Ambitious stadium projects aim to bridge public-private investment goals
Sports owners transform stadiums into destinations, driving socioeconomic growth, community engagement, and revenue diversification
Jennifer Haskel
Pete Giorgio
Alice John
Kevin Westcott
Ariane Bucaille
Investment in sports infrastructure such as stadiums, playing grounds, and training facilities, is seeing an upward trend, as these developments often instigate broad social and economic returns to both the public and private sectors. This trend has seen a renewed focus in recent years, as sports teams in regions such as North America, Europe, and Asia Pacific invest heavily in developing infrastructure. With growth as a common goal, governments and communities can work with sports investors to provide supplementary infrastructure like transportation links, and community resources can help supercharge the socioeconomic impact of sports. In the next year, multiple infrastructure projects are expected to take place that could increase economic returns for communities, as well as sports becoming further embedded in the heart of culture and society.
In 2025, Deloitte predicts that over 300 global sports stadiums will have begun renovations or new builds. Almost 50% of these new stadium infrastructure projects are expected to take place across North America and Europe, according to Deloitte analysis of sports infrastructure developments taking place. The growth of stadium investment across Europe, primarily focused on soccer stadiums, attempts to attract a new wave of fans and could provide revenue diversification opportunities for the organizations setting out on these programs. In doing so, stadium developments can help reach targets for maximizing return on investment for private investors as well as accelerating socioeconomic objectives for the public sector. Stadium investment is also likely to increase across multiple global regions, as sports-led regeneration projects take place and fans increasingly demand innovative touchpoints both inside and outside the stadium.
A community-centric approach to venue development
Sports organizations can bring communities together, improve feelings of civic pride and cohesion, and further diversify the cultural offerings of a city. Delivering a sports-led regeneration program using sports venues as anchors often requires collaboration with governments and other key stakeholders to help deliver strategic initiatives; engage with the community; and develop a sustainable, thriving development where people want to live and visit.
The development of sports stadiums may no longer be able to hold focus on a single club’s interests. In developing new and enhanced stadiums, community benefits should infiltrate various aspects of decision-making.
In April 2024, Knighthead Capital Management, owners of now English Football League One club Birmingham City, announced its plans to create a Sports Quarter anchored around a new world-class stadium.1 Chairman Tom Wagner outlined his vision for the ambitious project to include the stadium, men’s and women’s training grounds, and academy teams all in one location within walking distance of the city center.2 Furthermore, he’s alluded to communications with hotels and other commercial entities that are interested in being based in the site and part of the regeneration of east Birmingham.3 Through this, the “Blues” will be fully embedded as part of the city and act as a “beacon for excellence” that is recognized worldwide, according to Wagner.4 The Sports Quarter project is anticipated to cost between £2 billion and £3 billion, with hopes to spur long-term socioeconomic impact for the West Midlands community.5 The Knighthead ownership group is engaged with government and public sectors on a range of strategic priorities.6
In Major League Baseball, the Tampa Bay Rays signed a deal in July 2024 with the City of St. Petersburg, Florida, to build a new ballpark.7 The development group for the new stadium pledged to create 1,250 units of affordable housing, 30,000 construction jobs, and 7,000 permanent jobs, with some reserved for local and historically disadvantaged residents.8 The project leaders have reiterated their commitment to bridging the generational wealth gap in the surrounding communities with this new venue, considering the project a “failure” if they do not reach that objective.9
Enhancing fan engagement by meeting generational preferences
Fans of different generations are consuming sports in different ways. According to Deloitte UK’s The Future of Sport 2024, 84% of global sports leaders surveyed said they expected different consumption preferences to be one of the most impactful next-generation trends over the next five years. Sports organizations should balance embracing the core traditions of a game-day experience with Generation Z and Generation Alpha’s heightened expectations of entertainment.10
As a first step in developing the stadium experience, organizations should consider the basics: comfort and safety, view, quality on-field product, and an exciting atmosphere. These attributes are important for many fans and should be mastered before looking at any advanced plans.
After establishing these foundations, some organizations may look to differentiate their experiences by providing end-to-end entertainment options for fans before, during, and after the game. Not only can this help enable greater spending of both time and money for fans at these stadiums, but it can also foster a greater sense of community around the sports organizations. By integrating community culture into the fabric of the stadium, the game-day experience can be uniquely localized.
