Passion and new stadium could take Gateshead Football Club to league

Jan 6 2010 by Peter McCusker, The Journal

Waites, managing director and founder of Gateshead-based print and marketing firm NB Group, says: “When Gateshead were last in the Football League they used to attract similar crowds to Darlington and Hartlepool and gates regularly exceeded 10,000.”

“Three years ago we struggled to attract 200 people to games but we’re now averaging close to 700. In League Two and with the benefit of a new purpose-built stadium in a prime location, we would hope to attract at least 2,000. In fact I think that is a conservative estimate and we should be up nearer 3,000.”

“There’s no doubt that Newcastle United and Sunderland will continue to soak up the majority of support in the region but there is a growing sense of independence in Gateshead and we’re sure that this will rub off on the town’s football club.”

“We’ve no doubt that attendances will benefit from the stadium’s proximity to the town centre and transport interchange and we’ll have a large catchment area within walking distance of the ground.”

Building football stadiums is an expensive business and Wood, who was previously vice chairman of Sunderland Football Club, has experience of the process having had input into the creation of the Stadium of Light which was originally a 42,000 seat stadium built at a cost of around £25m.

“We want to create a 6,000 all-seat stadium in the long run, which at the Stadium of Light rates of close to £600 a seat would cost us £3.5m”, says Wood

“At first stage we will only put in 2,000 seats and the rest of the ground will be standing, which will give us an initial overall capacity of 9,000 and will easily exceed the criteria for Football League membership.

“The final cost will depend upon the specification. We’ll be looking to maximise all of the grants available for this type of development but will clearly need to use the collateral from some of the leases to complete the funding.

“Wherever possible, the stadium will be constructed using materials from sustainable resources and the provision of utilities will also be sourced with sustainability in mind. The initial seated part of the stadium will be in the east stand, with the ground and first floors being used for football and other leisure activities such as a social club, community facilities and a club shop. The second and third floors and free standing buildings at each end of the stand will house the lettable space.”

Commercial property expert Bill Naylor, managing director of Naylor’s chartered surveyors of Newcastle, said the rates Wood would be asking for the lettable space, which equate to around £15 per sq ft, should be achievable in such a location.

“The maths certainly stack up. It’s feasible and I wish them luck. I think the key to this type of deal is the quality of the tenants.”

“If they get the right tenants they should be able to get a pension fund to take the leases and at a yield of around 6% this could provide them with around £8m cash to work with.”

Wood added: “The International Stadium is away from the town centre and is surrounded by business premises which are empty at match times. It’s ideal for track and field athletics but lacks the atmosphere of a football ground.”

Wood, who made millions of pounds from the sale of his US-based boiler business over 10 years ago, believes the club can become financially sustainable in much the same way that Warrington Wolves Rugby League Club has.

He added: “Warrington are my inspiration, They have found the right model to make this type of development work. Our biggest money spinner, like Warrington’s, will be the lettable space.”

Wood has agreed to buy the land on which the stadium will be developed for £260,000, depending on planning permission being approved, and he is prepared to take his personal spending “north of £2m” to progress the ambitious plans.

He concluded: “This stadium development and hopefully the return of Gateshead to the Football League will be my legacy to the club and the town.

“I believe we can create something that will be sustainable for at least the next 50 years.”