St. George’s Park National Football Centre Proposed Sporting Facilities, Hotel and Associated Development The Football Association Economic Statement February 2010 St.GEORGE’S PARK St George’s Park The National Football Centre Proposed Sports Facilities, Hotel and Associated Development Economic Statement 23 February 2010 1 Nathaniel Lichfield & Partners Ltd 14 Regent's Wharf All Saints Street London N1 9RL Offices also in T 020 7837 4477 Cardiff F 020 7837 2277 Manchester Newcastle upon Tyne [email protected] www.nlpplanning.com National Football Centre, St. George's Park – Economic Statement Contents 1 1.0 Introduction 1 2.0 Background 2 3.0 Economic Context 6 4.0 Potential Economic Impacts 9 5.0 Potential Socio-Economic Impacts on Sport 16 6.0 Strategic Fit with Economic and Regeneration Policies 24 963096v1 National Football Centre, St. George's Park – Economic Statement Figures 2 Figure 1.1 Summary of Economic Impacts 4 Figure 2.1 Highest Football Club Turnover 2007/08 (left) and Highest Wage Spending 2007/08 (right) 3 Figure 3.1 Summary of Key Economic Trends 8 Figure 4.1 Analytical Framework for Assessing Economic Impacts 9 Figure 4.2 Summary of Gross Employment Impacts (FTE jobs) 12 Figure 5.1 European National Football Centres / Sport Institutes 16 Figure 5.2 World Cup Performance of Leading Teams since 1930 19 Figure 5.3 Investment in Football Infrastructure by Region since 2000 22 Tables 2 Table 1 Review of European National Football Centres / Sport Institutes 18 Table 2 European Cup / UEFA Champions League Titles 1955-2009 by Nationality of Manager 19 Table 3 FA Coaching Courses at the NFC 20 Table 4 NFC Strategic Fit with Policies 26 963096v1 National Football Centre, St. George's Park Economic Statement Executive Summary 2 The development of the National Football Centre (NFC) at St George’s Park will provide high specification training, administration and accommodation facilities which, together will be a focal point for football training excellence within England. The scheme will have wide-ranging economic, social and sporting impacts at a local, regional and national level, and these are summarised in Figure 1.1 below. Visitor Economy Direct Impacts Indirect Impacts & Catalytic Sport Impacts Effects 60,000 bed nights Establish a national Capital Expenditure of (inc. 43,000 focal point for football £55 million FA/sponsor nights) development Additional visits to Enhancement of 500 Person-Years FTE local tourism coaching at national Construction Jobs attractions and local levels 50 FTE Spin-off jobs in Attracting additional Provision of high 220 FTE Operational local area (90 in football tournaments specification sport jobs at NFC and hotel region) to Midlands facilities for local community use £5.5 million supplier £2 million spin-off Flagship development Potential catalyst for & wage expenditure in expenditure in raising profile of local further sport Midlands Midlands area for investment investment Figure 1.1 Summary of Economic Impacts Source: NLP analysis 963096v1 National Football Centre, St. George's Park Economic Statement 1.0 Introduction 1.1 The Football Association (The FA) engaged Nathaniel Lichfield and Partners (NLP) to prepare an assessment of the potential economic impacts of the proposed National Football Centre (NFC) at St. George’s Park, near Burton on Trent in East Staffordshire. 1.2 The function, design and overall operation of the St. George’s Park complex is described in detail in other reports accompanying the planning application submission. In summary, the facility will house The FA’s medical and exercise science, coaching, video analysis and education departments, as well as providing a training and preparation base for England teams and hotel and conferencing facilities. 1.3 The analysis is structured as follows: a an introduction to the wider economic contribution of the football industry, and the background to the NFC concept (Section 2); b a review of existing economic conditions in the local economy (Section 3); c an assessment of the potential economic benefits of the NFC proposals, including direct, indirect and induced impacts (Section 4); d an assessment of the socio-economic benefits for sport, including benchmarking against comparator national football centres (Section 5); and e review of strategic fit with economic and regeneration policies (Section 6). P1/27 963096v1 National Football Centre, St. George's Park Economic Statement 2.0 Background The Football Association 2.1 Established in 1863, The FA is the governing body of the game in England. Its activities are varied and include: • promoting the development of the game amongst all ages, backgrounds and abilities in terms of participation and quality. This also involves promoting the availability of the