Liverpool expect to new stand to generate €25m per season

Liverpool expect to generate an extra £20million (€25m) per season from the new main stand at Anfield and will fund the £114m (€145m) cost of the project with an interest-free loan from Fenway Sports Group (FSG), the club's owners.

New financial details of the planned redevelopment of Anfield emerged as it was confirmed Carillion, the appointed contractors, will take over the construction site on Monday and commence work on the stand early next year.

The new 20,000-plus capacity building is due to be completed by summer 2016 and will increase Anfield’s overall capacity to around 54,000.

Liverpool are spending £75m (€95m) on the construction of the stand but the overall cost, including the acquisition of land, will be around £114m (€145m). The interest-free loan provided from FSG’s cash reserves is scheduled to be repaid over the relatively short timeframe of five to five-and-a-half years.

Corporate hospitality will feature heavily in the new main stand with the number of hospitality seats rising from the current 3500 to 7000. Corporate boxes will mirror similar facilities in the Centenary Stand on the opposite side of Anfield and the top tier will be the reserve of hospitality lounges.

The development begins amid a backdrop of protests over rising ticket prices by Liverpool supporters, with more planned for next week's crucial Champions League game against FC Basel, but chief executive Ian Ayre has defended the amount of corporate facilities in a redeveloped Anfield.

Liverpool earned £45m (€57m) from match-day revenue during the 2012/’13 season, compared to Manchester United’s £109m (€138m), Arsenal’s £93m (€118m) and £71m (€90m) at Chelsea. The club anticipates an extra £20m (€25m) per season from the new main stand at Anfield and revenue will increase further should Liverpool proceed with plans to redevelop the Anfield Road stand.

Planning permission has been granted for the second phase of the stadium redevelopment but FSG will only proceed on Anfield Road if it proves economically viable.

‘Corporate hospitality’

“I don’t think there’s a football club in the country who could afford to spend money on a new stand without the assistance of corporate hospitality. It pays,” said Ayre. “It will probably pay two thirds or more of the payback of this facility and that is a fact of life. You can’t find economic solutions that work in big new stadiums that don’t have corporate.

“We will still be some way behind the corporate hospitality numbers they have at Old Trafford and probably around the same sort of level they do at Arsenal. That feels right for the model we have created.

“The overall percentage of corporates when we finish will not be that dissimilar from today. We are increasing capacity and keeping the corporate seats in line as a percentage. We know the demand is there for both.

“Driving prices in those corporate areas helps. People often point at the corporate fans and say they are not real fans or whatever, but the reality is they make a huge contribution to the football club and keep ticket prices at the level they are. Without them, the revenues would be much smaller and if other costs were at the same level, everybody else would get hit in some form: sponsors, general admission prices, everyone.”

Liverpool have held initial talks with potential naming partners for the new main stand and for areas within the development. It is expected the main naming partner would pay around £10m for a long-term deal.

The club has not decided how non-corporate seats in the main stand will be divided, although a large proportion will go to those on the season-ticket waiting list.

There will be minimum disruption at Anfield during construction work as Carillion are building up and behind the existing main stand before connecting the two structures under one roof.

‘No disruption’

Once completed, Anfield will still not qualify as a venue for major Uefa events such as Champions League finals due to the size of the pitch. That would be addressed, however, if the proposed Anfield Road redevelopment went ahead.

Ayre added: “With this solution and the economics around it we plan to continue to invest in the team. We can’t make guarantees in football but we have set this up to make sure the construction has no disruption on attendances while we continue to invest in the team.” Guardian Service