Fenway Sports Group (FSG), the US owner of English soccer giants Liverpool, has sold a minority stake in the club to US private equity firm Dynasty Equity.
While the financial details of the deal have not been released, it is believed to be worth in the region of $100 million to $200 million, which represents a minority investment of between 1.9% and 3.8%.
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The sale ends FSG’s search for investment, which started last November, and the cash injection will be used to reduce the club’s debt incurred during the pandemic and through acquisitions in the recent transfer window.
It will also be used to cover the cost of several projects including the new Anfield Road stand, the new AXA training center, and the repurchase of Melwood training ground.
The investment, however, will not go towards transfer spending in the future.
Liverpool’s debt before repurchasing Melwood and its recent transfer spending stood at around £150 million ($188 million), which led FSG to seek outside investment to service it.
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By GlobalDataThe US ownership group, which is owned by billionaire John Henry, retained global investment banks Goldman Sachs and Morgan Stanley to assist with the process, leading to speculation that a sale of the club was imminent.
However, the company has reiterated its desire to retain the club, adding the investment does not represent the first step towards a sale and will not affect the operation of the club.
FSG president Mike Gordon said: “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 is an investment firm specializing in acquiring minority stakes in sports franchises and is run by co-founders Jonathan Nelson (executive chairman) and K. Don Cornwell (chief executive).
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.”
FSG, which also owns the Boston Red Sox of North America’s Major League Baseball, acquired Liverpool from US pair Tom Hicks and George Gillet in October 2010 in a deal valued at around £300 million.
Last year, FSG sold an 11% stake to RedBird Capital Partners, the US investment firm, for $750 million and also acquired the Pittsburgh Penguins NHL ice hockey team in a deal valued at around $900 million.
Under the tenure of the US owners, Liverpool have won every major trophy, including their first league title in 30 years in the 2019-20 season, as well as the UEFA Champions League, FA Cup, and Carabao Cup.
The club narrowly missed qualification for the UEFA Champions League at the end of the 2022-23 season but currently sit second in the English Premier League behind Manchester City.