sport to the greatest possible number of people; • regulating the game on and off the field of play through the "Laws of the Game" and the "Rules of The Association"; • sanctioning, either directly or indirectly, all matches, leagues and competitions played in England; • overseeing the administration of the disciplinary system, which is applicable to all participants in the game (each club, player, competition, match official and any other person involved in the game in England is bound by the Rules) and the administration of refereeing throughout the game; and • organising a number of senior men’s, youth and women’s national competitions and the participation of England national representative teams in international matches, most notably the men’s senior team in the FIFA World Championships and the UEFA European Championships and friendly fixtures. The National Game 2.2 Football has more spectators, participants, revenues and media interest than at any time in its history. However, football is the nation’s game in more than just a spectator sense – the scope and reach of the game across various levels of participation is considerable: National Participation in Football • 7 million participants, plus 5 million in schools • 500,000 volunteers • 37,500 clubs, including 9,000 youth clubs • 2,000 competitions • 32,000 schools (17,000 primary) • 30,000 FA-qualified coaches • 27,000 FA-qualified referees • 45,000 pitches (at 21,000 facilities). Source: The FA P2/27 963096v1 National Football Centre, St. George's Park – Economic Statement 2.3 The FA acts as the link between the professional game and the amateur game beneath – referred to as the "National Game". There are significant links between the two sides of the game, not least of these is that the volunteers and players in the National Game are substantially football fans, who are therefore the customers of the professional game. Economic Value of Football to the National Economy 2.4 The football industry is a significant contributor to the national economy across the 92 professional football clubs that make up the Premier League and Football League. The Premier League has evolved into the world’s highest revenue generating league, attracting the world’s leading players and investing in state-of-the-art football stadia, which attracts a national and international fanbase. Economic highlights include: • total revenues for all professional clubs reached £2.5 billion in 2007/08; • Premier League broadcasting rights generated revenues of £770m with the distribution mechanism for broadcasting revenue sharing this across all professional clubs; • total tax receipts from all professional football clubs amounted to £860m in 2007/08; • total attendance at Premier League and Football League games in the 2008/09 season amounted to nearly 30 million visits, and with average attendances of 35,500 per game, it was one of the Premier League’s most successful seasons on record; and • total investment by professional football clubs in their stadia and grounds amounted to £187m in 2007/08, with total capacity now at its highest 1 since the introduction of all-seater stadia. 200 350 180 300 160 140 250 120 200 100 150 80 Turnover(£m) 60 100 40 Total WageSpendingTotal (£m) 50 20 0 0 l l r a a d o u d l) e n te o p e ool ta ls e i p s lsea e s n r t nit rp (to h r U e o he ve A r iv H C U Arsenal i ip C e L er L t m t sh s a astle United n e h es c o h n h i c e c n tt n mp a o New a M T Ma h C Figure 2.1 Highest Football Club Turnover 2007/08 (left) and Highest Wage Spending 2007/08 (right) Source: Deloitte Annual Review of Football Finance 2009; Football Economy.com 1 Deloitte Annual Review of Football Finance, 2009 P3/27 963096v1 National Football Centre, St. George's Park – Economic Statement 2.5 Football also contributes to the economy by attracting major tournaments and championship matches. For example, Euro’96 generated £195 million of additional expenditure by visitors and media attending the games, as well as significant additional expenditure (on beer, take-out food etc) associated with those watching the games on television. 2 The NFC Concept Why Burton? 2.6 Following an extensive search, in 2001, The FA purchased 143 ha of land at the former Byrkley Park estate near Burton on Trent, East Staffordshire. The key characteristics of the site are that it: 1 provides a nationally central location; 2 will provide privacy for the elite teams during training; 3 is a beautiful and inspirational environment which will create the right feel for the national centre for football training and development; and 4 is large enough to accommodate all of the training/football pitches, and other facilities, that are required for the operation of St. George’s Park. 2.7 The FA has already made