UK Sports law and commercial property
With the recent completion of Everton’s Bramley-Moore Dock Stadium (now known as the Hill Dickinson Stadium) and Manchester United’s planned redevelopment of Old Trafford along with multiple other Premier League stadium proposals (including Chelsea and Newcastle), it seems like a good opportunity to discuss some legal property considerations for such developments along with how the Premier League’s Profitability and Sustainability Rules fit into all of this.
The legal and property challenges of stadium construction and funding
Whilst there were a whole multitude of points to consider, an interesting property aspect of Everton’s project was its heritage considerations. The site was (until July 2021) designated as a UNESCO World Heritage site with the dock itself a Grade II listed structure. This meant obtaining planning permission was much more complex and layered, which included:
- needing to undertake a Heritage Impact Assessment in order to assess how the development would impact the dock structures as well as the character and appearance of the area;
- obtaining listed building consent for alterations to the dock walls and hydraulic towers; and
- consulting with UNESCO and Historic England around obligations under the World Heritage Convention with concerns being raised about the irreversible loss of authenticity. Everton worked to mitigate the impact of the development in respect of that, including the retention and restoration of the historic dock walls and the Grade II listed hydraulic towers. They also performed a detailed archaeological investigation before undertaking any work.
Another main consideration is the financial structure of stadium development and how this plays a crucial role in a club’s financial health.
Everton self-funded the circa £800 million project, whereas Manchester United are considering external financing or even public-private partnerships.
Everton’s owners initially financed through loans from various sources including MSP Sports Capital and 777 Partners. These loans carried high interest rates and therefore in March 2025, Friedkin Group, Everton’s new owners, secured a £350 million refinancing package from an oversubscribed consortium. This indicated strong investor confidence in the project.
The funding arrangements for Manchester United’s proposed £2 billion build have not yet been finalised and various options are being explored, including:
- private investment with a potential capital injection from Sir Jim Ratcliffe’s INEOS, already being a major stakeholder in club;
- debt funding as used by Everton;
- the selling of land surrounding Old Trafford, which is predicted to potentially generate up to £500 million; and
- seeking government funding for the surrounding infrastructure and regeneration projects (which would not include the stadium itself).
Both of the projects referred to highlight the legal and commercial complexities of major football developments in the UK as well as demonstrate the balance needed between ambitious infrastructure development and maintaining financial stability. Everton’s approach reflects a shift towards financial stability under new ownership, while Manchester United’s plans highlight the challenges of funding large-scale projects amid existing financial commitments and public scrutiny. Clubs must also balance, amongst other things, property law, planning regulations, commercial agreements and financial sustainability rules to deliver new stadiums while remaining compliant with regulatory frameworks.
Impact of stadium costs on profitability and sustainability rules
The high costs of building new stadiums must be balanced with financial sustainability regulations, particularly under UEFA’s Financial Fair Play (FFP) and the Premier League’s Profitability and Sustainability Rules (PSR).
PSR are designed to ensure that clubs operate within their financial means, preventing excessive losses that could threaten their long-term stability. The key principle of PSR is that a club cannot lose more than £105 million over a three-year period, with certain expenses excluded from this calculation.
Thankfully for some clubs, the cost of building a new stadium or redeveloping an existing one is excluded from PSR calculations. The rules allow for deductions related to infrastructure investment, which includes stadium construction or redevelopment, training ground improvements, youth academy investment and community and charitable spending.
These exemptions are designed to encourage long term investment by investing in the clubs infrastructure without the fear of breaching PSR.
Clubs do still have other financial implications to consider in respect of stadium construction. These include interest on loans taken to fund stadium development as these payments are not exempt from PSR calculations. They also need to consider how any new stadium will generate revenue post completion, such as ticket sales, sponsorship and hospitality as the goal will undoubtedly be to generate as much revenue as possible.
Daniel Levy ensured the Tottenham Hotspur Stadium was designed to host a variety of events beyond football including NFL games, Formula 1 karting, concerts and boxing matches. They also considered enhancing the fan match day experience by housing the world’s first in-stadium brewery and a host of beverage outfits including the 65-meter-long goal line bar, the longest in Europe.
With increasing scrutiny on financial stability in football, the legal structuring of stadium investments will be critical to ensuring long-term success and compliance with both domestic and international sporting regulations. Clubs must carefully manage financing and operational costs to remain compliant and ensure their spending strategies align with PSR rules to avoid sanctions.
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