Anfield Redevelopment Underlines Liverpool’s Financial Rejuvenation Under FSG

Ahead of a crucial Premier League title decider against Chelsea this Sunday, Liverpool this week announced their expansion plans for Anfield, while managing director Ian Ayre today credited, via the Telegraph, the role of current owners John W. Henry and Fenway Sports Group in their financial rejuvenation.

Both the Anfield redevelopment announcement and the revelations behind the dire financial situation at Liverpool have not only boosted the feel-good factor around the club, who are five points clear in the Premier League and poised to win their first league title in 24 years, but also highlighted just how important FSG have been in their resurrection.

The Reds now seem a stark contrast to what they were just a few years ago, when Tom Hicks and George Gillett were in constant internal battles with then-manager Rafael Benitez and released plans for a new stadium in Stanley Park that got nowhere, a symbol of their failed reign that disillusioned supporters.

John W. Henry led FSG’s takeover in 2010, which saved the club from administration and that has subsequently transformed Liverpool’s fortunes on and off the pitch.

As Ayre claims that “the club is in a fantastically sustainable position now,” let’s look at just how Liverpool have been rejuvenated financially under the reign of Henry and FSG—and whether this can be sustained going forward.

 

 

Chris Brunskill/Getty ImagesCorporatization of Liverpool as a Global Business

It’s easy to say we were 10 years into a stadium move and it’s about time we are back in the Champions League, but if you think about where we were financially, just because you’re Liverpool it does not mean you have a right to get back up there. There are plenty of teams who could have slipped and slipped, despite new owners, so it’s an unbelievable achievement to get back where we are today. That is testament to the people who invested in it and worked on getting us back there.

Ian Ayre’s proud proclamations of the FSG-led transformation, dipped in bitter memories of the Hicks and Gillett reign, will reverberate around Anfield as a resounding endorsement of the way John W. Henry has run his sports empire.

Joshua Green of Bloomberg.com has encapsulated Henry’s reign at Major League Baseball club Boston Red Sox in a wonderfully revealing article on their baseball dynasty, and similar principles from Henry’s financial and business background have been applied to Liverpool.

The inevitable truth in the sports world these days is that it is becoming more and more of a global business, and Liverpool have, in many aspects, finally caught on.

When looking at models for sustainable growth in world football, perhaps Arsenal is always the go-to club given the building of their new Emirates Stadium and the well-known financial management of Arsene Wenger, but it’s no surprise that Ian Herbert’s column for the Independent draws comparisons with “the kind of machine that the Glazer family have developed at Old Trafford.”

That Manchester United have set up offices around the globe to push their marketing and sponsorship efforts is indicative of their aggressive expansion as a corporation; Herbert writes that their “far-sighted establishment of regional and global corporate sponsorship deals began well over a decade ago.”

This has only recently surfaced at Anfield—though, of course, it is a case of better late than never—with all kinds of backroom appointments boasting titles we would otherwise associate with financial organizations and the business world in general.

Liverpool, who have for years been in the top 10 of Deloitte’s Money League rankings despite missing out on the Champions League, have finally gotten in the sponsorship act and have begun raking in the millions as a result of the commercial push. Their announcement this week of a partnership with US restaurant chain Subway, per the Liverpool Echo, is only the latest chapter in their fast-growing business empire.

 

 

Liverpool FC/Getty ImagesAnfield Redevelopment: Finally Done Right?

When looking to expand the financial income of football clubs, the issue of stadiums will always come into the equation.

After all, gate receipts was the reason behind Arsenal’s decision to move from Highbury to a new stadium, and Manchester United, having expanded Old Trafford over the years, have been raking in a minimum of £3 million every home match since its capacity has come close to 76,000, per ESPNFC.

So it’s no surprise that much has been made over Liverpool’s next step in terms of their stadium: The question was always whether to develop the iconic Anfield, which would have a capacity ceiling due to construction constraints, or to move into their neighboring Stanley Park, which would require massive payments that might hamper their other financial activity, much as Arsene Wenger has experienced.

