KBRA releases research examining the structural and credit considerations of European football stadium financing amid evolving redevelopment and construction trends.
Stadium financing has steadily evolved over the past century, with the complexity and scale of modern projects introducing new structural and credit considerations. Today's developments often involve advanced financing methods, revenue-backed structures, and multipurpose venue strategies. In Europe, ageing stadiums, changing fan demands, and broader commercial ambitions are driving a surge of redevelopment and new construction. This KBRA report focuses on the mechanics and credit considerations of these projects, particularly in European football.
Key Takeaways
- Robust project structures enhance investor confidence. Stadium financings benefit from contractual safeguards such as bankruptcy-remote entities, cash waterfalls, and reserve accounts, ensuring cash flow protection and prioritisation of debt service.
- Fan engagement is a strategic asset. Clubs with strong local support and loyal followings are more likely to maintain stable revenues from ticketing, hospitality, and sponsorships, even during periods of poor team performance.
- Relegation risk is a defining credit factor. In Europe, projects must account for the revenue impact of relegation to a lower division, which can materially affect cash flows and refinancing outcomes.
- New builds create potential upside but bring execution risk. New stadiums offer greater long-term revenue potential, but face challenges such as permitting, construction, and stakeholder hurdles that may hinder timely completion.
- Municipal cooperation and infrastructure are crucial. Even privately funded projects often rely on public coordination for permitting, transportation access, and urban integration, all of which influence project feasibility and acceptance.
- Revenue diversification supports resilience. Projects that combine ticketing, hospitality, naming rights, and non-sports income are better positioned to weather performance dips or economic downturns.
Click here to view the report.
Recent Publications
- FCT OL StadCo EUR320 Million Rating Report
- KBRA Affirms BBB+ Rating to Olympique Lyonnais' (OL or the Club) EUR320 Million Financing for the Groupama Football Stadium
About KBRA
KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.
Doc ID: 1011391
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Contacts:
Garret Tynan, Senior Managing Director, European Head Project Finance and Infrastructure
+353 1 588 1235
garret.tynan@kbra.com
Niall Flynn, Director
+353 1 588 1220
niall.flynn@kbra.com
Alan Clear, Associate Director
+353 1 5881195
alan.clear@kbra.com
Andrew Giudici, Global Head of Corporate, Project, and Infrastructure Finance
+1 646-731-2372
andrew.giudici@kbra.com
Media Contact
Adam Tempkin, Senior Director of Communications
+1 646-731-1347
adam.tempkin@kbra.com
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Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com
