Amazon founder Jeff Bezos will be just a ‘passive investor’ in the £1.65bn deal by a billionaire consortium to buy a 30% stake in Liverpool FC. Tony McDonough reports
Liverpool FC majority shareholder Fenway Sports Group (FSG) has confirmed a consortium of billionaires is to buy a 30% stake in the club.
Subject to regulatory approvals, FSG will sell a stake in LFC worth £1.65bn to 1892 Holdings, a consortium led and managed by Amit Bhatia. This values the club at around £5.5bn.
Cash for the deal is coming from Amit Bhatia and the Mittal Family Trusts, K5 Sports (a K5 Global Fund), with Amazon founder Jeff Bezos as the lead investor in the K5 Sports fund, and EE Capital, the family office of Elaine and Eduardo Saverin.
Forbes estimates Bezos’s fortune to be around $(US)280bn, Saverin’s $32(US)bn and Bhatia whose worth is tied up in the Mittal family fortune believed to be around $(US)30bn.
Much of the online discussion has centred around the involvement of Jeff Bezos. However, it is understood he will not be taking an active role in the running of LFC and will be regarded as a passive investor.
In a statement LFC said the consortium partners will work with FSG and the club’s leadership team to “evaluate opportunities that enhance the club’s objectives on and off the pitch”. FSG continues to retain majority ownership and operational control.
Mike Gordon, FSG president, said: “Liverpool has always been built by thinking beyond one season and making decisions with the club’s long-term interests in mind. That approach continues to attract interest from respected investors and business leaders around the world.
“As we considered this opportunity, it became clear that Amit and the consortium shared our long-term philosophy and appreciation for what makes Liverpool special. Their experience and perspective will complement the strong foundation already in place, and we look forward to working together.”
Mr Bhatia is the son-in-law of Indian steel magnate Lakshmi Mittal. He initiated and led talks with FSG on behalf of the 1892 Holdings consortium, a reference to Liverpool’s founding year. He will become LFC’s new vice-chair on an expanded board.
“We are incredibly proud to be investing in Liverpool Football Club and to be doing so alongside FSG. We have the utmost respect and admiration for FSG as owners and for everything they have achieved at Anfield,” said Mr Bhatia, a former co-owner of Queens Park Rangers FC.
“To be welcomed as a partner in a club of this stature is a huge privilege. We are making this investment because we believe deeply in Liverpool and its leadership, and we look forward to supporting the club’s continued success for years to come.”
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Corestone Capital Advisors introduced the parties and facilitated their engagement in connection with the transaction.
FSG acquired Liverpool FC in 2010 for £300m and already has RedBird Capital Partners, LeBron James and Maverick Carter among its investors. US sports investment firm Dynasty Equity reportedly paid up to $200m for a stake in the club that equated to smaller than 4%.