Football clubs are likely to be hit heavily by the next business rates review on 1 April 2017, Montagu Evans has warned.
Comparisons with the commercial rental markets show rates increases for football clubs exceed the UK standard.
Business rates for the 92 Premiership and football league clubs rose by 104% between 2004-05 and 2015-16, an average annual increase of
just under 9.5%. General inflation has sat in the 2-3% range.
Owing to the uniqueness of each club’s stadium, and the fact they are not let in the open market, it is difficult to adequately assessing them as properties.
There are also issues around how the ratings system has no way of accounting for a change in a club’s circumstances. Relegations and promotions are not regarded as matters which can be taken into account as part of any rating assessment despite the massive changes this brings to a club’s revenue.
Rating partner at Montagu Evans, Richard Wackett, said: “Any reform of the rating system as part of the current review needs to acknowledge the relatively restricted ability of the majority of league clubs to compete on level terms with the elite.”
