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FSG have created smokescreen as ploy for Liverpool to hit £100m target

Adam Williams

Fri 29 November 2024 18:15, UK

Given that FSG is one of the most valuable sports empires in the world, it is understands that Liverpool supporters often call on their owner to take the handbrake off in the transfer market.

John Henry and his peers at Fenway Sports Group HQ command a portfolio worth, according to various analyses, over £12bn. Liverpool alone are probably valued at £5bn-plus.

While cash rich and asset rich a🐻re different categories, it is not like the Boston-base investment group are str🎃uggling in terms of liquidity either.

Just last year, they sold a tiny fraction of their eq▨uity in Liverpool to the sports-specific private equity fund Dyn꧟asty Equity for around £200m.

That came a little over two years after FSG sold another minority stake in their own corporate structure to private equity firm RedBird Capital for an astonishing £533m.

FSG would point to their success on the pitch under Arne Slot this season as evidence that, when it comes to recruitment and retention💫, less is sometꦺimes more.

Liverpool ended the summer with a positive net spenღd.

For context, Cry♉stal Palace, Wolves, Manchester City and Newcastle United were the only other clubs to finish the winﷺdow with their balance sheet written in green rather than red ink.

So why don’t FSG spend more? The answer is multi-faceted and, as Liverpool University football finance Kieran Maguire tells TBR Football, is not always the story the owners present to🦋 fans.

• READ MORE: Liverpool on course for £175m jackpot that easily funds Mohamed Salah and Trent Alexander-Arnold coཧntracts

Liverpool are using PSR as ‘pantomime villain’

This week, influential supporter groups from Liverpool, Manchester United, 𒀰Everton and Manchester City announced that they would protest against rising ticket prices this weekend.

“It’s time for clubs to remember that their wealth and success are built on the unwavering loyalty of their supporters,” Gareth Roberts, a represe🍎ntative of the fan group Spirit of Shankly said.

“Raising prices when financial pressures on fans are at an all-time high is an insult. We’re proud to unite with fans from Manchester in this campaign to fight for fairness.”

Liverpool earned £80m through the turnstiles in 2💧022-23, the last financial year on record. When released, their accounts for 2023-24 will see that figure rise to about £93m.

But as part of their efforts t🌳o smash the £100m barrier, FSG – like almost every other Premier League club – have hiked ticket prices once again this 🦩season.

In briefings to journalisꦆts, clubs often cite PSR (Profit and Sustainability Rules) as rea♏son for the cost of tickets going up.

That might be valid for some clubs whose PSR margins are razor thing but not that is simply not the case at Liverpool, as Maguire tells TBR.

“With Liverpool playing the football they have been doing this season, FSG are in a very sound position financially and operationally,” said the Price of Football author.

“From a moral and ethical perspective, the justification isn’t there.

“They still have schemes in place for juniors, and you have to give them credit for that. But we don’t know how many tickets are available under that, even though they trumpet it very well.

“I think a lot depends on how you define success here. My gut feeling is that the clubs repeat the line that they don’t want to do this but use PSR as the pantomime villain.

“That is despite the fact that they were the creators of PSR.

“Secondly, if you monitor social media, there is a significant minority of fans who says ‘why shouldn’t they charge more?’

“Economics 101 dictates that you keep increasing prices until equals demand. Demand is huge, so it’s a complicated one.

“You have to give the likes of Spirit of Shankly credit for engaging with the club.

“That kind of thing won’t fall on deaf ears, but my prediction is that the clubs will ride it out.”

• READ MORE: FSG may⛦ have handed Liverpool a bran♏d new transfer budget as Michael Edwards ‘promised’ January funds

FSG’s transfer plans: Do Liverpool have money to spend in January?

With Liverpool top of both the Premier League🦩 and the Champions League tables, supporters are crying out for FSG to capitalise on the ღmomentum.

Position	Team	Played MP	Won W	Drawn D	Lost L	For GF	Against GA	Diff GD	Points Pts
1	LiverpoolLiverpool	12	10	1	1	24	8	16	31
2	Man CityManchester City	12	7	2	3	22	17	5	23
3	ChelseaChelsea	12	6	4	2	23	14	9	22
4	ArsenalArsenal	12	6	4	2	21	12	9	22
5	BrightonBrighton	12	6	4	2	21	16	5	22
6	TottenhamTottenham	12	6	1	5	27	13	14	19

Liverpool have been linked with the likes of Fulham’s Antonee R𝐆obinson and Atalanta Matteo Ruggeri in recent weeks.

But the buzz in January will be around on the futures of Mohamed Salah, Trent Alexander-Ar🎃nold and Virgil van Dijk, who are all free to negotiate with overseas teams with six months left on their deals.

As with that legendary Anfield trio, there is no doubt th𝄹at FSG have the capacity to spend, eit♉her on new contracts or signings.

The question will boil down to whether value presents itself in the market. FSG’s approach is forensic and centres on recruiting and retainin♛g players whose value is appreciating, not depreciating.