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Liverpool Echo
Liverpool Echo
Sport
Keifer MacDonald

Liverpool's FSG evolution after hirings, firings, £200m investment and huge mistakes

Jurgen Klopp's status at Anfield is so untouchable that, more often than not, whatever message he conveys is echoed by the vast majority of Liverpool supporters.

However, you'd have to delve back to June 2020, just days after guiding the Reds to a first league title in 30 years, to find a remark that didn't draw on the heartstrings of supporters as extensively as it should have after Liverpool's latest, once viewed as inconceivable, triumph of returning to the top of English football.

"They were my first owners, so I can’t compare them. They are the best owners I have worked for, for sure!" said Klopp, speaking about his Anfield bosses, Fenway Sports Group. "There is no problem if things don’t happen. You do not need a personal relationship in this business. We have worked brilliantly together."

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But just over two years after accumulating a club-record 99 Premier League points, and a little over six months after falling within a whisker of completing a historic quadruple, owners FSG are ready to listen to offers for their stake in the football club after twelve, tumultuous years at the Anfield helm.

In a statement given to the ECHO on Monday, FSG said: "There have been a number of recent changes of ownership and rumours of changes in ownership at EPL clubs and inevitably we are asked regularly about Fenway Sports Group’s ownership in Liverpool.

"FSG has frequently received expressions of interest from third parties seeking to become shareholders in Liverpool. FSG has said before that under the right terms and conditions we would consider new shareholders if it was in the best interests of Liverpool as a club.

"FSG remains fully committed to the success of Liverpool, both on and off the pitch."

While the statement supplies more questions than it does answers due to its obscurity, any decision for FSG to call quits on their spell in the Premier League will not come as a surprise to those who follow the club closely.

Having bought the club for £300m - while simultaneously inheriting the £200m debt owed to the Royal Bank of Scotland - in 2010, Liverpool lay 18th in the Premier League table. Roy Hodgson was the club's manager and just days after securing the takeover following a series of high court hearings in London, Dallas and New York, Hodgson's side would provide FSG - then known as New England Sports Ventures - with a discouraging introduction to life in England as they caved to a 2-0 defeat to Everton at Goodison Park.

Because of their predecessors - the problematic duo of Tom Hicks and George Gillett - and the club's appalling start to the Premier League season, which resulted in Hodgson admitting that even a club of Liverpool's distinction was not excused from being embroiled in a relegation struggle, the bar was set relatively low for FSG.

After a series of lengthy legal cases, far-fetched discussions about never-to-be-seen spades in the Stanley Park turf and a series of unfulfilled promises, in October 2010, supporters craved just one thing from their new Boston-based owners: a feeling of belonging from their most-treasured pastime, Liverpool Football Club. That, on the whole, has been delivered. Even if it has not been as obvious as it could, and maybe should, have been at certain periods over the last twelve years.

But whatever the collective opinion on FSG may be from certain pockets of the fanbase, one thing that is indisputable is that they have supervised the club's most prosperous on-field period since the days of Bill Shankly and Bob Paisley in the 1970s and 80s. They have also taken the club's commercial attraction to new, unforeseen heights. Ultimately, Liverpool Football Club is in a far healthier state than the one the American group inherited.

But should they leave Liverpool in the coming weeks, months or years, how would their tenure be assessed? The ECHO takes a look at some of the key moments since October 2010.

M anagerial shake-ups

It was less than 10 weeks into their reign as owners that FSG had their first big decision to make at Anfield. After aimlessly drifting through the first half of the 2010/11 Premier League campaign in woeful fashion, a first home defeat to Wolves in 27 years, followed by the infamous 3-1 drubbing by Blackburn Rovers at Ewood Park proved to be the final straw and just days later Hodgson was given his marching orders by his new American bosses - less than six months after he had replaced Rafa Benitez.

A dismal return of 25 points from 20 Premier League games saw the mood at Anfield depleted, and a combination of a mismatched group of players in an underperforming team resulted in a side that had well and truly lost its way. FSG, looking to bank their first points on Merseyside, turned to the legendary Kenny Dalglish to restore some much-needed pride at Anfield until the end of the season. Although he would later be handed the position on a permanent basis.

Emerging from the depths of the Old Trafford tunnel for his first match as Liverpool manager in 20 years, an FA Cup third-round tie with Manchester United in January 2011, the travelling Kop roared as the Scotsman gestured his thrill at being back at his beloved club and in his embraced city.

