In a show of financial strength and stability, chief executive Ian Ayre has spoken about the long term prospects of Liverpool Football Club and owners Fenway Sports Group in the most recent issue of “FC Business” magazine.
Having already begun the £100+ million construction project expanding Anfield, which will increase general seating capacity by 4,000 and corporate seating by 4,500, Ayre claims this will generate a revenue boost of about £25 million annually.
In the article Ayre explained, “The large corporate increase means we will pay the debt back quickly and not be saddled with debt, while quickly increasing revenues into the playing squad.”
Avoiding the controversy of renaming the iconic ground through sponsorship, the club hopes to secure more modest sponsorship for naming rights to the improved Main Stand. The club estimates a potential boost of £5 million per year, but Ayre stressed, “It is not just a question of how much a deal is worth, but more about which deal would allow the club and partner to enjoy the most benefit.”
The current club’s growth would be the first of a possible two phases that would eventually give Anfield 59,000 seating capacity. This renovation project and increase in capacity would make Anfield eligible to host major European matches.
The second phase is yet to be finalised. However, the club’s commercial strategy for the expansion and revenue increases have been designed to manage the costs and maximise the return on investment for potential reinvestment into the club’s long term success.
Some reports have questioned Fenway Sports Group’s commitment and future as owners. The idea being that the ownership is merely reducing cost and debt costs to potentially make the club a more appealing sale.
However, Ayre claims dismissively, “The owners are going the other way with their huge show of intent and investment,” referring to the interest free loan the ownership group has provided to manage costs that have hamstrung other clubs during major capitol investments.
A further sign of commitment by ownership might be the timing of the information’s release and a robust financial outlook. During the busy January transfer window Liverpool continues to look for ways to lure top talent to the historic club clawing back into the European elite.
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