According to a football finance specialist, Fenway Sports Group (FSG) wants roughly £500 million from a partial sale of Liverpool. FSG purchased Liverpool from Tom Hicks and George Gillett for £300 million in 2010. They have overseen tremendous success during their tenure, winning seven major championships.
FSG demands £400-500 million for a 10-15% ownership stake
FSG revealed last November, in an announcement that has been overshadowed by the impending Manchester United takeover, that they have placed Liverpool on the market. Though it was unclear whether a full sale was possible at the time. However owner John Henry later stated that FSG had held negotiations with parties about investment in the club. FSG are reportedly seeking between £400-500 million for a 10-15% ownership stake in the club after selling 11% to RedBird Capital Partners in April 2021.
Accountancy pundit Kieran Maguire hails FSG’s success
Kieran Maguire, a professor with expertise in accountancy, finance, and accounting at the University of Liverpool, described FSG’s hope for investment and how they’ve handled the club so successfully.
“FSG effectively acquired Liverpool – from the disaster that was Hicks and Gillett and Liverpool were pretty close to being in a very horrible position – for around £300 million,” Maguire stated.
“They sold 11% of FSG – who also own American sports franchises – to RedBird Capital for around £500 million. They’ve got their money back but you’ve got to acknowledge that Liverpool are only part of the overall portfolio.”
“They did announce less than a year ago that they were open to discussions for the sale of Liverpool. That has sort of gone under the radar. All of the focus over the past seven or eight months has been in regard to [the sale of] Manchester United.”
Kieran Maguire reflects on the sucessful strategies of FSG
“It would now appear that FSG are willing to sell a minority stake direct into Liverpool. From what I’ve been told, we’re talking 10-15% of the club and are looking to get somewhere in the region of £400-500 million for that sale. They bought the whole club for £300 million, which is indicative. They’ve run the club in a pretty lean manner and pretty successful manner.”
“In terms of the money they’ve put into the club, if you go to the accounts of the parent company called UKSV Holdings Ltd you’ll find FSG have effectively loaned Liverpool £137 million interest-free. We see many other owners lending money to clubs and getting a kickback on it and that money has very much gone into infrastructure.”
“If I take a look at Liverpool’s accounts for the past 10-15 years in which FSG have been in charge. Nearly every year Liverpool have broken even and made some money in the transfer market and recycled that. There have been a couple of years when they lost money, clearly during Covid, but they aim to break even. From their point of view, there is no necessity from the owners to fund the transfer regime and the sale of the likes of [Luis] Suarez, [Philippe] Coutinho, [Raheem] Sterling and Co. They have actually generated a lot of money from the transfer market.”
Kieran Maguire slams John Henry, says he ‘has no interest in football’
“Their net spend, and I know it’s something that gets some fans upset, has been modest. They’ve not put a huge amount in. The money they have has been invested, has been very focused, very laser-driven, based on doing the sums in advance – which isn’t glamourous but in terms of running and business and that’s how they see.”
“If anyone thinks John Henry is a Liverpool fan, they’re daft. It is a franchise as far as he is concerned. You’ve only got to see his behaviour during Project Big Picture and the Super League that he’s got no interest in football. But has got an interest in being a successful businessman.”
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