Drinking in the Stands
The Prime Minister, Andy Burnham, has indicated that the ban on drinking alcohol in football stands could be lifted or at least trialled, bringing football into line with rugby and cricket.
For many football supporters, this may sound like a long overdue change. For pubs operating near football grounds, however, it raises an important business rates question.
If supporters are allowed to drink in the stadium while watching matches, what impact will this have on nearby pubs that traditionally rely on pre-match, half-time and post-match trade?
A Potential Material Change in Trading Conditions
Business rates are based on the assessment of rental value. For many pubs located close to football grounds, matchday trade forms a significant part of their overall performance.
A policy change that diverts customers away from local licensed premises and into the stadium itself could fundamentally alter trading patterns.
In some locations, pubs may lose:
- Pre-match food and drink sales
- Matchday drinking trade
- Post-match custom
- Event-related income associated with football fixtures
Where this reduction is significant, there may be grounds to argue that the property’s Rateable Value no longer reflects the reality of the market.
Could This Lead to a Business Rates Reduction?
Possibly.
Each case will depend on its own facts, location and trading evidence, but businesses affected by changes in their locality can sometimes seek amendments to their Rateable Value through the Check Challenge Appeal process.
Evidence may include:
- Historic trading information
- Matchday sales comparisons
- Changes in customer behaviour
- Distance from the stadium
- The availability of alcohol sales within the ground
The stronger the evidence of a direct impact, the stronger the potential case.
We Are Monitoring Developments
At present, no nationwide change has been implemented. However, the comments from the Prime Minister suggest that the issue is being actively considered and may be trialled in future.
Pub operators located near football grounds should start considering how any future changes might affect their businesses and ensure that trading information is retained and monitored.
Get in Touch
If you operate a pub, bar, restaurant or licensed venue close to a football stadium and are concerned about the impact of allowing alcohol sales in the stands, RH&L would be pleased to review your circumstances.
We can assess whether there is a potential business rates argument and advise on the evidence that should be retained if future changes affect your trade.
To discuss your situation, contact RH&L Limited for an initial assessment.
