Liverpool could stand to make an additional £10m per year from the expansion to the Anfield Road stand, according to James Pearce.
The journalist, who is regarded among the most reliable sources of inside knowledge on the club, was addressing supporters’ queries in a mailbag column for The Athletic when he was asked about the financial benefits that the redevelopment could have.
The addition of 7,000 extra seats will take the capacity of the Reds’ stadium to 61,000, with the works being financed by money which was already available to LFC rather than needing to rely on borrowing.
Pearce outlined: “The £80million ($97m) cost of the Anfield Road redevelopment is being spread out. The recently published accounts for last season showed that total investment in tangible assets for that period was £23.4m. I’d expect to see another sizeable chunk of the cost in the next set of accounts.
“Liverpool are using their existing banking facilities to pay for it rather than what happened with the new £110m Main Stand in 2016 where FSG provided a low-interest loan which is being gradually repaid. The outstanding balance for that currently stands at £71.4m.
“In terms of how much extra the new stand will generate per season, it’s obviously heavily linked to how far Liverpool go in the various cup competitions. Last season’s record matchday revenue (£87million) was so high because they had so many home matches.
“But with 7,000 extra seats from the start of next season taking capacity to 61,000, it’s reasonable to think they will generate an extra £7m to £10m per year.”
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With Liverpool facing the prospect of missing out on the Champions League for the first time in seven years, the Anfield Road expansion could be coming at an opportune time for the club.
If the Reds are to be denied the lucrative revenue which comes from partaking in Europe’s premier club competition, the potential £10m windfall from the stadium’s increased capacity should offset a significant portion of the former amount.
As Pearce referenced, the scope for earnings from Anfield’s redevelopment could be improved if Jurgen Klopp’s side enjoy prolonged cup runs with regular home draws.
That’s something we couldn’t bank on this season, having been hosts only twice in the domestic knockout competitions and four times in Europe, compared to 11 matches across all of those tournaments in 2021/22.
However many home matches Liverpool have next term, and whether or not they qualify for the Champions League, the twice-yearly rush in members’ ticket sales suggests that filling the extra 7,000 seats – and the revenue to be yielded from same – won’t be an issue.
£7-10 million a year for something costing £80m to build, so 8-11.5 years to pay the stadium fee back before any interest plus the £71.4m still owed on the previous stand… so £151.4 million to pay back at an extra earning of £14-20 million a year for both stands, will still take another 7-11 years to pay it off. Meaning for the next 7-11 years we’ll buy cheap players and not challenge again for a decade. When will FSG and Henry Learn? If you want to earn big money from premier league you have to invest big money