Premier League clubs are set to be hit with higher tax bills on their stadiums next year, with Manchester United and Arsenal among those expecting to be hit the worst.
Per Independent and analysis of government data, valuations of stadiums across England and Wales have been subject to a major increase, impacting rates due in 2026, and Old Trafford and the Emirates Stadium could cause the steepest rises.
Rates bills to skyrocket across the Premier League
In November's budget, the government confirmed that new business rates payments for commercial properties, including football stadiums, will be based on a new reduced multiplier and new valuations made in 2024.
Despite the decrease in multiplier, changes for 2026 are set to hurt most clubs in the top flight given majorly increased valuations of their home grounds.
As reported by Independent, Ryan Tax firm's analysis of Valuation Office Agency data uncovered that the rateable valuation of stadiums across England's top five divisions had increased by 25% to around £111.7m.
Rates will only continue to increase too, with transitional relief caps, put in place to ease the initial rises, fading out in the coming years.
Alex Probyn, Europe and Asia-Pacific practice-leader for property tax at Ryan, told Independent: “Football stadiums are valued using the receipts and expenditure method, which is driven entirely by income and operating performance.“
“The last revaluation was based on April 1 2021, when grounds were still shut with full-capacity crowds not returning until July 2021.”
“The new list reflects the position on April 1 2024, with stadiums fully open and commercial revenues significantly higher, so the increases we are seeing are exactly what the methodology produces.”
How much will changes impact Arsenal and Manchester United?
Arsenal are set to be hit the hardest of any English side due to the increase in the Emirates Stadium's valuation, rising up to £11m, leading to a £1.1m increase in their rates bill up to £4.8m.
Manchester United are also badly hit by the changes, with the Red Devils' rates bill set to climb by £973,840 up to £5.79m.
While the Tottenham Hotspur Stadium will see a smaller rise than its rivals, the North London outfit still face the highest rates bill in the Premier League of upwards of £5.8m.
Other Premier League clubs hit by the budget announcements include Brentford, who saw its GTech Stadium valuation increase by 300%, and Nottingham Forest, with the City Ground's value rising by over 150%, while Wolves and Burnley were the only top-flight sides to see valuations fall.
FGG says: Rates hikes bound to hit smaller sides
While it is the Premier League's largest and most successful clubs seeing the biggest rates burden, raises across the board, other than for Burnley and Wolves, ultimately may hurt the division's smaller sides the most.
With the financial gap within England's top flight continuing to grow, the big six have the resources to better deal with increasing costs, while those down the table, and particularly lower-league clubs, will be squeezed further without a clear matching increase in income.