Football Stadium Business Rates to Soar in 2026 Revaluation

The receipts and expenditure (R&E) valuation method, along with the post-pandemic recovery and league status changes, has played a major role in the significant increase in stadium valuation.  

The 2026 draft local rating lists reveal a significant financial shift for professional football stadiums across England and Wales. A 25% combined increase in rateable value (RV), from £89.08 million in 2023 to £111.74 million for the 2026 list, is set to impact clubs across all divisions, with Wrexham posting the highest increase in rateable value at 612%.

This article explores the core reasons behind this dramatic rise and outlines the critical steps stadium operators should take to manage its financial impact.

Understanding the Valuation Method: Receipts and Expenditure (R&E)

Football stadiums lack a conventional rental market, so the Valuation Office Agency (VOA) employs the R&E method to determine their rateable value. This approach assesses the property's value based on its potential income, not the financial health of the occupying club.

The VOA analyses a wide range of factors, including:

  • Gross income: Matchday receipts, hospitality, non-matchday events, tours, retail, and commercial rights.
  • Operating costs: Staffing, pitch maintenance, utilities, repairs, and safety compliance, as well as business rates (operating expense that must be accounted for in arriving at the divisible balance).

Divisible Balance

After deducting costs, the remaining surplus—the “divisible balance”—is split between the “occupier's share” (risk, reward, and profit) and the “landlord's share,” which becomes the RV.

The RV represents the hypothetical rent a tenant would pay for the property. This is why a club in financial difficulty could still see its stadium's rateable value increase if the property itself has high earning potential.

Why Are Valuations Increasing So Sharply?

The primary driver for the 2026 revaluation surge is the shift in the antecedent valuation date (AVD), the fixed date on which values are assessed.

From Pandemic Lows to Commercial Highs

2023 Rating List (AVD: 1 April 2021): This valuation was based on a period when stadiums were closed at the 2023 AVD. Income from matches was at a historic low, which artificially depressed the 2023 rateable values.

2026 Rating List (AVD: 1 April 2024): In stark contrast, this new AVD reflects a period of full commercial recovery. Stadiums were operating at full capacity with record attendances, strong hospitality performance, and expanded non-matchday event schedules. This powerful rebound in income feeds directly into higher rateable values under the R&E method.

The Impact of League Status

A club's league status at the AVD is a crucial factor. The valuation captures the income profile at that specific moment, not the club's current standing.

Promotion before April 2024: A club promoted to a higher division before the AVD would have seen increased broadcast income and matchday revenues, which are capitalised into a higher 2026 RV. This is evident in the large percentage increases for clubs like Brentford (+300%) and Nottingham Forest (+153.4%).

Relegation before April 2024: Conversely, clubs relegated prior to the AVD would have shown lower income, leading to a reduced RV. Watford recorded the largest RV fall-down, at 70.8%, reflecting their relegation from the Premier League in May 2022.

The most valuable football stadiums (RV) in England and Wales remain:

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The Financial Implications for Clubs

While transitional relief will phase in the increases over several years—capping the initial rise to 30% in 2026/27—the long-term impact is significant. Some clubs could still face cumulative bill increases of over 100% during the revaluation cycle.

This makes forward financial planning essential. The underlying rateable value will drive costs for years to come, even after the initial cushioning from transitional relief ends.

The Critical Need for Forensic Review

Given the scale of these increases, it is imperative that every stadium assessment undergoes a detailed and expert review. R&E valuations are complex and built on numerous assumptions that are open to challenge.

Inaccuracies in any of the following areas can lead to a material overvaluation:

  • Income inputs and audited accounts
  • Assumed operating expenses
  • Attendance data and venue utilisation rates
  • Share of divisible balance applied by the valuation officer to RV
  • Failure to strip out non-maintainable income (e.g., exceptional cup runs or one-off events)

“R&E valuations are complex, assumption heavy, and open to challenge. With increases of this scale, clubs should be reviewing every input, every assumption, and every capitalisation rate to ensure accuracy and identify opportunities for material savings.” – Alex Probyn, Practice Leader of European and Asia-Pacific Property Tax

Conclusion: Take Action to Mitigate Risk

The 2026 business rates revaluation marks a profound shift, driven by the post-pandemic recovery and the specific mechanics of the R&E valuation method. The unprecedented volatility in stadium valuations presents a significant financial challenge for clubs and stadium operators.

With bills set to rise sharply, passivity is not an option. An early and forensic review of each stadium’s draft valuation is the most effective way to ensure accuracy, identify grounds for appeal, and secure potential savings. Engaging with specialists who understand the nuances of R&E valuations can uncover errors in assumptions and help protect organisations from paying more than their fair share.