Pompey enjoy big fall in business rates

PORTSMOUTH Football Club has seen the largest fall in business rates across the country, according to figures released from rating adviser Altus Group.

Thursday, 4th May 2017, 5:55 am
Updated Tuesday, 9th May 2017, 6:48 pm
Fratton Park

Research by the company found that many of England and Wales’s football clubs have been penalised for success with substantial increases in their rateable values at the national revaluation on April 1.

The largest rises in rateable value were felt by Swansea City (300 per cent), Southampton (296 per cent) and Stoke City (293 per cent).

Eight of the 10 largest rises go to Premiership clubs.

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Of clubs in the top four English leagues, Portsmouth saw the biggest fall in rateable value (-75 per cent).

The grounds with the highest rateable values belong to Arsenal (£6,130,000) and Manchester United (£6,090,000).

Altus Group executive vice president, Robert Hayton, said: ‘In many respects the system rewards failure.

‘Win promotion to the next league and your rateable value goes up. Do it in such a way that your position looks secure and your rateable value is set even higher.

‘The worst thing a club can do is get promoted just before the date used for the revaluation and then crash out again soon after. ‘There’s no adjustment allowed mid list and you’ll be stuck with your inflated rateable value for the next five years.

‘This is a quirky area for valuation. There’s no real market for a football stadium when there’s only one occupier – one club – likely to take it.

‘It’s rare to have two teams bidding for a ground, as happened in Stratford, or a team lured 60 miles to a new home town, as happened in Milton Keynes.

‘The result is that the Premier League’s superpowers enjoy falls in their rateable values, while the Premiership’s second-rank clubs face the biggest rises.

‘They also face the greatest threat of relegation.’

Rateable values for football stadia and grounds are calculated using gate receipts – the maximum possible and the actual average – rather than local property values.

This is weighted with an assessment of the club’s ability to pay, based on whether it might go up, go down or maintain its league position.

The assessment is made using a fixed date before revaluation. Value is also added for a ground’s 
facilities, but hotels and bars are usually assessed separately.