Fenway Sports Group is looking for a minority stake in Liverpool
Liverpool is likely to continue their search for a “strategic partner” investment.
Last week the Reds’ major owner John Henry, in a Q&A with the Boston Sports Journal, disclosed Fenway Sports Group were not trying to sell the club and a minority partner was their preferred course of action, with Henry adding FSG were ‘talking to investors’.
Back in December, well-placed financial sources in the US told the ECHO that FSG preferred to work with a’strategic partner,’ potentially a media and entertainment company that could provide capital as well as expertise in how to scale the business going forward, potentially with the goal of acquiring a minority stake.
Following Henry’s comments, which put to rest gossip that had dominated the agenda since November, the focus has shifted to accelerating talks with potential investors and recapitalizing the business ahead of what is expected to be an expensive summer rebuild that will necessitate a significant dent in cash flow.
The Liverpool owners were reportedly ‘looking at large media organizations as potential investors to take a minority part in the club’ on Wednesday, according to the Telegraph.
Liberty Media, the world’s largest sports conglomerate, was highlighted in the report as one of the prospective prospects for such investment.
Liberty Media, owners of Formula One and the Atlanta Braves, as well as substantial media ventures such as the global SiriusXM radio network, have a portfolio worth $20.8 billion, according to Forbes’ most valuable empires list, with FSG ranking fourth at $10.4 billion.
Greg Maffei is Liberty Media’s president and CEO. He formerly served as chairman of the Starz TV network and Liverpool sleeve sponsor Expedia, as well as chief financial officer of Oracle and Microsoft.
According to the story, when asked by the Telegraph, Liberty Media declined to react.
FSG is believed to be leaning toward a strategic partner given their desire to find ways to grow the business further, recapitalize for a summer rebuild, and potentially give them an exit route further down the road by selling a slice to a partner with whom they can be happy bedfellows who could buy them out in the future.