The Toronto Blue Jays embarked on new renovations on their stadium at the Rogers Centre, with two phases of work aimed at elevating the fan experience. Phase one, completed in 2023, unveiled five distinct outfield “neighborhoods” within the ballpark stands, encompassing local cuisine and entertainment, representing differentiated fan experiences, and providing social spaces in each.11 The renovations also included upgraded digital technology such as “Tap N Go,” a new automated market service for food and beverage, as well as “Walk Thru Bru,” a self-serve beverage-concession stand to speed up service times.12 Phase two of the Rogers Centre renovation includes fan-centric adjustments such as angling seats toward home plate for improved sightlines.13
The smart stadium
The next generation tends to consume sports in a digital-first manner, and their game-day experiences are often no different.14 Some sports organizations are designing “smart stadium districts” that integrate advanced technology to personalize the fan experience.15 The global smart stadium market is growing, with a 2024 market size of over US$8 billion, which is expected to reach more than US$38 billion by 2033.16
The requirements for fan engagement are changing, as Gen Z and Gen Alpha prefer shorter, more dynamic content.17 Experiences are becoming a differentiator for organizations, as fans increasingly want value and will pay for greater experiences over material objects.18 New builds are incorporating elements of gaming, merchandising operations, and designs that consider “second-screen syndrome,” in which the majority of fans tend to look at secondary screens while watching sports. According to Deloitte research, 77% of sports fans surveyed say they’ve done at least one additional activity related to a game while watching a sporting event, including looking up stats, using social media, or betting.19 New stadiums are using integrated technology to broadcast these elements, keeping a greater portion of fans’ focus within the stadium.20
The National Basketball Association’s Los Angeles Clippers unveiled their new arena, the Intuit Dome, built to differentiate the fan experience at the forefront. A key highlight of the new arena is the custom-built “Halo Board,” which optimizes sight lines from all seats and prioritizes the viewing experience of upper-bowl seating. The double-sided video board hanging above center court contains a game feed, “coaches corner” with in-depth statistics, instant replays, Steve Cam (keeping tabs on Clippers owner Steve Ballmer), player profile features including photos and other personal promotions such as player foundation information, and more. To enhance the fan experience, the Halo Board will also reinvent the coveted T-shirt toss with T-shirt cannons attached, enabling fans in the upper tiers to be able to receive merchandise as well. The Intuit Dome plans to reach levels of engagement not seen before in sports, as fans will be rewarded for their cheering and provided gaming consoles at each seat for use in game-day entertainment activities, further gamifying fandom.21
The next generation of fans will likely expect personalized, seamless, and on-demand experiences. Stadium districts can incentivize fans to stay longer and enjoy different offerings including food, music and culture, as well as social spaces for different types of fans. Sports organizations are building these districts to give local and visiting fans a premium experience and generating new touchpoints for them while they are in the area.22 New technologies are streamlining purchasing by making it quicker to purchase, such as click and collect merchandise or food and beverage, as well as ticket software that can personalize messaging for each fan.23 Additionally, fans are entering the stadium in new ways, often contributing to a more convenient fan experience. Mercedes-Benz Stadium partnered with Delta to create Fly-Through Lanes, which uses facial recognition to gain quick entry for fans visiting the stadium.24
Embracing infrastructure and tech to help diversify revenue streams
Sports owners are also using enhanced infrastructure and digital technology to further diversify their revenue generation.
