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Liverpool owners have plan involving Saudi Arabia as £164m deal already confirmed

The Saudi Pro League is both a threat and a lifeline for clubs like Liverpool.

༺The cash from Saudi Arabia, whose transfer window shuts on Monday (2 September), has not flown quite as freely this summer as it did last.

In 2023, Fabinho, Jordan Henderson and Roberto Firmino all left Liverpool for Al-Ittihad, Al-Ettifaq and Al-Ahli respectively as as part of an £800m drive to bring some of the biggest🍨 names in football to the Gulf.

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

Saudi Ara𝐆bia is desperate to strengthen its domestic league in part because it is hosting of the 2034 World Cup, whicꦺh in turn is part of the nation’s efforts to diversity away from fossil fuels.

The oil-rich state is a hugely disruptive force in football and Liverpool owners Fenway Sports Group are more aware than most of their influence.

FSG have deal with the Saudi Public Investment Fund ♉first-hand as part♛ the potential merger between the PGA Tour and LIV Golf.

Howeveꦫr, Saudi money is just one part of an evolving sports investment la𒈔ndscape that the Boston-based group and Liverpool must navigate.

To explore the latest challenges and opportunities for Liverpool, TBR Football spoke exclusively to Liverpool Uni🍒versity football finance lecturer and Price of F🅰ootball author Kieran Maguire.

Private equity and the push for Liverpool matches overseas

Some commentators bel🎉ieved that American private equity’s 💙interest in Premier League football is diminishing.

However, half of all Premier League clubs have links to private weal🍷th in American, includܫing Liverpool on more than one front.

In September last year, the sports-focused private equity firm Dynasty Equity bought a significant mi⛦nor🐭ity stake in Liverpool for up to £164m.

Another sports-specific P/E fund called Arctos, who also ow༒n stakes in Paris Saint-Germain and Atalanta, also own a significant stake in FSG t👍hemselves.

Maguire says one ambition of the ambitions of these financial institutions is to take Premier League matches overseas, not just to the United States as has long been toute﷽d, but to Riyadh and Beyond.

“Private equity is good for private equity. Full stop.

“Private equity is not a fan of football. It is another industry, an extension of the entertainment industry rather than a sport.

“Therefore, you are looking for improvements in marker share, higher revenues, better cost controls and so on.

“Private equity wants higher prices for tickets and more matches because they are ultimately beneficial for their return.

“Is it good or bad for football? That is a 5,000-word dissertation.

“Private equity will do what is in its own best interests and will put pressure on clubs to do what is best to deliver that.

“If you’re born in L4, I don’t think private equity is good for you. They want to get rid of you and replace you with a tourist fanbase. They want Liverpool to be playing New York, Tokyo, Riyadh and so on.

“It ain’t gonna happen this year and I suspect it won’t happen in the next five years, but the long-term direction of travel is only going one way under private equity.”

Liverpool’s financial prospects in the new Champions League format

Liverpool learned their Champions League draw last night in a proceꦓss which, thanks to the conv🐻oluted new Swiss system format many found to be overwhelming.

Arne Slot‘s side Liverpool will face Real Madrid, RB Leipzig, Bayer L𒐪ever🦂kusen, AC Milan, Lille, PSV Eindhoven, Bologna and Girona.

The new format is setꦺ to see English clubs earn an average of £23m more per season, but a revised distribution system sees less emphasis place on clubs’ 10-year🤡 coefficients.

The 10-year coefficient syste🎶m was criticised as antimeritocratic, but Liverpool were one of the main beneficiaries given their record in Europe over the last decade.

However, Maguire highlights that 🐟the extra guarante𝐆ed revenue delivered by UEFA will more than offset any fall-off in terms of the previous system for Liverpool and FSG.

“Given that Liverpool were very much behind Project Big Picture and Super League, anything which reduces any of the elements that bring money into the club will be viewed with disdain by FSG.

“At the same time, that will be counterbalanced by the additional matches taking place at Anfield. There could even be five or six English clubs in the Champions League each season.

“At the moment, six clubs into four Champions League spots doesn’t go.

“Non-participation in the Champions League is Liverpool’s main concern, so the revamp of the 10-year coefficient system will be seen as a minor irritant but no more than that.”

Liverpool’s earning power in first full season at expanded Anfield

After spending nearly £200m on the redevelopment o♐f the Main Stand andღ Anfield Road Stands in recent years, 2024-25 is the first full season FSG will benefit from a 61,000-capacity Anfield.

Matꦓchday income could be worth up to £100m this campaign, seeing Liverpool on the coattails of Man United, Tottenham and Arsenal.

However, a recent study from Sports Business Institute Barcelona revealed that Livﷺerpool are lagging well behind Spurs and Chelsea when it comes to r𓄧evenge generated per fan, per matchday.

The two London clubs generated over £100.00 each, 🍌while Liverpool generated £79.00.

But Maguire anticipates that their lead over 🌄Liverpool will narrow over the next nine months.

“I expect to see an increase in this metric as far as Liverpool are concerned,” he forecasted.

“Spurs and Chelsea have the London premium. Spurs have got the Heung Min-Son premium as well.

“Chelsea have got the issue of Stamford Bridge not being fit for purpose, with only having a 41,000 capacity. It therefore has a greater proportion of the prawn sandwich brigade.

“As far as Liverpool are concerned, the expansion has made relatively few tickets available to local fans.

Photo by Simon Stacpoole/Offside/Offside via Getty Images
Photo by Simon Stacpoole/Offside/Offside via Getty Images

“The focus is very much on the membership scheme and the corporate sector.

“So I would expect to see Liverpool’s revenue per fan increase, but I would also expect to see the same at Spurs and Chelsea given the nature of the owners there.”