, a partnership with Sport England, was a major National Referee. success with tens of thousands of young people being Flossie attended both the ‘Young officials’ and ‘Level 1 engaged nationally in over 300 satellite Clubs and hundreds volleyball’ course through PL 4 Sport funding, and it was of sports competitions delivered in a range of sports. these qualifications that allowed her to be able to build an When PL4 Sport first began back in 2009, one aim for the established CV and fulfil her dream of going to the Olympics. scheme was for it to be an Olympic legacy programme. This Stoke City FC have encouraged many more young people to goal was certainly realised by Flossie Owen, who participated get involved and gain the qualifications that are available. in the 2016 Olympic Games in Rio de Janeiro as a volunteer. Source: Stoke City Community Trust
Stoke City Football Club Economic and ocial Impact Assessment 26 5. Stoke City FC in the wider community
5.2.3 Health Physical and mental wellbeing is a particular concern in the Region, particularly amongst school-age children. Research Participation in physical activity can contribute towards by Public Health England highlighted that Stoke-on-Trent had improvements in physical and mental health. SCCT’s higher rate of obesity amongst 13-14 year olds (39.2%) than coordinated programmes serve as a starting point for young for England as a whole (33.2%)18. Prevalence of diabetes people to engage in regular community programmes by using is also higher in the Region as compared to the rest of the the reach and appeal of the Club to provide a range of football, country; the percentage of people suffering from diabetes in sporting and personal development activities. Staffordshire ranges from 6.5% (Stafford, South Staffordshire) Regular physical activity provides a number of benefits to to 10.3% (Stoke-on-Trent), whilst in many parts of England the overall health. The World Health Organisation outlines the rate is as low as 5.8%. The Percentage of people suffering from following potential benefits:17 depression in the broader region (8.5%) is also slightly higher as compared to the average rate across England (8.3%). ► Physical wellbeing: Reduced risk of cardiovascular disease, diabetes, obesity and osteoporosis In facing this challenge, the SCCT delivers a broad range of programmes which are targeted at improving physical and Mental wellbeing: Regular social interaction through ► mental health. These range from Premier League programmes team sport can reduce loneliness and the risk of mental (e.g., Premier League Kicks) to a number of locally led illnesses, e.g., improves mental health including depression initiatives. A selection of Stoke City’s locally led health and and anxiety. well-being programmes are presented in the table below:
Table 2: Selection of locally led health and well-being programmes delivered by SCCT Programme Community weight Community physical Cook and eat Active families management programme activity Scope 12 week weight 20 week physical activity 6 week basic cooking 10 week family weight management programme programme programme management programme Aims Specifically targeted at Includes ‘Walking Football’ Programme delivered Worked closely with those who reside in Stoke- session which has on behalf of the Local local schools to identify on-Trent and who were continued to regularly Authority as part of families within areas that at high risk of developing attract 25–30 participants activities to assist with have a higher average Cardio Vascular Disease who have also been able the Health & Wellbeing of number of children (CVD) and who had a Body to take part in Regional residents within Stoke-on- who are classified as Mass Index of 25 or more tournaments Trent overweight, or obese Impact At the end of the first 82% of attendees have Delivered successful Cook Events also include cohort we have seen seen an improvement & Eat programmes in two working with one school weight loss in the majority in their general health local Primary Schools, based in a low income/ of participants, with one because of the session, as well as a Resident’s high unemployment area client losing 5kg in seven and 94% believe the Association within the city weeks activity has increased Delivered a successful their confidence All males increased the programme alongside amount of time they spend Also encompasses a the ‘Sheltered Housing’ being active during the female exclusive ‘Get Back organisation that assists day and have reduced the into Netball’ programme women who have been amount of daily time that designed to get women through domestic abuse they spend sedentary between the ages of 18-60 back into physical About to launch a Successful in referring activity subdivision in liaison 55% of the clients to with local Youth and participate in the Physical This took place so that Fire Services to deliver female attendees were Activity Programme young people specifically able to balance work and between the ages of 11 family life. Delivered by and 19 years of age women for women
Source: Stoke City Community Trust
27 Stoke City Football Club Economic and ocial Impact Assessment In 2015/16, participants within SCCT’s extra-curricular Figure 17: Social value of health impacts, 2015/16, £mn programmes (i.e., those activities which do not form part of a school curriculum) who had regularly undertaken sporting activity were less likely to require public health services such as GP visits or wider clinical support compared to the national 8.7 average. EY estimates that in 2015/16 over £11.6mn of social value was 2.5 generated through health improvements resulting from SCCT’s 0.4 activity; £8.7mn of this is linked with improvement in physical health as a result of regular sporting activity. Value of improved Mental wellbeing Physical wellbeing Over £2.5mn of social value is attributable to the improvement wellbeing benefit of team benefit of regular of mental health through the reduction of mental illnesses sport sporting activity as a result of physical activity and the value associated with Source: EY Analysis, Stoke City undertaking team based sports in a social environment.
