Tottenham Hotspur’s new £1 billion football stadium is the most valuable football stadium of any English football club, for tax purposes, having now been given the highest Rateable Value, which determines how much business rates will be paid to the local Council, handing Haringey Council and The Greater London Authority a tax windfall.
Spurs’ played Crystal Palace on 3rd April, the first ever match at the new Tottenham Hotspur Stadium with the Valuation Office Agency, an executive agency of HMRC, handing the stadium a rateable value of £7.19 million backdated to that game.
The redevelopment of White Hart Lane has seen its rateable value soar nearly 200% from £2.46 million leapfrogging arch rivals Arsenal into first place according to Altus Group.
Manchester United’s Old Trafford has the third highest rateable value at £6.09 million whilst Villa Park, the home of Aston Villa newly promoted to the Premier League, are ninth in the list with a rateable value of £2.87 million.
Sunderland, who narrowly missed out on promotion to the Championship from League One, are eighth in the list.
Under the terms of West Ham’s £2.5 million per year concession agreement for the London Stadium, E20 who manage the stadium pay close to the full business rates, with West Ham just picking up the tab for the retail and office spaces they exclusively use amounting to a total rateable value of £546,125.
Tottenham’s final game at the old White Hart Lane was played on 14 May 2017 with a 2–1 victory against Manchester United after which its rateable value was reduced to nothing as a stadium undergoing reconstruction.
Without the redevelopment, Spurs would have paid £1,196,357.91 in business rates for 2017/18 but, with the £1 billion redevelopment, and its increase in rateable value, the club has seen its tax bill soar to £3,746,972.24 for 2019/20 up £2,550,614.33 according to Altus Group.
London retains 75% of the growth in business rates income in 2019/20 under a Government deal handing Haringey Council and The Greater London Authority a tax windfall.
The new stadium which has a capacity of 62,062, making it one of the largest stadiums in the Premier League and the largest club stadium in London, is now valued for business rates even higher than the National Stadium at Wembley which has a rateable value of £7.08 million.
Robert Hayton, who is Head of U.K. business rates at Altus Group, say football grounds are “a complex area for valuation” adding that Spurs’ new valuation would be a “hypothetical estimate pending realisation” saying: “Rateable Values for football stadia and grounds are calculated using gross receipts – rather than local property values based on what league the club play in at the relevant AVD (Antecedent Valuation Date). Historically the financial success or otherwise of a club closely follows its performances on the field but in recent times the ability to attract a wealthy financial backer has been just as important in a clubs ambition to grow ”.
The assessment is made using a fixed date AVD of 1 April 2015 for business rates bills between 2017 and 2021.