This Mirror Football article, in light of the new stadium redevelopment announcements, revisited the failed and widely mocked plans for a 60,000-capacity stadium in Stanley Park, which were first suggested in 2002 and then revisited in the Hicks and Gillett reign. They promised a “spade in the ground” within 60 days of their 2007 acquisition of Liverpool, but proved unable to finance the construction project.

By contrast, the £150 million redevelopment currently mooted will cost less than a third of the Stanley Park plans, and will likely eventually take the total seating capacity to 58,000 after expanding two main stands, according to Chris Bascombe of the Telegraph.

Surrounding all the recent fanfare has been the club’s shady policy of “buying up houses around the stadium and leaving them empty, driving the local area into dreadful decline” since the 1990s, which David Conn has uncovered in his revealing Guardian column.

The club apparently “used an agency to approach some residents, while some houses were bought by third parties then sold on quickly to the club. That left residents with the belief…that Liverpool were buying up houses by stealth, to keep prices low,” a tactic that has not gone down well with local residents.

But as Ayre and the club have published their plans publicly and also apparently been in dialogue with the local councils and residents with their Anfield redevelopment plans, the chance is there for FSG and the current hierarchy to redeem errors made in years past and commit to a bright future for the local area and the local community.

The public consultation of fans’ opinions on the Anfield redevelopment, through a public online survey on their official website, is a good start. The right opportunity has finally arrived for FSG to leave a positive legacy in the city of Liverpool, far beyond just bringing the football club back in the green.

 

 

Christopher Furlong/Getty ImagesLooking Ahead to a Promising Future

This week’s announcement of the Subway partnership is the latest sponsorship arrangement Liverpool Football Club have landed in 2014 alone: The likes of Vauxhall and Dunkin’ Donuts all joined the Liverpool corporate partner list this calendar year.

Following the money-spinning and multi-year deals with Standard Chartered Bank and Garuda Indonesia, an airline, Liverpool may even solicit financing for the expansion of the Main Stand via a “lucrative naming rights deal with a major sponsor,” according to James Pearce of the Liverpool Echo. Following Macron’s naming-rights announcement with Championship club Bolton Wanderers, announced this week as well via BBC Sport, naming rights may well and truly have entered the English football mainstream—Arsenal’s Emirates Stadium and Manchester City’s Etihad Stadium are but two famous examples.

For Liverpool, it’s been a story of financial rejuvenation, underlined by Ayre’s comments regarding the long and difficult journey of infrastructure-building at the club since FSG’s takeover:

When I came here seven or eight years ago, there were all these stories of the club shop being closed the day after the [2005] Champions League final [win over AC Milan in Istanbul], and only having a couple of sponsors. Over a long period of time, we have been trying to lay the foundations and build the infrastructure that services a great club like Liverpool.

As the club look to cash in on their successes in the Premier League this season—they confirmed, with their win over Norwich City last Sunday, a lucrative return to the Champions League next season—and continue to bear the fruits of their commercial exploits, their highest-ever annual turnover of £206.1 million this past year will surely be eclipsed considerably in a year’s time.

Add to that the image of the club as a young and energetic force, spearheaded by a visionary young manager in Brendan Rodgers and featuring a host of young stars in the team, as well as the rejuvenated Anfield stadium and surrounding area—confirmed to go through this time—and you have, for the first time in many a season, a healthy outlook for Liverpool Football Club for years to come.

To think that the Reds were “seconds from disaster” before John W. Henry and Fenway Sports Group swooped in for their rescue act.

What a roller coaster it’s been—and long may it continue.

 

This article first appeared on Bleacher Report.

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10 Reasons Brendan Rodgers Could Become Liverpool’s Very Own Sir Alex Ferguson

With three Premier League matches to go, Liverpool are well-placed to win their first league title in 24 years.

