It's just occurred to me that we haven't considered the impact of the Annie Road expansion on our transfer budget. I had kind of assumed that FSG would lend the club the money like they did with the Main Stand, so it wouldn't affect our normal operations.
But the Annie Road stand (£60m spend, 5,200 low-value general admission seats and 1,800 "sports bar" (also low value, relatively speaking)) isn't going to generate the kind of return the Main Stand did. So it's a harder sell to US investors who like baseball to put the money in because the return is relatively low. And if they're not going to fund it, and we're going to need to find the money ourselves, then either:
- We need to take on some extra debt; or
- We need to rein in our transfer spending (probably this year and next, as the stand is supposed to be complete for season 2023-24 (2 year project).
The impact on spending for next year probably won't be as bad as we should get the first year's worth of season ticket cash in (including hospitality) and the spending in year 1 will probably be quite high as it will include the cost of the steel for the structure.
So when we see other teams spending more money than us, it may be because they don't have to find £60m over 2 years to pay for an extra 7,000 seats.
I imagine some fans will be OK with this because they'll stand a better chance of getting in to watch the match in 2 years time, and others (who can already get in or who rarely get the chance to visit Liverpool) will be less impressed.
Don't shoot the messenger.
And we might be going down the debt route in which case you can ignore the above and the additional ticket revenue will more than pay for interest costs and repayments in future years.