Stefan Borson: Crystal Palace owners could bankroll redevelopment after big news confirmed

Crystal Palace need to find the right balance in their plans to redevelop Selhurst Park to ensure they don’t build up too much external debt.

That is the view of finance expert Stefan Borson, who exclusively told Football Insider it will become a question of how much equity Palace’s owners want to put in.

Croydon Council confirmed on 16 August it has granted the south London club planning permission to build a new glass-fronted Main Stand at Selhurst Park.

The development will take the number of seats in the stand from 5,200 to 13,500, ensuring the stadium’s capacity will rise to more than 34,000.

Crystal Palace have right owners to find necessary balance

Borson believes Palace have the right people in charge to find the necessary balance as the club continues to modernise Selhurst Park.

“You have got to get the balance right,” Borson told Football Insider.

“The first thing is, remodeling a historic stadium in London is an expensive business. They have got to make sure they can make that work and be able to fund it.

“They are not a club that will be able to support huge levels of external debt and, therefore, it becomes a question of how much equity do the existing owners want to put in.

“Those sorts of projects are really tricky for a team like Crystal Palace if they are going to do an expensive Tottenham or Manchester City-type build.

“I think what’s more likely is they will just have to do something that is a more cost-effective build in the style that we used to have in this country.

“We used to build stadiums for a fraction of the £800-900million that it’s going to cost to build the new Everton stadium.

“What we have ended up doing is building Rolls-Royce stadiums and that’s fine if you can afford it, but not everybody can and it doesn’t suit every club.

“That’s what they will be grappling with right now, getting that balance right between the investment and the return.

“But they have got a smart bunch there, so I think they are well capable of figuring out what that balance is and what the potential is for Crystal Palace.

“Clearly, to compete you need to develop the stadium, such that it can hold more fans and be used on more days away from just 20 matchdays.

“That’s going to be their focus, but it’s all about cost and how you get that balance right.”

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