Premier League clubs face sharp tax increases on their stadiums starting next year. Arsenal and Manchester United are among the hardest hit, with rates bills set to jump by millions of pounds after the Government confirmed new business rates payments based on 2024 valuations in last week's Budget.
An analysis by global tax firm Ryan reveals that rateable values of stadiums across England's top five divisions have surged 25% to £111.74 million. Most clubs will face higher payments from next year, with further increases to follow as transitional relief caps fade away.
Arsenal anticipates the largest cash increase among Premier League clubs. The club's rates bill will rise by £1.1 million to £4.8 million annually from April, after its stadium valuation climbed to £11 million.
Manchester United faces a substantial jump at Old Trafford. The club's rates bill will leap by £973,840 from April to £5.79 million. Tottenham Hotspur Stadium, despite a smaller £96,200 rise, will carry the division's largest total bill at £5.8 million.
Valuation methodology drives increases
The sharp rises stem from how football stadiums are assessed for tax purposes. Alex Probyn, practice leader for Europe and Asia-Pacific property tax at Ryan, explained the mechanism behind the increases.
«Football stadiums are valued using the receipts and expenditure method, which is driven entirely by income and operating performance,» Probyn said. «The last revaluation was based on April 1 2021, when grounds were still shut with full-capacity crowds not returning until July 2021. The new list reflects the position on April 1 2024, with stadiums fully open and commercial revenues significantly higher, so the increases we are seeing are exactly what the methodology produces.»
Wide variations across clubs
Brentford's GTech Stadium recorded a 300% value jump, while Nottingham Forest's City Ground saw a 153.4% rise. Not all clubs face higher bills. Wolves and Burnley were the only Premier League clubs to see valuations fall, by 32.8% and 6.3% respectively.
Championship side Sheffield Wednesday saw its stadium valuation rise 21.8% despite the club entering administration. Wrexham recorded the largest increase in England and Wales, with its Racecourse Ground valuation soaring 612.4%.
The new business rates will be calculated using a new reduced multiplier, but the updated valuations mean most clubs will still pay significantly more from 2025 onwards.
Note: This article was created with Artificial Intelligence (AI).
