‘Snap your hand off…’ – Finance expert names price point at which FSG could sell Liverpool FC
A football finance expert has named the price point at which Liverpool FC owners Fenway Sports Group (FSG) ‘would snap your hand off’ if a prospective buyer for the club were to come in.
The Boston-based firm has now been at the helm for 15 years at Anfield, purchasing the Merseyside outfit for £300m and seeing its value increase exponentially in that time, with plenty of tangible on-field success being achieved since the autumn of 2010.
In recent days, John Henry and co have agreed in principle to sell the Pittsburgh Penguins for around $1.8bn (£1.33bn), double the price they paid for a controlling stake four years ago.
FSG could only sell Liverpool for ‘delusional money’
In the latest episode of the Price of Football podcast, Kieran Maguire – football finance lecturer at University of Liverpool – raised the possibility of FSG selling the Merseyside club, but only if a ‘delusional’ offer entering 11 digits were to be tabled.
He explained: “Liverpool are a flagship brand for FSG but if a sovereign wealth fund comes in with a £10bn offer, they would snap your hand off. However, it would have to be delusional money. They could get 12 times the purchase price now [approx £3.6bn], but there is no indication that they are interested in that.
“They are very, very smart operators. They are looking for the big leap forward in terms of revenue generation, which is going to come through something transformative. What that something is, we don’t know.”
Maguire added: “They don’t need to make a profit. They are under no pressure themselves from a financial perspective, so I think they are happy to sit on the asset until that breakthrough moment arrives. On the back of that, they could potentially sell.
“There is no downside to continuing the current position. FSG continue to get all the plaudits of being ultra-smart owners, which increases the value of not just Liverpool but their other sports assets too.
“Cash-wise, they are strong. What are they going to do with the cash they get for Liverpool? Let’s say someone comes in and offers £8bn, which would probably get them thinking about a sale. You have to do something with it. There is no point just leaving it sitting in a bank.”
FSG seem to have further plans on the football side
FSG’s sale of their stake in the Pittsburgh Penguins may have left some Liverpool fans wondering about the firm’s future on Merseyside, but it’d appear that Henry and co have significant plans for the football aspect of their business.
It’s been known for some time that they’re intending to establish a multi-club network and have reportedly completed due diligence on a prospective acquisition of LaLiga outfit Getafe.
The Boston-based owners have been criticised at times for their perceived transfer market frugality (a reputation which was emphatically shattered last summer), along with their plans to participate in the European Super League and introduce £77 ticket prices at Anfield in previous years.
However, they’ll always have our gratitude for rescuing Liverpool from the brink of administration in 2010 and overseeing the Reds’ restoration as one of the foremost teams in England and Europe thanks to smart investment on and off the pitch.
While a sovereign wealth fund akin to Manchester City’s Abu Dhabi ownership or the Saudi Arabian Public Investment Fund at Newcastle may unlock vast financial possiblities for LFC, the thought of an oppressive regime getting their hands on our club is a rather uncomfortable one for many Kopites.
FSG haven’t been perfect, but there’s no disputing that Liverpool have been transformed under their stewardship, and their eventual successors (whoever it may be) would have a very hard act to follow.
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