Dalglish would ultimately last just under 15 months in his second spell at Anfield, despite winning the League Cup and reaching the FA Cup final in the following season as the Reds' underwhelming eighth-place finish in 2011/12 cost him his job.

However, his appointment showed that FSG were attempting to earn supporters' affection early on. Having been out of management for the best part of 11 years, there were more suitable contenders to take the job on an interim basis but striking a deal with a figure as iconic as the Reds' three-time European Cup winner earned some much-needed brownie points early on, even if it did not work out as planned.

The subsequent appointment of the up-and-coming Brendan Rodgers in June 2012, who was just 39 years old at the time, was the first indication that FSG would be willing to play the long game in a bid to reach the summit of the English scene once more. As the Americans began to settle in their new surroundings, a low-risk high-reward, sub-25 transfer strategy - often referred to as 'Moneyball' was introduced. A January 2013 double swoop for Daniel Sturridge and Philippe Coutinho proved to be one of the most prosperous windows in recent memory.

The appointment of Jurgen Klopp, after Rodgers' post-title challenge surrender during the 2014/15 season, has unquestionably been the greatest success of the Americans' time at Anfield. While the Liverpool manager and his recruitment staff will rightly be applauded for their ability to squeeze every last drop out of the - at times, limited - resources their bosses have supplied them with them, FSG's incredible pull to lure Klopp out of his post-Borussia Dortmund sabbatical and convince the German that Anfield was the right place to seek a new challenge should not be ignored.

Clearly, the job that Klopp has accomplished during his time at Anfield is one that very few - if any - managers in world football would have been able to do. The German's blossoming relationship with FSG president Mike Gordon - who deals with Liverpool on a more day-to-day basis - has meant that the Klopp era is set to continue until 2026. But a drastic shake-up of the club's ownership model - more specifically if a state-run consortium were to relieve FSG of their responsibilities - could change the landscape on that matter despite his clear devotion to the club. As a vocal left-leaning citizen - and his continued disdain towards states with dreadful human rights records - it would be difficult to see the former Borussia Dortmund manager consenting to work with such a troublesome party.

Anfield expansion

For a structure built entirely out of bricks and mortar, Anfield has something extraordinary about it. Just ask Lionel Messi, Jordi Alba and Gerard Pique, or any other members of Barcelona's squad who took to the hallowed turf on May 7, 2019.

The stadium has been one of the essential pillars of Klopp's success on Merseyside, with the club's 68-game Premier League unbeaten record between May 2017 and January 2021 only second to Chelsea's incredible 86-game run at Stamford Bridge between 2004 and 2008 in the history of English top-flight.

However, that wasn't always the case as Hicks and Gillett had plans to ditch Liverpool's home of over 100 years and move to a new state-of-the-art stadium in Stanley Park, plans had even been drawn up for the stadium by Dallas-based architects HKS. But Gillett's remarks about the first dig on the site needing to be completed in the “next 60 days” - during his opening press conference in 2007 - fell in vain as supporters officially lost patience after 440 days when no spade had been planted in the ground.

"This was a dig at the American owners of Liverpool Football Club," said protest organiser James McKenna in April 2008.

But unlike those before them, FSG embraced the challenge of restoring Anfield back to its former glory and swiftly lodged a planning application for the first construction project of their era, the £100m Main Stand project which was part of a Liverpool City Council-led regeneration project for the local Anfield area.

After a revamped Anfield was finally able to open its doors to a record Premier League crowd against Leicester City in September 2016, Liverpool's matchday revenue increased by £22m in the three-year period that followed (2017 to 2020). Such an increase in finances highlighted just how important the result of the 8,000-seater stand had been on the Reds closing the gap between themselves and commercial giants Manchester United.

At the time of writing, the third final redevelopment project of FSG's tenure is edging towards finalisation, with Anfield Road due to open its doors to an extra 7,000 supporters ahead of the 2023/24 season. The project was estimated to set the club's owners back by £60m but will now command a fee closer to £80m due to an increase in construction costs.

Upon completion, the Anfield Road, Main Stand and AXA Training Centre builds will have cost FSG over £200m and such a significant investment should not be overlooked given the commercial primes it has allowed the club to reach away from the pitch in recent years. This is before even considering any potential sale of the naming for the stand, which would generate further income.

It means that should any new owners or shareholders walk through the Anfield doors in the coming weeks, months or years, there will be no requirement for an immediate improvement of the club's infrastructure. However, the same cannot be said about Manchester United and their desperation to be freed from the shackles of the Glazer family due to the current neglect Old Trafford finds itself in.

