Liverpool chief executive Ian Ayre reveals Anfield Road redevelopment cost - says club are open to supporter investment
BY ANDY KELLY
Ayre says FSG looking for a solution to funding the revelopment of Anfield Road end
Liverpool CEO Ian Ayre Peter Byrne/PA Wire
Liverpool chief executive Ian Ayre has put a cost of £60m - £70m on the club redeveloping the Anfield Road end of the ground to bring capacity towards 60,000..
But the Reds supremo described a possible 15 year repayments required to finance the extra 6,000 seats as “not a smart investment for the business.”
Ayre said the club needed to find “a rounded solution” but left open the possibility of supporters investing in a proposal to extend the ground.
The Anfield Road has become an issue for supporters following the successful launch of the extended Main Stand earlier this season which has taken Anfield’s capacity to 54,074.
Outline planning permission to extend the Anfield Road is already in place but Ayre told a meeting of the Liverpool Supporters’ Committee that the Anfield Road brought more challenges financially.
Liverpool owner John Henry suggests ticket 'issue' may put further Anfield expansion at risk
Ayre, who will leave Anfield at the end of this season, said: “ A stand behind a goal doesn’t have the benefit of hospitality that would go a long way to meet the redevelopment costs.
“If you consider the redevelopment of Anfield Road from a purely General Admission perspective, building, say, 6,000 extra seats to take the capacity up to 60,000 would cost somewhere between £60m and £70m.
“At £12,000 to £13,000 per seat, it would take approximately 15 years to pay back, which is not a smart investment for the business. Therefore the Club needs to find a rounded solution that’s in the best interests of the football club.”
That £12,000 per seat equates to the current cost of season tickets at roughly around £800.
In the minutes of the meeting which was held after the opening of the Main Stand, Ayre added that “the Club’s objective was always to build and open the main stand. From the outset, the Club did not want to set deadlines or promises it failed to keep.”
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He suggested that LFC now needs a period of time “to ensure that what it has put in place works, and in tandem continue with plans for Anfield Road”.
“However, as with the Main Stand, the Club has to find the right economic model, and only then will it be the right time to move forward,” he added.
The prospect of supporter involvement was raised by Graham Smith, a representative for Merseyside based supporters on the committee.
Mr Smith said: “There are people who would think a 15-year return would make sense, and that’s the supporters. The supporters would fund such a development upfront if the Club made an appeal for financial support.”
He added that he was of the view with the right relationship with investors, the £60m, or whatever the figure needed was, could be raised.
In response, Ayre said while he that was not in a position to speak for the owners or their plans, it was an interesting proposition and one worth looking at.
“We should have that conversation,” he added.
Liverpool owner John Henry made headlines late last month after appearing to suggest that fans’ desire for affordable tickets was “an issue” for the further redevelopment of Anfield.
Speaking to AP in New York, he said; “I don’t know if there is a next step because ticket prices are an issue in England. That may foreclose further expansion. We’ll have to see.”
That was taken by some supporters as a reference to the supporter protest of February this year when a 10,000 plus walk out of fans during the Sunderland game led to a change of heart by the ownership over some higher prices linked to the new Main Stand.
The extra 8,500 seats in the expanded Main Stand include roughly half as hospitality, which is worth more in financial terms to the club.
It is expected that the £120m interest free loan provided by FSG to pay for the work can be repaid with five to six years.
BY ANDY KELLY
Ayre says FSG looking for a solution to funding the revelopment of Anfield Road end
Liverpool CEO Ian Ayre Peter Byrne/PA Wire
Liverpool chief executive Ian Ayre has put a cost of £60m - £70m on the club redeveloping the Anfield Road end of the ground to bring capacity towards 60,000..
But the Reds supremo described a possible 15 year repayments required to finance the extra 6,000 seats as “not a smart investment for the business.”
Ayre said the club needed to find “a rounded solution” but left open the possibility of supporters investing in a proposal to extend the ground.
The Anfield Road has become an issue for supporters following the successful launch of the extended Main Stand earlier this season which has taken Anfield’s capacity to 54,074.
Outline planning permission to extend the Anfield Road is already in place but Ayre told a meeting of the Liverpool Supporters’ Committee that the Anfield Road brought more challenges financially.
Liverpool owner John Henry suggests ticket 'issue' may put further Anfield expansion at risk
Ayre, who will leave Anfield at the end of this season, said: “ A stand behind a goal doesn’t have the benefit of hospitality that would go a long way to meet the redevelopment costs.
“If you consider the redevelopment of Anfield Road from a purely General Admission perspective, building, say, 6,000 extra seats to take the capacity up to 60,000 would cost somewhere between £60m and £70m.
“At £12,000 to £13,000 per seat, it would take approximately 15 years to pay back, which is not a smart investment for the business. Therefore the Club needs to find a rounded solution that’s in the best interests of the football club.”
That £12,000 per seat equates to the current cost of season tickets at roughly around £800.
In the minutes of the meeting which was held after the opening of the Main Stand, Ayre added that “the Club’s objective was always to build and open the main stand. From the outset, the Club did not want to set deadlines or promises it failed to keep.”
READ MORE
Liverpool fans split over John Henry's Anfield comments
He suggested that LFC now needs a period of time “to ensure that what it has put in place works, and in tandem continue with plans for Anfield Road”.
“However, as with the Main Stand, the Club has to find the right economic model, and only then will it be the right time to move forward,” he added.
The prospect of supporter involvement was raised by Graham Smith, a representative for Merseyside based supporters on the committee.
Mr Smith said: “There are people who would think a 15-year return would make sense, and that’s the supporters. The supporters would fund such a development upfront if the Club made an appeal for financial support.”
He added that he was of the view with the right relationship with investors, the £60m, or whatever the figure needed was, could be raised.
In response, Ayre said while he that was not in a position to speak for the owners or their plans, it was an interesting proposition and one worth looking at.
“We should have that conversation,” he added.
Liverpool owner John Henry made headlines late last month after appearing to suggest that fans’ desire for affordable tickets was “an issue” for the further redevelopment of Anfield.
Speaking to AP in New York, he said; “I don’t know if there is a next step because ticket prices are an issue in England. That may foreclose further expansion. We’ll have to see.”
That was taken by some supporters as a reference to the supporter protest of February this year when a 10,000 plus walk out of fans during the Sunderland game led to a change of heart by the ownership over some higher prices linked to the new Main Stand.
The extra 8,500 seats in the expanded Main Stand include roughly half as hospitality, which is worth more in financial terms to the club.
It is expected that the £120m interest free loan provided by FSG to pay for the work can be repaid with five to six years.
