Liverpool Football Club’s owners, Fenway Sports Group (FSG), have announced the sale of a minority stake in the club to global sports investment firm Dynasty Equity. The deal, which is estimated to be worth between £82m and £164m, will primarily be used to pay off the club’s bank debt.
FSG president Mike Gordon expressed the group’s commitment to Liverpool, stating, “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.”
The Covid-19 pandemic took a significant toll on Liverpool’s finances, resulting in a loss of £100m in revenue. Despite this, the club has continued to invest in infrastructure, spending approximately £50m on a new training ground in Kirkby, which opened last year. They also repurchased their previous Melwood training base for use by the women’s team at a cost of £12m.
Further financial commitments include the ongoing development of the Anfield Road Stand, estimated to cost around £80m. This follows the completion of the new £114m Main Stand in 2016. Additionally, Liverpool invested approximately £145m in new player transfers during the summer, bringing in midfielders Dominik Szoboszlai, Alexis Mac Allister, Wataru Endo, and Ryan Gravenberch.
FSG aims to reduce the club’s bank debt, which has accumulated due to these recent infrastructure projects. The injection of funds from Dynasty Equity will help cover these costs, rather than being directly allocated to future player transfers. Gordon added, “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.”
The sale of a minority stake in Liverpool marks the conclusion of FSG’s search for new shareholders, as previously stated in November 2022. Dynasty Equity’s CEO, K. Don Cornwell, acknowledged Liverpool’s status as one of the most iconic football clubs globally, with a passionate fanbase and significant global reach.
This financial investment is expected to provide Liverpool with the necessary resources to address their bank debt and ensure the club’s long-term financial stability. With ongoing infrastructure projects and recent player transfers, FSG’s decision to sell a minority stake to Dynasty Equity demonstrates their commitment to securing the club’s future success both on and off the pitch.
More detail via BBC here… ( Image via BBC )