Liverpool: Fenway Sports Group sells minority stake to US private equity firm Dynasty Equity
Liverpool’s owners have sold a small stake in the club for up to $200 million.
The money raised will be used to pay down debt and help fund capital expenditures.
Liverpool, like all clubs, were hit by the pandemic and significant investment has been made in transfers, the redevelopment of Anfield, the construction of a new training ground and the buyback of their former training ground.
US private equity firm Dynasty Equity spent between $100 and $200 million on the purchase of the minority stake. They will be passive investors.
The money raised will go towards reducing the club’s debt burden. It will not be used to finance future transfers. Liverpool’s latest accounts to June 2022 showed net debt of £71m.
Liverpool have not been for sale and they are not for sale. Morgan Stanley and Goldman Sachs were brought in last November to explore investment opportunities.
Dynasty Equity’s investment is not a springboard to a sale. Liverpool’s owners, Fenway Sports Group, remain fully committed to owning and running the club.
Liverpool held discussions with other interested investment groups, but Dynasty Equity’s proposal was the only one that felt like the right choice.
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Dynasty Equity was founded last year by asset manager Jonathan Nelson and investment banker Don Cornwell. They plan to buy minority stakes in clubs around the world. The purchase of a minority stake in Liverpool is their first investment.
FSG bought Liverpool in 2010 for £300 million. According to Forbes, it is now worth more than £4 billion.
FSG chairman 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 suitable for Liverpool, we would seize the opportunity to secure the club’s long-term financial position. resilience and future growth.
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“We look forward to building on the long-standing relationship with Dynasty to further strengthen the club’s financial position and maintain our ambitions for continued success on and off the pitch.”
Jonathan Nelson, Executive Chairman of Dynasty, said: “We are honored to partner with FSG and support Liverpool’s remarkable legacy in a strategic partnership that builds on mutual respect and deep relationships between our respective teams.”