Instead, the club is a far more attractive proposition for any future buyer - who would need to be one of the wealthiest groups or individuals on the planet to meet the club's eye-watering valuation - allowing any future funds to be devoted to solely building another great Liverpool dynasty.

Unforgettable blunders

Of course, during their tenure FSG have made some big, inexcusable mistakes; most particularly their decision to accept an invitation to be one of the founding members of Florentino Perez's failed European Super League dream in April 2021. Such was the backlash from supporters, that - even with games being played from behind closed doors due to the Coronavirus pandemic - they were able to force Henry into a grovelling apology and subsequent a u-turn within 48 hours of Liverpool - and five other Premier League clubs - signing up for the breakaway, rebel league.

Signing along the dotted lines in a desperate attempt not to be left behind in an ever-evolving football landscape - with the gap between recent Premier League title rivals Manchester City already huge - their ill-advised decision to unite with eleven other European clubs in a closed-shop contest was the first signalling that FSG were scraping the barrel in a last-ditch attempt for a huge cash-injection.

“Over these 48 hours, you were very clear that it would not stand; we heard you, I heard you," said an emotional Henry after finally withdrawing from the ESL. "I want to apologise to Jurgen, to Billy, to the players, and to everyone who has worked so hard at LFC to make our fans proud. They have absolutely no responsibility for this disruption; they were the most disrupted, and unfairly so, and this is what hurts most. They love your club and work to make you proud every single day.

“I know the entire LFC team has the expertise, leadership and passion necessary to rebuild trust and help us move forward. More than a decade ago, when we signed up for the challenges associated with football, we dreamed of what you dreamed of, and we’ve worked hard to improve your club. Our work isn’t done, and I hope that you’ll understand that even when we make mistakes, we’re trying to work in your club’s best interests.

“In this endeavour, I’ve let you down. Again, I’m sorry, and I alone am responsible for the unnecessary negativity brought forward over the past couple of days. It’s something I won’t forget and shows the power that fans have today, and will rightly continue to have.”

When the dust settles, it's a monumental mistake that has the potential - if it hasn't already - to define FSG's time at Anfield and on Merseyside. Previous mistakes such as trying to increase home tickets to a laughable £77 in 2016, lodging an application to trademark the word 'Liverpool' after the 2019 Champions League triumph in Madrid and the initial plans to use the Coronavirus job retention scheme in March 2020, were calamities that boiled down to the foolishness of those across the Atlantic believing a game rooted in working-class values would accept such Americanisation.

Questions can be asked as to whether the motivations for the oversights - the European Super League aside - were genuine mistakes or perhaps more calculated and desperate attempts to boost the marginal financial gains each decision would have delivered. Though the jury, it seems, has already reached a verdict on that predicament judging by the persistent shouts for the Americans' departure from Anfield. But one thing that is for sure is their willingness to hastily flip such outlandish calls and communicate with supporter groups such as Spirit of Shankly - who recently acquired a position at the club's board level - should be acknowledged.

Morality issues and legacy

But now FSG find themselves at the most critical junction of their Liverpool tenure and the next sequence of events will no doubt define their time as owners. If they accept that they have carried the club as far as they possibly can and dialogues citing such absurd prices prove too lucrative to turn down, Henry and Werner will surely leave with the best wishes of most supporters. That is, however, if they are able to get the right successor through the doors of Anfield.

Yet, with Forbes' recent valuation of Liverpool Football Club standing at a staggering $4.45 billion - a fee which would see the Reds become the most expensive sports establishment of all time - the pool of potential admirers does not allow FSG to handpick their ideal successors. The early, obvious conversations will initiate talk of a potential state-owned takeover, similar to the recent purchase of Newcastle United by the Saudi Arabia Public Investor Fund (PIF), and Sheikh Mansour' - who is the deputy prime minister of the United Arab Emirates - acquisition of Manchester City back in 2008.

But if FSG wish to depart with their reputation unharmed any further - after navigating their way through difficult aspects of their tenure, at times, impressively - they must ensure whoever is funding operations at Anfield is not using the club as a soft play instrument to enhance their political reputation and image across the globe. Liverpool cannot and will not stand for similar ownership values to those currently on exhibition at St James' Park and the Etihad.

That is now without a doubt the single, most significant factor that will determine whether FSG's term in the Anfield offices is viewed as a triumphant era filled with trophies, or if a potential exit is overshadowed by the carelessness of discarding the club into a bleak and unsavoury ethical future.

Meaning that despite their hectic twelve years on Merseyside, Fenway Sports Group's most crucial decision is still to come.

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