Brendan Rodgers has rightly received many plaudits for his work with the Reds this season, having succeeded Anfield legend Kenny Dalglish almost two years ago.

Contrast that with the fortunes of Manchester United, who this week dispensed with David Moyes after a disastrous 10 months at the helm of the Old Trafford club. Moyes’ troubles were not helped by the constant presence of Sir Alex Ferguson, the legendary manager he replaced at the Red Devils.

The pendulum has seemingly swung back to Liverpool after Ferguson established a Manchester United dynasty, with a 51-point swing between England’s two most historically successful football clubs a damning indictment of Moyes’ disastrous reign.

Meanwhile, at Anfield, Rodgers is quietly going about his task with aplomb and could very well become Liverpool’s very own Sir Alex. Here are 10 reasons why.

 

Roots and Origins

Roots and Origins
Dean Mouhtaropoulos/Getty ImagesIn terms of playing career, Brendan Rodgers and Sir Alex Ferguson experienced contrasting fortunes: The former had his career curtailed by a genetic knee condition, while the latter made over 300 appearances in Scottish football as a forward.

Rodgers started his management career in youth football before graduating to senior-level football with Reading and Watford, then found true success with Swansea City. Ferguson, on the other hand, started at East Stirlingshire and St. Mirren before landing an ultimately successful gig at Aberdeen.

It was at Swansea and Aberdeen, respectively, where the two managers found their first tremendous successes: Rodgers brought a Welsh club into the Premier League for the first time ever, while Ferguson gatecrashed the Old Firm duopoly by winning the Scottish league.

Those jobs proved to be stepping stones toward two of the world’s most storied football clubs.

 

Status of Club

Status of Club
Alex Livesey/Getty ImagesWhich brings us to our next comparison: the respective sizes, statures and reputations of their clubs.

That Liverpool and Manchester United are far and away the most successful clubs in English football is evident, though both clubs have had their fair share of ups and downs over the years.

Ferguson was the man to famously “knock Liverpool off their perch,” per Graeme Yorke of The Daily Mail, while Rodgers could be the manager to take advantage of David Moyes’ troubles at United to bring the Reds back to the top of the English game once again.

 

Home Record

Home Record
Alex Livesey/Getty ImagesThat Moyes has been criticized so roundly for his poor home record this season is a testament to the stunning successes of Sir Alex, who was responsible for turning Old Trafford into a fortress and “Theatre of Dreams” most seasons.

Rodgers has based his success this season on his record at Anfield, where Liverpool have only drawn once and lost once in 17 league games. They’ve scored 51 goals, an average of more than three per victory.

No wonder they’re calling it “Fortress Anfield” once again.

 

Man Management

Man Management
Sang TanPerhaps one of the most admirable traits Sir Alex showed during his time at the Old Trafford helm was his man-management technique. He was a no-nonsense manager who didn’t tolerate bad behavior but was also able to contain the personalities and egos of world-class stars.

He dealt with his players with consummate ease, with the underlying principle being that none of his charges could ever be bigger than himself or Manchester United, an approach that Rodgers perhaps referenced when he navigated the Luis Suarez transfer saga last summer.

Rodgers has also made a name for himself as an excellent man-manager and motivator: He has been able to coax improved performances out of Stewart Downing and Jon Flanagan, while Jordan Henderson has become a shining example of how Rodgers can help players develop.

 

Youth Development

Youth Development
Michael Regan/Getty ImagesIn the same vein, Rodgers has proven to be equally adept and eager to blood promising youngsters from the Liverpool academy. Raheem Sterling, Suso and Andre Wisdom broke onto the scene last season, while his current league-topping team is one of the Premier League’s youngest.

Sterling in particular has blossomed into one of England’s most exciting wingers, while Rodgers has unlocked Suarez’s potential and turned him into a 30-goal-a-season striker this year.

Ferguson was, of course, famous for his youth development as well, with his famous Class of ’92 one of the most well-known stories in the modern game. His coaching of Cristiano Ronaldo was a highlight of his reign.