The success of sports organizations is evolving as, historically, global sports organizations typically relied heavily on broadcast revenue to supplement spend on wages and other costs.25 Generally, an increase in central broadcast revenue would lead to an increase in salary caps for North American sports leagues and spending allowed under certain cost-control regulations across European sports.26
Organizations seem to recognize that an overreliance on one revenue stream can place a ceiling on earning potential and expose them to market shocks, such as the COVID-19 pandemic. As elite sports clubs hold cultural and commercial capital, some organizations are leveraging their commercial assets to help bolster revenue.27 Whereas ticketing and broadcast revenue are generally capped at capacity or out of scope for individual clubs to negotiate, commercial revenue can be an underutilized lever for organizations to grow within their control.28 The evolution of stadiums into broader entertainment districts can help sports organizations increase their commercial footprint by expanding their offerings. For example, the Premier League’s Tottenham Hotspur has leveraged its new stadium to increase commercial revenue from £72 million in the 2016 to 2017 season to £227 million in the 2022 to 2023 season, supported by non-soccer events such as hosting National Football League games and concerts.29
Recent renovations of European soccer giant Real Madrid’s Santiago Bernabéu stadium in 2023 saw the club recognize record revenue in the 2022 to 2023 season, with every business line experiencing growth (outside of broadcasting rights, which are in the middle of a contract with broadcasters).30 In July 2024, the club announced it had generated over €1 billion in revenue, the highest figure ever generated by a soccer club.31 The club surpassed the billion-euro mark by initiating new business ventures during the latter part of the financial year, primarily through hosting major events and introducing premium VIP experiences.32 For example, Real Madrid brought in €18 million from Colombian pop singer Karol G’s four concerts held at the stadium.33 The club is expected to finish renovations of the stadium in the upcoming season and is looking to add non-soccer–related income in future years.34
Emerging trends in sports infrastructure
From responding to the growth in women’s sports to driving greater sustainability, sports organizations are working to embrace new fan experiences and priorities. This evolution in sports infrastructure aims to create a more inclusive, innovative, and responsible future for the industry.
Infrastructure for women’s sports
As women’s sports continue to garner attention and rising valuations, organizations are beginning to focus more on women’s sport-specific infrastructure. In the National Women’s Soccer League, the Kansas City Current christened their US$117 million riverfront stadium, CPKC Stadium, recognized as the first stadium built specifically for a women’s professional sports team.35 Further increasing the socioeconomic impact of the stadium, plans have been approved for a US$650 million mixed-use development, including apartments, hotels, restaurants, and retailers, to be built alongside the soccer stadium.36 The stadium is expected to generate almost US$50 million in annual economic impact to Kansas City.37
Across the Women’s National Basketball Association, new training facilities are contributing to an improvement in the on-court product and, in turn, the overall valuation of the franchises. The Las Vegas Aces opened their facility in 2023, with the Seattle Storm, Phoenix Mercury, and Chicago Sky all following suit.38
In England, Women’s Super League club Brighton & Hove Albion is in the planning phase to build a stadium purpose-built for its women’s team.39 Manchester City Women has also had plans approved for a purpose-built training facility at the club’s City Football Academy site.40
Premium and personalized hospitality offerings
Hospitality may be moving away from traditional corporate offerings and is now often being used as a tool to create more accessible, differentiated experiences for all demographics. Sports organizations are working to partner with higher-end brands in these spaces to offer more premium hospitality services, from celebrity chefs to take-out goodie bags.41 Formula One provides an example of premium hospitality offerings in its Paddock clubs, engaging with social influencers, celebrities, and brand partners.42 As sports organizations renovate and build new stadiums, hospitality spaces can also be used more flexibly, allowing for hosting of different types of events.
Sustainability
New sports infrastructure projects are increasingly incorporating sustainability principles into planning. In the case of sports-led regeneration projects, having a focus on sustainability can help unlock public funding elements by demonstrating positive environmental and social practices.43 While there are community benefits to sustainability, incorporating these elements into infrastructure can also help reduce negative impacts and can become benefits over time, including reduced energy bills. Simultaneously this can improve brand affinity, which can lead to more partnership opportunities and fan engagement. The sports industry is heavily intertwined with climate change as both a contributor and an affected party. Two of the largest contributors to global carbon emissions are large construction projects and transportation,44 both of which new stadium developments will contribute to. However, sports are also feeling the consequences of climate change as heatwaves and other extreme weather conditions may negatively affect competitions, host locations, and athlete welfare.45
As sports organizations consider these real estate development projects, careful thought around sustainability practices and strategy should be integrated into planning conversations.
Bottom line
Sports organizations across the world are looking to infrastructure development to help increase capacity and enhance the lifetime value of their fans. For private investors and owners, stadium districts can provide an opportunity to diversify revenue, capitalize on stadium usage year-round instead of solely on game days, and contribute to enterprise value. Digital touchpoints can also provide the organization with enhanced fan data, to be able to better personalize and target products.
For public investors and governments, contributing to the development of sports infrastructure projects can contribute to broader community benefit. Sports organizations can work to foster a sense of community, improve health and well-being outcomes, and attract tourist foot traffic.
Elite sports46 have emerged as a powerful catalyst for economic and social growth, which can align public and private investment agendas. In the near future, organizations could use their stadiums to help breach the boundaries of sports, entering into wider entertainment and digital offerings.
