Despite a disappointing draw on the first day of the season, Liverpool Football Club embarks upon a new Premier League campaign, revitalized both on and off the pitch. With the Hicks-Gillette era now firmly in the past, new owners, Fenway Sports Group appear to have dramatically altered the club’s fortunes.
Liverpool’s major commercial success during the off season was the announcement that the Premier League soccer club had signed a kit deal with Boston-based apparel company Warrior Sports worth a staggering US$41million annually. The agreement, due to take effect at the start of the 2012/2013 season, is worth more than double their previous deal with Adidas and is the biggest kit contract in Premier League history. It is surely no coincidence that Warrior Sports, owned by Boson-based New Balance, has chosen Liverpool as the destination for their first venture into the English soccer market. The city also plays host to Fenway Sports Group and it is more than likely that the two parties were able to build on their shared heritage and close proximity.
When one considers Liverpool’s market potential, the enormous sums due to be paid by Warrior Sports seem like excellent value for money. Despite a tempestuous few years on the pitch, the Anfield club has never lost their extensive global fan base. Liverpool sell the fourth highest number of replica shirts in the world behind Manchester United, Real Madrid and Barcelona and, with the huge success of their tour of the Far-East, are likely to retain that position in the coming years.
The Asian tour saw the Reds entertain fans in China, Malaysia and Korea. Organized by Liverpool’s premium sponsor, Standard Life, who felt the club needed to focus more on its Asian fan base, the tour confirmed Liverpool’s status as a truly global sporting phenomenon. The Reds completed their trip with an open training session in Singapore which drew the last of an estimated 200,000 fans to watch the team in a single week.
Led by managing director Ian Ayre, the club’s commercial and retail offerings have been further expanded through the opening of a number of official merchandise stores around the world. The club recently announced plans to open their sixth and seventh stores in Southport and Dublin respectively.
A major issue that will need to be addressed by the Liverpool hierarchy however, is that of the stadium. The club have been based at the world famous, 45,000 capacity Anfield stadium for over a hundred years but a new stadium would vastly increase Liverpool’s matchday revenue. Fenway Sports Group are believed to be searching for a sponsor to help fund the construction of a new home for the club but will have to handle any potential move with extreme care. Liverpool fans have already voiced their disapproval at the proposed sale of naming rights and John W. Henry and co. would be wise to remember that a breakdown in relationship with the Anfield faithful could prove as traumatic for them as it was for their predecessors.
Despite rumors of financial problems at Liverpool, Forbes value the club at US$552million, and, on evidence of the huge sums spent on players during recent transfer windows, it seems that Liverpool fans have little to be worried about.
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