icLiverpool - Stadium facing shortfall of 50m GBP

Feb 11 2005

By Bill Gleeson, Daily Post

LIVERPOOL Football Club's ambition to build a new stadium at Stanley Park faces a 50m GBP shortfall.

Soaring steel prices have been a key element in driving up the projected cost of the 60,000-seat stadium from £80m to £140m in the five years since the original plan was announced.

The club has been unable to raise all the money it needs by borrowing from City investment banks, and is now trying to tap into public sector grants.

This week, it emerged that Liverpool is turning up the pressure on the Northwest Development Agency for a decision on a £21m grant application.

And last night a source close to the stadium funding negotiations told the Daily Post: 'They have tried to raise money from the private sector, but the problem is the costs keep rising. They are now £140m. No wonder they want the NWDA's money quickly.'

Chief executive Rick Parry says Liverpool is also considering trying to raise cash by selling the naming rights to the new ground. Liverpool has been inspired by how Arsenal successfully clinched a lucrative £100m naming rights deal with Middle Eastern airline Emirates. When the plan for Liverpool's new stadium was first conceived in 2000, the club used the services of financial advisers Schroders to raise around £80m for a 70,000 seat ground.

But that plan proved too expensive and a scaled back version now sees the club seeking to build a 60,000 seat ground.

However, since then the price of steel has rocketed on the world's commodity markets.

The club hopes to be playing at its new ground in time for the start of the 2007/8 season, but that deadline is looking increasingly unlikely to be met.

Liverpool is applying pressure on the Northwest Development Agency to make a quick decision about financial support for infrastructure around the stadium.

However, the NWDA is thought to need convincing that contributing towards the cost of a new stadium at Stanley Park would make best use of its money.

The Warrington-based agency had hoped that both Liverpool and Everton would share a stadium. Both clubs have now rejected the idea of a shared stadium, but the NWDA does not want to have to pay out a second grant to Everton, should the club be in a position to build a new home of its own.

Liverpool FC did not respond to our requests for a comment on the situation yesterday."