PSV has said it will push on with plans to expand Philips Stadion after a study concluded that its current home is the Dutch Eredivisie football club’s optimum base in Eindhoven.
PSV in October appointed the Hypercube agency to assess its stadium options. PSV has played at Philips Stadion, which is owned and operated by the club, since 1915, but the facility, with its capacity of around 35,000, is no longer large enough to meet future ambitions.
The appointment of Hypercube, which specialises in the sports and mobility sectors, was disclosed during the presentation of PSV’s annual financial report and the club yesterday (Tuesday) detailed the agency’s findings.
In what has been a broad analysis of PSV’s current position and future ambitions, Hypercube has concluded that Philips Stadion, located in the heart of Eindhoven, remains the best place for the club.
Based on factors such as the location of fans and demographic trends, it has been determined that the current site is the optimal base. The potential for fanbase growth in the downtown area is said to increase by about 5% through 2030 and 10% through 2040.
“We are very happy with the outcome about the best location,” said Marcel Brands, PSV’s general manager. “We are going to take many recommendations with us. We now know what is possible. It’s up to us to determine what we want to make true.”
PSV’s growth potential has been deemed to be largely determined by the catchment area. By making changes to the stadium, the report has said the sporting/financial catchment area can be increased. The condition for this is that there is sufficient growth potential to be achieved in the catchment area so that the costs incurred are also recovered.
The study states that the location and possible expansion of the stadium are a means to help achieve the club’s ambitions. PSV currently has a waiting list of 10,000 applicants for a season ticket. The club states that now the potential has been mapped out, the next phase can begin. With the cooperation of external consultants, a cost calculation is being drawn up for a stadium expansion of around 10,000 seats. In addition, technical feasibility is being mapped out.
Hypercube’s findings have also been supported by Eindhoven City Council. “PSV and the municipality of Eindhoven will act together in the explorations, as the Philips Stadium and its surroundings are an essential part of the city and area development,” said Stijn Steenbakkers, Alderman for the Brainport technology region and Spoorzone Eindhoven.
“We are pleased that the study shows that this is the best location for the stadium and that the PSV management also embraces this. We support this. PSV and the Philips Stadion – they belong to Eindhoven and the middle of our city. It gives Eindhoven and the Brainport region atmosphere and reputation.
“Moreover, the Philips Stadion is right in the middle of the railroad zone, an area where many towers are going to appear in the next few years, amenities will come and many more people will live. The location contributes greatly to the vibrancy of the entire centre. In addition, PSV Avenue, along the railroad, has great potential as a corridor between the centre and Strijp S and T.”
Ahead of the launch of the study, PSV was said to have wanted to retain its current location, in the centre of Eindhoven, but a move to another site hadn’t been discounted. Club officials indicated that PSV was looking at expansion options because the club is at its maximum potential in terms of revenue generation.
PSV recorded a net profit of €13m (£11.1m/$13.8m) for the 2022-23 financial year, mainly due to a positive player trading result of €33m. Turnover passed the €100m mark for the first time in a year when no UEFA Champions League football was played. The club said this was mainly due to the growth in commercial, merchandise and ticketing revenue.
Hypercube has concluded that Brainport is a suitable and sustainable partner for further expansion in the coming years. Brands added: “There are limits, but we would like to push them, for example by overperforming.
“However, you can’t beat the market structurally, but you can enlarge it by expanding the stadium. The Brainport region is top, but not London or Paris in terms of catchment area. Looking ahead is important. What level of ambition should PSV have? Where do we stand in this landscape?
“We want to radiate ambition and our RVC (supervisory body) challenges us in that. We share the same vision. By that I am not saying that tomorrow we will expand the stadium to 45,000 seats. There are still many steps to take before that.”