 

Footballing Identity

Footballing Identity
Alex Livesey/Getty ImagesWhile the tactical approaches of Rodgers and Ferguson are quite different, the footballing identities that their clubs have adopted during their reigns have been equally notable.

Ferguson’s iconic successes in the 1990s came from a classic wing-heavy 4-4-2 formation, while his triumphs in the 2000s featured more flexible approaches, but devastating wing play and exciting counterattacks have become synonymous with Manchester United.

His ability to move with the times on the pitch was reflected by his evolving tactical approaches while staying true to an underlying footballing philosophy.

In the same vein, Rodgers has returned Liverpool to their famous pass-and-move roots and instituted a destructive attacking game as well. Not only are the Reds threatening on the counter, but they also keep possession intelligently and can build play patiently.

Rodgers has also shown tactical flexibility in shaping his team according to the strengths of his players, who are now comfortable in a variety of tactical formations as necessary.

 

Influence over the Media

Influence over the Media
Thananuwat Srirasant/Getty ImagesA glaring difference noticed at Old Trafford this season is the way David Moyes carried out his press conferences—his defeatist and pessimistic attitude were a marked contrast to the bullishness of Sir Alex Ferguson.

Ferguson was a master manipulator of the media; his success and longevity in the English game demanded respect and attention. He spoke with authority and arguably even held considerable sway over the Premier League officials.

Rodgers’ approach during his time at Liverpool hasn’t been nearly as controversial or confrontational as Ferguson’s was at United, but his authoritative stance and constant calmness in interviews and press conferences has been a refreshing departure from the at-times outlandish outbursts of Kenny Dalglish.

If Liverpool remain successful, Rodgers will be well on his way to becoming one of Europe’s most esteemed and respected managers as he develops his career at Anfield.

 

Dealing with Pressure

Dealing with Pressure
Matthew Lewis/Getty ImagesGreat responsibility and power come with the managerial positions of England’s most successful football clubs, and the pressure that finds its way to their managers can be overwhelming.

Sir Alex dealt with the pressure most of the time in the best way possible: by winning trophies and continuing his impressive record. But he also knew how to manage his players and the media to cast the spotlight on whichever party he thought deserved it at the time. Hindsight tells us that he was by and large very successful.

Rodgers hasn’t even completed two full seasons at Anfield yet, but the trials and tribulations he’s had to go through, especially in his first half-year, showed his calmness and composure in dealing with pressure.

Of course, in an unexpected but exhilarating title run this season, the Liverpool boss has managed to keep the pressure off his players by insisting that they have already overachieved this season—in the process making it Manchester City and Chelsea’s title to lose.

 

Synonymy with Club

Synonymy with Club
Christopher Furlong/Getty ImagesOver the years, due to his longevity and success at Manchester United, Ferguson made himself synonymous with the club, in the process making the club’s identity his and vice versa.

He was the one who implemented the attacking football for which United have become famous, as well as all other values, such as the importance the club treat their youth academy.

Rodgers has grown into his role in the Liverpool hot seat to the extent that Reds fans consider him as an embodiment of the “Liverpool way.” His championing of the Hillsborough Justice cause has made him a perfect ambassador for the club, while his well-spoken ways have made him an ideal spokesperson.

 

Start of a New Era?

Start of a New Era?
Julian Finney/Getty ImagesWhen Sir Alex Ferguson took charge at Old Trafford in 1986, Liverpool were the dominant force in English football. It took him four years to win his first piece of silverware at United.

What followed was a legendary period of success in which he defined Manchester United and left behind a lasting legacy both at the club and in the league.

Sir Alex won his last title at United in his last season, which happened to be Brendan Rodgers’ first at Liverpool.

And now, with United having dropped dramatically this season and the Reds poised to win the title in May, what an interesting coincidence it would be if Rodgers put in place the start of a new era at Anfield…

 

This article first appeared on Bleacher Report.