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Fenway Sports Group (FSG) has announced that it has sold a minority stake in Liverpool FC to US private equity firm Dynasty Equity, according to a report by The Guardian.
FSG and Dynasty have not divulged the deal's financial details but are in the region of £82m-£164 million. Dynasty is an investment company that specialises in acquiring minority stakes in sports franchises.
The investment will be used to pay down bank debt incurred 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.
"Our long-term commitment to Liverpool remains as strong as ever," said FSG president Mike Gordon. "We have always said that if there is an investment partner that is right for Liverpool then we would pursue the opportunity to help ensure the club's long-term financial resiliency and future growth."
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"We look forward to building upon the long-standing relationship with Dynasty to further strengthen the club's financial position and sustain our ambitions for continued success on and off the pitch," Gordon added.
The Reds lost £100m of revenue during the Covid-19 pandemic, also spent about £50m on a new training ground in Kirkby, which opened in 2020, as well as £12m repurchasing their previous Melwood training base for use by the women's team.
After the completion of the new £114m Main Stand, which opened in 2016, the ongoing development of the Anfield Road Stand is estimated to cost about £80m.
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The Reds also spent about £145m on transfers in the summer, bringing in midfielders Dominik Szoboszlai, Alexis Mac Allister, Wataru Endo and Ryan Gravenberch.
FSG are understood to be keen to reduce the bank debt Liverpool has amassed through the financing of the recent infrastructure projects and began considering outside investment after the pandemic. FSG, who bought Liverpool in a £300m deal in 2010, wanted a minority investor and held talks with several interested groups before reaching a deal with Dynasty. In the long term, Dynasty and FSG will explore further growth opportunities for Liverpool.
"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 on the tremendous growth opportunities ahead," Dynasty's Chief Executive Officer (CEO), K Don Cornwell, said.
Liverpool FC
One of the most passionately followed clubs in the world, Liverpool Football Club competes in the Barclays Premier League, and has won 19 league titles and six European Cups. Steven Gerrard, Fernando Torres, Luis Suarez, and Mohammad Salah are some of the most popular footballers who have been known to be associated with the Reds.
