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Liverpool have £1.4bn takeover opportunity as FSG weigh up four options

Recent developments have highlighted why Liverpool owners Fenway Sports Group are drawn to one particular market as they explore takeover opportunities.

Liverpool are the only football club in FSG’s portfolio, which includes baseball giants the Boston Red Sox and NHL side the Pittsburgh Penguins among 17 sports and media properties in total.

The group acquired Liverpool for £300m in 2010 and, if they were to sell the club tomorrow, would almost certainly generated a minimum 10x return on that investment.

Photo by Matthew Ashton - AMA/Getty Images
Photo by Matthew Ashton – AMA/Getty Images

FSG have earned a reputation as among the most astute operators in the Premier League, and they now appear keen to cast their net wider in the world of football business.

They will not do so in France after talks to acquire historic but debt-ridden Bordeaux collapsed last week.

However, the latest news highlights why FSG’s next acquisition could be in South America rather than Europe.

Liverpool eye Brazilian takeover amid £1.4bn development

FSG have long been looking to create a multi-club network in the style of Man City’s City Football Group or the Red Bull football network.

But while the talks with Bordeaux appear to be the furthest they have got so far, the Boston-based group have also been linked with a number of other clubs.

Specifically, FSG have explored opportunities with four Brazilian clubs – Cruzeiro, Botafogo, Athletico Paranaense and Internacional.

Brazil is perhaps the most significant football nation on earth and, aside from the MLS, is perhaps the fastest growing in terms of finances.

Significantly, a new study from industry experts has found that Brazilian top-flight clubs’ revenue totalled £1.4bn in the last financial year.

That is an increase of almost £310m on the previous year.

For context, the top clubs in Brazil are now earning more than several Premier League sides despite their TV deal being worth roughly one-tenth of the English top flight’s.

Given that FSG will eye any takeover in Brazil as a capital appreciation project, soaring revenues will be highly attractive if they can get in at the right time.

TBR Analysis: Why do Liverpool want to create a multi-club network?

Headed up by John Henry, FSG have seen the recruitment and commercial benefits of owning multiple clubs across numerous territories and decided enjoyed by Man City they want in.

However, FSG are believed to be pursuing a different model to Man City.

Photo by Maddie Meyer/Getty Images
Photo by Maddie Meyer/Getty Images

City Football Group also have an outpost in Brazil with Bahia, who they bought for around £120m last year.

However, it has been reported that any club taken over by FSG would operate as more of a standalone entity rather than simply as a feeder club for Liverpool.