New Stadium to Boost Aberdeen Economy

Be it plans for a multi-sports community stadium in Aberdeen, a new home for Manchester United, or the future of the iconic San Siro, there is a growing trend in stadium construction and redevelopment. 

Building a sport facility is similar to other forms of infrastructure investment: it boosts economic activity during construction and creates new commercial and economic opportunities during the asset’s lifetime.

At BiGGAR Economics, we have an interest in the built environment and in its role in local economic development. Therefore, we have been following closely these developments. 

Sporting Organisations and Their Role in Local Economies 

Sporting organisations, including football clubs, support local economic activity in several ways, including through:

• core activities: they directly employ people, spend money in local businesses and stimulate wider spending in the economy;
• fans spending: supporters spend money in the local economy during match days, money that could have gone towards other leisure activities with no local footprint (think of a tv subscription, or a day trip elsewhere); and
• other commercial activities: stadia tend to provide space for a range of commercial events, including conferences. This infrastructure supports the organisation of local events, with benefits from visitor spending.

Of course, as any sport fan would attest, sporting organisations are much more than a vehicle for local economic development. They bring a host of wider non-economic benefits. For instance, they can be a source of civic pride and provide a sense of identity. Professional sport also inspires more physical activity, with a 2018 SFA study finding that the social and health benefits from football across Scotland^[1] are over five times larger than the already significant economic activity supported.

Finally, football clubs do good in the community through their own foundations. These can take the shape of educational and rehabilitation programmes, involvement with older citizens and the championing of a number of other causes.

There is no reason sport organisations could not achieve more for their local economies. The development of modern facilities can be a vehicle for new commercial and economic opportunities.

Our Recent Experience

Our recent work for Aberdeen FC highlighted how state-of-the-art facilities not only allow an expansion of existing activities but can also support new streams of economic activity.

Aberdeen FC’s proposed multi-sport community stadium and leisure facilities at Aberdeen beach would result in new commercial opportunities: the organisation of large-scale events, including an international youth football competition; the fostering of relationships with other sport and leisure organisations in the region; and the further development of professional sport in the city. Securing an anchor tenant such as Aberdeen FC will also support the overall regeneration of the area and help in the delivery of Aberdeen City Council’s City Centre and Beach Masterplan.

The changes and expansion in activity are backed by the numbers. Our analysis found that Aberdeen FC’s annual economic impact across Aberdeen City and Shire following a move to a multi-sport community stadium would double from £32 million to £64 million Gross Value Added, with the total employment supported by the football club increasing to 1,170 jobs. 

More Details:

For more information on the work carried out on behalf of Aberdeen FC – see here.

At BiGGAR Economics, we provide the following services to sporting organisations:

• economic impact assessments;
• wellbeing and social impact assessments; and
• support in drafting Government-compliant business cases.

If you would like to explore opportunities to work with us, get in touch with andrea@biggareconomics.co.uk

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^[1] Scottish FA (2018), Measuring the Value of Football Participation in Scotland.