Liverpool Owners To Sell RedBird Capital
Article originally found at Inside World Football
Liverpool owners Fenway Sports Group (FSG) are reportedly on the verge of agreeing the sale of 10% in the holding company for a reported $750 million.
The proposed sale, reported by Sportico, would value FSG – whose main assets are Premier League champions Liverpool and Major League Baseball’s (MLB) Boston Red Sox – at over $7 billion. Liverpool would make up about $2.5 billion of that amount.
The buyer is former Goldman Sachs banker Gerry Cardinale via his private equity firm RedBird Capital.
Cardinale has been circling around FSG for a while though talks between RedBall Acquisition Corp – a joint venture acquisition vehicle with Billy Beane which has invested in a number of financially challenged second tier European clubs – ended in January, though an alternative deal structure was reportedly being sought.
RedBird owns Toulouse FC in France’s Ligue 2 as well as a minority stake in the influential LA-based Wasserman Media Group.
FSG and Liverpool in September 2016, dismissed rumours of a sale following an offer of £800 million for the club by Chinese consortium led by the China Everbright Group, working through PCP Capital Partners, the financial corporate consultancy of Amanda Staveley. The bidder at the time said that they were prepared to break the £1 billion barrier for the club, though FSG refused to engage.
Since then Liverpool have won the Champions League and the Premier League under Jurgen Klopp’s management.
The Liverpool valuation shows the huge disparity between clubs in the Premier League, at least four of whom are currently available to buy. While Liverpool are valued upwards of £2 billion, Burnley were recently bought for £150 million, while Southampton had a deal for £200 million collapse though are understood to be close to a sale with a new buyer.