Liverpool owners FSG have today confirmed the sale of a minority stake in the club to global sports investors Dynasty Equity.
The announcement was made via liverpoolfc.com, with the investment to be used primarily for repaying bank debt accrued during the global pandemic and capital expenses on assets such as Anfield and the club’s training facilities at Kirkby and Melwood.
As per The Athletic, the deal is worth between $100m (£82m) and $200m (£164m), which by Forbes’ estimated $5.3bn (£4.3bn) valuation of LFC would amount to a minority investment of 1.9%-3.8%.
However, Liverpool fans have been advised that the sale of the stake won’t see a heavily enhanced transfer budget for Jurgen Klopp, with senior FSG figures insisting that the priority is to manage the financial health of the club.
While it concludes the owners’ long-time search for new investment, they’ve made it clear that the transaction won’t be a stepping stone towards a full sale of LFC.
That underlines FSG’s 180-degree change in stance from when they initially put the club on the market last November, only to revise that a couple of months later to offering out a minority stake instead.
The initial reaction from the fanbase to this news (after it was shared online by journalists such as Paul Joyce and Chris Bascombe) appears to be mixed, with some welcoming the sounder financial footing it’ll offer and others unhappy that the money won’t be funneled towards an increased transfer budget.
With the Premier League seeing mammoth fees being spent on players as a matter of course, clubs who are overly parsimonious in the market will naturally risk getting left behind by those who invest heavily in their squads.
However, expenditure doesn’t automatically guarantee success. While the likes of Brighton have grown through astute transfer decisions and on-field management, Chelsea and Manchester United have frequently indulged in massive transfer splurges with minimal reward.
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Even if Liverpool’s spending isn’t at the levels of other members of the so-called ‘Big Six’, they did splash out almost £150m (potentially more after add-ons) on new signings during the summer, one of whom (Dominik Szoboszlai) has already made a massive impact at Anfield.
We’d all love to see the Reds having the financial muscle to sign any player in world football, but the importance of managing debts and increasing the value of assets such as the stadium and training ground can’t be underestimated.
The impact of FSG selling the minority stake to Dynasty Equity will only become clear with the passage of time.
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