Case Study — EuroFIT Programme
European Fans in Training (EuroFIT) is a 12-week health and Designed for men aged 30-65, EuroFIT aims to help increase wellbeing programme developed for football fans in England, physical activity levels and also offer advice for losing weight. the Netherlands, Norway and Portugal. The goal of EuroFIT is The programme offers a toolbox of skills and techniques for to engage football fans in health-promoting lifestyle changes living a healthy life and a chance for participants to get fitter through their loyalty and attachment to their Clubs. The and feel better in yourself. Each session includes physical course engages men through their connection with their activity led by Stoke City Community Trust coaches at the Clubs to make sustainable improvements in their diet, activity, bet365 Stadium as well as focusing on how to incorporate and physical fitness. these new skills and techniques into your everyday life.
Source: Stoke City Community Trust
5.2.4 Education and skills potential. In turn, this contributes to a more highly skilled and productive workforce who go on to access further education Education and skills are a crucial part of a young person’s and employment which directly benefits local communities in development. The Department for Education notes that, the long run. ‘participating in education or training for longer means young people are likely to attain higher levels of qualifications and The SCCT provides a number of learning opportunities across increased earnings over their lifetime, better health and its programmes in the form of coaching, life skills lessons improved social skills’.19 and qualifications. In addition, SCCT coordinates a myriad of skill based programmes, which are solely dedicated towards Supporting the educational attainment of a young person education and skills improvement, most often for those contributes positively toward their wellbeing by providing the individuals most in need. opportunity to acquire the skills they need to achieve their full
17. http://www.euro.who.int/en/health-topics/disease-prevention/nutrition/a-healthy-lifestyle/benefits-of-regular-physical-activity 18. http://fingertips.phe.org.uk/profile/national-child-measurement-programme/data#page/0/gid/8000011/pat/6/par/E12000005/ati/102/ are/E10000028/iid/20602/age/201/sex/4 19. Participation of young people in education, employment or training. Statutory guidance for authorities, Department for Education, September 2014
Stoke City Football Club Economic and ocial Impact Assessment 28 5. Stoke City FC in the wider community
Case Study — Stoke Challenge
Stoke Challenge supports unemployed young people aged secured casual contracts with facilities, retail, catering and 16-18 to get back into education, employment or training. ticket sales. The programme provides two days a week of targeted group Stoke Challenge provides sessions on Personal Social work and one-to-one support to help young people to develop Development and Employability Awareness that engage and the skills and abilities needed in all areas of education, motivate young people through interactive group workshops, employment and training. team-building activities and one-to-one support. Stoke Stoke Challenge staff support young people to gain more Challenge is not a ‘sports based’ programme. detailed information and develop awareness on specific areas Pushing participants outside their comfort zone to adopt new of work including local opportunities. Since 2007, they have challenges has been reported to increase their confidence, worked with just over 700 young people, achieving an 80% resilience and employability. Through offering continued success rate at placing young people in positive outcomes. transitional support back into education, employment and Three young people involved within the programmes are training the Stoke Challenge has deemed to be an all-round currently on Apprenticeships /Traineeships with the Club’s success in the wider community. Community Trust. About 20 young people are currently Source: Stoke City Community Trust employed on casual contracts with the Stadium Security Team as Match day Stewards and a further seven young people
Figure 18: Education and skills overview of Stoke City FC programmes in 2015/16
304 13 17 200 Gained at least Job placements Returned to Improved one qualification secured education confidence and self esteem
*Qualifications gained across all Premier League programmes Figure 19: Social value of education and skills, 2015/16, £mn In 2015/16, many unique qualifications were available to staff and participants on SCCT programmes ranging from formal NVQ & BTEC qualifications to assistant coaching qualifications. Value of improved attendance 0.22 Vocational qualifications are often undertaken outside of the at school national school curriculum and therefore provide an additional Value of qualifications 0.26 contribution to the long-term development of an individual by unlocking wider opportunities (such as volunteering) and Value of employment taxes 0.04 improving skills and employability. Value of employment income 0.09 The value to the UK economy of education and skills associated with Stoke City FC’s programmes is estimated to be £0.6mn Wellbeing benefit of improved 1.73 in 2015/16 which is made up of £0.1mn (21%) employment skills & confidence income and tax revenue to the exchequer as a result of Wellbeing benefit of training 0.48 employment secured on programmes. A further £0.3mn (43%) is associated with the value of qualifications gained throughout Wellbeing benefit of 0.03 the year and £0.2mn (36%) on improved attendance at employment schools. The estimates also suggest that a further £2.2mn of social Source: EY Analysis, Stoke City FC value is generated by Stoke City FC programmes with 77% (£1.7mn) as a result of improved skills and confidence.
