FEASIBILITY ANALYSIS
During the idea phase of a stadium project the experts of The Stadium Consultancy can assist clients in defining the project in terms of the ambition level as well as the expected goal and results of the stadium project. In other words: defining what the client wants to achieve with the stadium when completed.
In this phase The Stadium Consultancy will analyse the feasibility of the proposed project. Our consultants have long-standing experience in analysing project feasibility and avail over a large database with benchmarks and key figures, such as cost per seat and spend per head, of the leading stadium projects in Europe.
Based on the ambition level and desired capacity of the stadium an estimate of the investment costs will be made. In close collaboration with the client various options to finance the project will be explored. Given the envisaged and potential use of the stadium and using benchmarks from similar projects as well as historic data of the club, league and country statistics, an operational exploitation model will be established, projecting profit and loss accounts, cash flows and balance sheets for a 5-10 year period. After conducting a risk- and sensitivity analysis, the conditions for the feasibility of the project can be determined.
An important aspect in the feasibility analysis is the site analysis. Site selection is a key factor in determining the success of a stadium from an operational and financial perspective, as construction costs, costs of land and infrastructure, income and other essential aspects may differ from site to site. Therefore the feasibility and site analysis is an iterative process. TSC will work together with the client to specify site criteria such as costs, (public) infrastructure, geological and topographical aspects, economic activity, etc. and will rank the various sites under consideration based on these criteria.
The outcome of the site analysis will be a major element of the conclusions and recommendations of the feasibility analysis.