Liverpool FC owner Fenway Sports Group sells ‘small minority’ stake in the club in a deal believed to be worth up to £164m. Tony McDonough reports
Fenway Sports Group (FSG) have sold a ‘small minority position’ in Liverpool Football Club in a deal believed to be worth between £82m and £164m.
New York-based sports investor Dynasty Equity is seeking no operational control of the Premier League club. FSG says the money from the investment will be used to pay down the club’s bank debts.
In the club’s most recent accounts, for the year to March 31, 2022, net debt stood at £74m while inter-company debt, money owed by the club to FSG, was £71m.
This money will be used to pay debt from the improvements to Anfield, the new AXA Training Centre at Kirkby and the repurchase of the Melwood training ground. This was originally sold to a housing developer. It will also cover some of the pandemic losses.
And will also go towards the most recent player acquisitions made in the summer. These include Alexis Mac Allister, Dominik Szoboszlai, Wataru Endō and Ryan Gravenberch, totalling more than £150m.
Owned by US billionaire John W Henry, FSG acquired Liverpool FC in 2010 for £300m, rescuing it from the disastrous ownership of two other US businessmen, Tom.Hicks and George Gillett. It is now believed to be worth around £3.5bn.
At the end of 2022 there was speculation FSG was on the lookout for a buyer for the club. However, in February this year John W Henry insisted that while they were on the lookout for new investment, there were no plans for an outright sale.
FSG president Mike Gordon said on Thursday: “Our long-term commitment to Liverpool remains as strong as ever.
“We have always said that if there is an investment partner that is right for Liverpool then we would pursue the opportunity to help ensure the club’s long-term financial resiliency and future growth.
“We look forward to building upon the longstanding relationship with Dynasty to further strengthen the club’s financial position and sustain our ambitions for continued success on and off the pitch.”
Dynasty Equity was co-founded by Jonathan M Nelson and K Don Cornwell. It is primarily focused on acquiring minority stakes in sports franchises around the world.
Mr Nelson added: “We are honoured to partner with FSG and support the remarkable legacy of Liverpool in a strategic partnership that builds upon mutual respect and deep relationships among our respective teams.”
Morgan Stanley and Goldman Sachs served as financial advisors to FSG on the transaction.