Liverpool Football Club recently marked a significant milestone in the redevelopment of Anfield Road.
The project, aimed at adding 7,000 seats to the stadium, bringing the total capacity to 61,000, faced setbacks due to the collapse of the construction company initially engaged, which led to a temporary halt in the work.
The club swiftly brought in a new construction firm, Rayner Rowen, to resume and complete the project.
While progress is visible, the upper-tier seating installation signifies a step toward the eventual full opening, expected in early 2024.
However, due to necessary safety checks and certifications, the upper tier will remain closed until at least the end of the year.
This redevelopment is a significant part of the club’s expansion plans under the ownership of Fenway Sports Group.
The group recently secured investment from Dynasty Equity, relieving the club of bank debts accrued through various projects, including the Anfield Road End redevelopment, the AXA Training Centre construction, and the repurchase of Melwood for the women’s teams.
The increase in stadium capacity, including the Main Stand redevelopment in 2016 and the ongoing Anfield Road End project, is anticipated to elevate matchday revenue, aiming to exceed £100 million within the next couple of years.
When FSG took over Liverpool, they deliberated between staying at Anfield or pursuing a new stadium.
They ultimately chose to remain at the historic ground and opted for extensive redevelopment to maximize revenue potential.
The increase in revenue for Liverpool Football Club
Over the last decade, matchday revenue has more than doubled, primarily due to an 18% capacity increase and strategic enhancements in the stadium’s offerings.
Following the completion of the Main Stand in 2016, matchday revenues soared, showing a 39% increase.
Liverpool are poised to join the ranks of clubs generating over £100 million in matchday revenue, a league currently led by Manchester United and Tottenham Hotspur.
Concerts, like those featuring the Eagles, the Rolling Stones, and Elton John in 2022, have contributed to revenue generation.
Despite the absence of concerts in 2023 due to the construction, the stadium plans to return to hosting events in 2024, welcoming global pop icon Taylor Swift for three sold-out nights, further leveraging Anfield’s status as a world-class venue.
Speaking at the Sportico Invest in Sports conference in New York, Sam Kennedy, a prominent figure within FSG, emphasized the significance of Anfield beyond being just a football stadium.
He highlighted its deep-rooted value in the community, serving as a place where generations have formed connections and cherished memories unique to the sports world.
Recognizing the initial lack of premium offerings, food and beverage options, and overall game-day experience upon their arrival, Kennedy discussed the previous idea of a shared stadium for both Liverpool and Everton, dismissing it as impractical considering the complexities of global football dynamics.
FSG opted to follow a similar approach to their work on Fenway Park: preserving and expanding Anfield.
Through significant investment totaling hundreds of millions of pounds, they’ve revamped the stadium, including the completion of the Main Stand and the ongoing development of the Anfield Road stand.
Managing a project from thousands of miles away prompted the establishment of commercial offices in Liverpool and London to oversee the process.
Although matchday revenue, while essential, falls behind media and commercial revenues, it significantly impacts Liverpool’s ability to invest in their on-field product.
The ongoing expansion aims not only to meet ticket demand but also to add substantial long-term revenue.
However, given the challenges in further capacity increase, the club might explore additional developments surrounding the stadium, akin to the Fenway Corners project in Boston, to bolster the club’s value proposition in the future.
