Fenway Sports Group have indicated that they could be willing to part ways with Liverpool after their latest statement.
A report in The Athletic on Monday claimed that FSG, who are led by John W. Henry, have “put Liverpool up for sale”, a little over 12 years since their takeover. The American group, then named New England Sports Ventures, purchased the club in October 2010 for £300million.
Influential American business publication Forbes now suggests the club are worth £3.6billion. Soon after the reports, FSG issued a statement to the ECHO outlining their current stance regarding the ownership of Liverpool.
The ECHO's business of football writer Dave Powell hosted a Q&A where he answered fan questions about the FSG statement, prospective new owners and how it might affect transfer business. Here is a round-up of how the session unfolded.
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David: Do you think the reports are true about FSG selling up and if so what sort of owner do you think we will get
DP: My view is that they are seeking third party investment first and foremost BUT would entertain a full bid should the figure be eye-watering.
In terms of potential owners, the size of the price tag means that you would be looking at consortiums rather than individuals, and US private equity funds would pounce on the Reds if the price was right as they have tremendous scarcity value. Bids from nation states or sovereign wealth funds would have to be assessed for any moral dilemmas that may be presented. It can't just be about who can pay the most money. This is Liverpool.
Corona: FSG bought Liverpool at minimal cost, have added a lot of value, and are now looking to take their profit.
DP: Take the point, definitely. I don't think they are in the business of flipping, though. The view among US investors is that teams and leagues in European football are significantly under monetised, hence the desire to invest in the PL.
The PL has a four billion fan base on a cumulative market cap of maybe £25bn and cumulative media revenues of £5bn. Comparing that to the NFL it is against a £140bn cumulative market for the NFL on a 200m fan base and media revenues four times the PL. That is where US owners see the value heading. A lot depends on whether FSG have the desire to be so aggressive in being at the vanguard of that push.
They want an NBA team and there is cost certainty that exists in the US that they don't have over here. Maybe they focus on home instead? I think they want to keep doing both.
The5spian: My unofficial and unprofessional take is that this is basically FSG getting a valuation for the club of say £4bn then they can charge someone £400 million for 10%. If this was the scenario would that £400 million go towards transfers?
DP: I think that it's two-fold. They get to see what kind of investment is out there while getting an idea on valuation from those who may want to make a full offer. I don't think it's a preferred course of action. On the second point, I don't think the entirety of any capital that came in would purely be used for transfers, but some proportion would flow in that direction. A considerable one you would hope.
Daryl: Will the Spirit of Shankly or a supporter's union have a say in any potential sale? In other words, will the moral sentiments of the club hold any value in this whole transaction?
DP: SOS have released a statement on the position that says that they would want to be included in the dialogue around any potential sale.
The creation of the Supporters Board earlier this year has been completed and the commitment to the Board having to be sought for consent over such things as the European Super League are written into the articles of association, making them binding no matter who is in charge.
For Supporters Board it will now be about ensuring that if anyone does make a full offer then they are engaged with the process from the outset.
Kloppleganger: Do you feel this is a move to generate extra capital for the club to reinvest in the squad rather than dipping into their own coffers? Or do you feel, if it is a stake sale rather than full purchase, it will be a gradual changing of the guard over a number of years?
DP: I think that the timing is interesting. FSG engaging Morgan Stanley and Goldman Sachs was a process done around 12 months ago with the idea of bringing in fresh capital through investment. That has now turned into testing the market for the appetite for a full sale. I do still think that the former is what FSG want, they will know that while the valuation for the Reds is great right now at around £3.5bn to £4bn it is a valuation that will continue to rise in line with the growth of the PL and scarcity value that top six clubs have. Competing in the current climate gets harder and harder and maybe this is a way of addressing considerable spend. I don't think major infrastructure developments are on the horizon in the near future.
Azuone: Is any buyer on ground for this go thorough really fast and does it have anything to do with the signings we want to make in January and in the summer.
DP: I don't think this will be anything swift. First off, it is a testing of the water and something non-committal. Liverpool remains the most valuable part of FSG's empire and parting company with an asset of its value and size won't be a decision taken lightly, which is why capital from elsewhere arriving is much more likely in my opinion.
There would be immediate interest but given the size of the price tag, the need for due diligence and the requirement that any new owners would have to really fall in line with expectations of the fan base operationally and socially means that no quick transitions would be likely.
I must stress, though, there is no for sale sign outside Anfield, this is like asking the estate agent for a valuation on the off chance.
Jotohl: The statement by FSG read much more as a willingness to transition to a minority stake partnership rather than an outright sale - if the reports are true is this something that is feasible? Hopefully this doesn’t affect Klopp’s long term future due to his close working relationship with FSG and his outspokenness regarding the state owned clubs.
DP: I think that they are trying to ascertain what kind of investment they can bring in but also opening the door slightly for anyone who wants to pay a premium. I don't think an outright sale is their preferred course of action right now.
As for Klopp you would hope he has been kept in the loop here. He and Mike Gordon have a strong relationship, with Gordon pretty much next in line behind Henry and Werner in the FSG hierarchy.
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