Sports

FSG sells minority stake in Liverpool

Liverpool owners Fenway Sports Group (FSG) have agreed to sell a minority stake in the club worth between £82m and £164m to global sports investment firm Dynasty Equity.

The deal ends the search for new investment by FSG, who wanted to retain majority ownership of the Reds.

The new investment will primarily be used to pay off the club’s bank debt.

“Our long-term commitment to Liverpool remains as strong as ever,” FSG president Mike Gordon said.

“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.”

Liverpool lost £100m of revenue during the Covid-19 pandemic, also spent about £50m on a new training ground in Kirkby which opened in 2020, as well as £12m re-purchasing their previous Melwood training base for use by the women’s team.

The ongoing development of the Anfield Road Stand is going to cost an estimated £80m, and follows the completion of the new £114m Main Stand which opened in 2016.

The Reds also spent about £145m on transfers in the summer, bringing in midfielders Dominik Szoboszlai, Alexis Mac Allister, Wataru Endo and Ryan Gravenberch.

FSG are understood to be keen to reduce the bank debt the club has accrued through the financing of those recent infrastructure projects, and the new cash injection will help cover those costs rather than be directly used on future player transfers.

“We look forward to building upon the long-standing relationship with Dynasty to further strengthen the club’s financial position and sustain our ambitions for continued success on and off the pitch,” added Gordon.

FSG, who bought Liverpool in £300m deal in 2010, said in November 2022 they “would consider new shareholders” and the new investment for a small percentage of the Anfield side brings that process to an end.

Dynasty’s chief executive officer, K. Don Cornwell, said: “Liverpool is one of the most iconic football clubs in the world with a passionate fanbase and significant global reach.

“Dynasty is privileged to support the club and work alongside FSG to execute on the tremendous growth opportunities ahead.”

Source: BBC

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