FSG sell minority stake in Liverpool to investment firm for up to $200m

Julian Miller
By:
Julian Miller
29/09/2023
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FSG have sold a minority stake of Liverpool FC.

Liverpool owners FSG have sold a minority stake in the club to a US investment firm in a deal that could be worth up to $200m USD ($311.4m AUD).

News Insights

  • FSG has sold a minority stake of Liverpool FC to Dynasty Equity.
  • Dynasty Equity is a New York-based private equity firm.
  • The deal is reportedly worth between $100m-$200m USD ($115.7m-$311.4m AUD).
  • New funds will be used to pay down bank debt.

Liverpool FC owners, Fenway Sports Group (FSG), have announced that it has sold a minority stake of Liverpool to the investment firm Dynasty Equity. 

Dynasty Equity is a New York-based private equity firm. According to their website, “Dynasty is a global sports investment firm focused on acquiring minority interests in sports franchises and other related assets and rights.”

FSG have not disclosed the percentage stake of Liverpool they have sold or the amount the undisclosed stake has been sold for. Most reports claim Dynasty Equity acquired their stake in Liverpool for between $100m-$200m USD ($115.7m-$311.4m AUD).

FSG finally sell stake

FSG made it clear over a year ago that they were looking at selling some of their stake in Liverpool. The news of Chelsea’s takeover and the several proposed Manchester United takeovers made many people forget about this, but it is clear FSG never gave up on their efforts. 

After a year of searching, FSG has sold a minority stake of Liverpool FC to Dynasty Equity. The deal is reportedly worth between $100m-$200m USD ($115.7m-$311.4m AUD).

Minority investment strategy paying off for big clubs

In the past, a club owner selling a portion of their stake in a club was cause for concern. It usually meant the current owner was looking for a way out and was likely going to start withdrawing their funding of the club. 

Now, sales of minority stakes are standard operating procedure for big clubs. Chelsea’s new ownership group has already raised funds through minority stake sales multiple times in their short time at the helm of Chelsea. 

Other clubs like PSG and Wolverhampton Wanderers have also used minority stake sales to fund transfer acquisitions and remain FFP compliant. 

Cash injection will not improve squad

Whenever fans of a club hear about big cash injections or added investment, their minds immediately start thinking about the transfer market. With so much money coming into a club, it makes sense to think that it will be spent on new players. Unfortunately for Liverpool fans, this will not be the case. 

The $100m-$200m USD ($115.7m-$311.4m AUD) raised through the Dynasty Equity sale will reportedly nor be made available to manager Jurgen Klopp so that he can improve his squad. 

Instead, those funds will be used to pay down bank debt acquired “during the COVID-19 pandemic and capital expenses made to enhance Anfield, build the AXA Training Centre, repurchase Melwood training ground and, most recently, acquisitions during the summer transfer window.”

For now, Liverpool and Jurgen Klopp will have to do with the squad they have, which really is not that bad. bet365 currently has Liverpool as second favourites to win the Premier League. Most betting sites give them similar chances. 

If this investment from Dynasty Equity has the long-term stabilising effect FSG think it will have, Liverpool could soon be genuine contenders again.