The concert is also a tribute to 18-year-old James McVey, who died after being attacked outside a party in Walton.
Mr Watson, 44, said: “It is good to honour James’ memory with a fundraiser while also keeping the pressure on to make sure the government’s Hillsborough papers are published.”
The Labour MP said Rupert Murdoch’s company News International failed to learn its lesson after its coverage of the Hillsborough tragedy.
He said: “People were shocked by the phone hacking scandal, but it did not shock people in Merseyside because they know the underhand tactics The Sun used in the 1980s.
“The Sun continues to be successfully boycotted across Merseyside because of the lies it published about Liverpool FC fans.
“Now I understand how the company operates, I can understand what the families must have gone through at the time.