Liverpool has secured a £160m US investment from American sports investment firm Dynasty Equity, following a year-long search for funding by Fenway Sports Group. The deal confirms FSG's desire to remain Liverpool owners for the foreseeable future, but it will not mean an increased transfer kitty for manager Jurgen Klopp. Dynasty has bought a small percentage of shares for a figure between $100 million-200 million (£82 million – £164 million). Liverpool says the exact price and percentage shareholding will remain confidential as they do not wish to put a definitive price on the club's value.
The deal has been agreed to strengthen Liverpool's overall financial health, with the club still recovering from significant losses since the pandemic. Despite record revenues of £107 million announced in the last set of accounts, club profits were at just £7.5 million. This was after a season in which Liverpool nearly won the quadruple and was a legacy of losses above £100 million after Covid-19 halted match-day revenues. In addition, the financial commitment to building the new £80 million Anfield Road stand and a £50 million training ground.
Club sources have indicated that the Dynasty deal will pay off these debts so that the business will return on an even keel. Effectively, the incoming revenues have already been spent. A club statement read: “The minority investment will primarily be used to pay down bank debt incurred during the global pandemic and capital expenses made to enhance Anfield Stadium, build the AXA Training Centre, repurchase Melwood training ground and, most recently, acquisitions during the summer transfer window. Longer term, the partnership between Dynasty and FSG will also explore further growth opportunities for Liverpool F.C.”
Liverpool will become their first significant investment, although the co-founders have an established history working within sports markets. Dynasty's chief executive officer, Cornwell, said: “Liverpool is one of the most iconic football clubs in the world with a passionate fanbase and significant global reach. Dynasty is privileged to support the club and work alongside FSG to execute the tremendous growth opportunities ahead.”
For Liverpool, the deal draws a line under a process which picked up pace a year ago. Fenway Sports Group are no longer proactively involved in a ' sale process' and insists they retain a long-term commitment to owning the club. In effect, the Dynasty money has already gone, preserving the immediate and long-term health of the Merseyside club. For their part, Dynasty’s personnel bring experience and expertise in assisting the financial health of sporting institutions, even though they are a fledgling company founded in 2022.
Regarding Klopp’s future transfer kitty, it is business as usual. FSG are sticking with their self-sustainability model and remains adamant it will never put the club’s finances at risk because of the whims of an increasingly expensive, volatile, and bonkers transfer market.
FSG's investment in Liverpool has been met with mixed reactions from fans, with some criticising the financial limitations compared to rivals. However, Klopp's strong working relationship with the FSG hierarchy has been crucial in his regular contract extensions. The Dynasty deal has brought reassurance to Klopp, who has been able to maintain standard contract extensions. Liverpool is now in a better position than when the deal was announced, and the young side is rapidly emerging. The agreement is about economic security, not the ushering of an era of spectacular player spending.
This article is republished from The Telegraph on Football news. Read the original article.