29 Stoke City Football Club Economic and ocial Impact Assessment Case Study — Premier League Primary Stars
Premier League Primary Stars is a national primary school Stoke City Community Trust staff and coaches offer primary programme that uses the appeal of the Premier League school teachers support to improve their own confidence and professional football clubs to inspire children to learn, in delivering PE as well as providing pupils with engaging, be active and develop important life skills. Clubs provide in- beneficial sessions that will enhance the school’s curriculum. school support to teachers, delivering educational sessions to The Community Trust can tailor support to suit each schools in their communities. Free curriculum-linked teaching individual school, with delivery that fulfils units of the national materials ensure the rounded programme, which covers curriculum in PE and a range of other subjects. everything from PE and maths to resilience and teamwork, is available to every primary school in England & Wales. Source: Stoke City Community Trust
As discussed previously, the community and charitable work ► Levels of engagement: the analysis presented in this delivered by SCCT has wider ranging benefits. Not all of the report only accounts for participants who attend at least potential benefits have been included within this report, 60% of programme sessions over a three-month period. At suggesting that the analysis may underestimate the total this level, participants are deemed to have sustained their impact. Additional impacts not quantified include: involvement, suggesting that the programmes are having a material impact upon their lives. Whilst this assumption ► Reduction in crime and antisocial behaviour: analysis ensures that the analysis is robust, it may underestimate suggests that where teenagers are able to access fun, the real impact upon other participants who were not able inclusive and organised sporting activities they are less to attend the required number of sessions. likely to engage in crime and anti-social behaviour. This has both positive effects for the community (as it suffers from ► Community value: the analysis presented focuses on the fewer negative interactions) and for the individuals (who benefits to the individuals who take part in the relevant are able to focus their time more constructively and avoid programmes (with the sum of the individual benefits used potential criminal records). Such benefits are difficult to as a proxy for societal benefits). This approach is likely accurately quantify and are therefore not included in this to underestimate the positive impact upon the wider analysis. community (e.g., family members of participants and local schools) who may benefit from the improved health and ► Local Club initiatives: SCCT delivers and supports a education of those directly impacted. broad range of community initiatives. A number of these initiatives (e.g., grants provided by the Stoke Community Fund) do not capture any data with respect to social outcomes and have therefore not been quantified in this analysis.
Case Study — Staffordshire Police and SCCT
“ Staffordshire police and the multi-agency partnership of finding alternative methods to reduce such behaviours and North Staffordshire work closely with Stoke City FC and improve social outcomes. The value of such a partnership SCCT in many of their programmes in an effort to improve is to use the brand of Stoke City FC to inspire and support outcomes for many young people both in terms of enhancing many complex young people to make those improvements lives but also to reduce potential offending behaviour. for themselves as well as the wider community. It is great to see the Club are part of that collective partner approach and In recent years the Trust have worked closely with play a key part in their community responsibility.” Staffordshire police and relevant partners to develop intervention programmes around reducing youth violence Mark Hardern, Staffordshire police youth violence which has been identified as a threat to this part of the area. coordinator This programme is unique as agencies are all working on
Stoke City Football Club Economic and ocial Impact Assessment 30 Summary In 2015/16, nearly 11,000 participants were attracted to SCCT’s community programmes with over 10,000 volunteering hours from members of the local community. Considering the social impact of SCCT activities, over £14mn of benefit was derived from its programmes with 81% (£11.6mn) resulting from physical and mental health benefits in 2015/16 alone. The continued success of the Premier League and Stoke City FC is expected to support further investment in the Region, delivering positive social outcomes across a broad range of community programmes and further embedding the Club as an integral hub within the community.
31 Stoke City Football Club Economic and Social Impact Assessment 6. EY Contacts
EY Sports Industry Group EY’s Sport Industry Group delivers rigour, measures impact and unlocks potential for our clients across the business of sport. Our full-service UK team of more than 30 professional advisers, works with clubs, leagues, governing bodies and major event organisers as well as investors, commercial rights holders, sponsors and start-ups to help them with all their business needs. For further details please contact the team below: Mark Gregory Chief Economist, UK&I Direct Tel: + 44 20 7951 5890 Email: [email protected] Peter Arnold Partner, Economic Advisory Direct Tel: + 44 20 7951 5587 Email: [email protected] Colin Edwards Manager, Economic Advisory Direct Tel: + 44 20 7760 9469 Email: [email protected]
Stoke City Football Club Economic and Social Impact Assessment 32 EY | Assurance | Tax | Transactions | Advisory
About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. Ernst & Young LLP
The UK firm Ernst & Young LLP is a limited liability partnership registered in England and Wales with registered number OC300001 and is a member firm of Ernst & Young Global Limited.
Ernst & Young LLP, 1 More London Place, London, SE1 2AF.
© 2017 Ernst & Young LLP. Published in the UK. All Rights Reserved.
ED None
EY-000038894.indd (UK) 09/17. Artwork by Creative Services Group London.
In line with EY’s commitment to minimise its impact on the environment, this document has been printed on paper with a high recycled content.
Information in this publication is intended to provide only a general outline of the subjects covered. It should neither be regarded as comprehensive nor sufficient for making decisions, nor should it be used in place of professional advice. Ernst & Young LLP accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material. ey.com/uk