New York-based private equity firm Dynasty Equity has completed a minority investment in English Premier League side Liverpool FC.
Liverpool owner Fenway Sports Group has been seeking additional investment since last year and Dynasty Equity’s acquisition of shares, thought to be worth between $100 million and $200 million, sees the completion of this search.
The club say the money will be used to pay down bank debts incurred during the Covid-19 pandemic and other capital expenses.
In a statement on Thursday, the club said: “The minority investment will primarily 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.”
It is not in Liverpool’s interests to reveal that it has extra funds for future player transfers as a result of new investment, but the deal has already been used to ease the outgoing costs incurred during the summer 2023 transfer window.
The new arrivals on the pitch have been largely successful so far, with Hungarian midfielder Dominik Szoboszlai, signed for $76million from RB Leipzig, looking like a particularly good piece of business.
The club also signed Argentine World Cup winner Alexis Mac Allister, Dutch midfielder Ryan Gravenberch, and Japan international Wataru Endo to complete a much-needed midfield rebuild costing around $200 million in total for the four new additions.
The club also says the deal with Dynasty Equity, a global sports investment firm, will see them “explore further growth opportunities” in the future.
There had been rumours that FSG were considering selling the club to a new majority shareholder, but the current Liverpool owners have always insisted that any sale of shares would come in the form of a minority investment, which is the case here with Dynasty Equity.
“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.
“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.”
It is another positive for FSG and Liverpool which has started the season well, but the world of soccer is unpredictable and the need for further investment in the sporting side of the club is never far away.
Under FSG, Liverpool has generally been good at recouping outgoing fees for players bought through player sales, but some form of spend is usually required to keep up with the Premier League’s numerous big spenders.
Liverpool and its manager Jürgen Klopp hope to challenge at the top of the Premier League again, having won the league title in 2020, and finishing runner-up in 2019 and 2022.
The club also won a Champions League and Club World Cup in 2019, and a domestic cup double of the FA Cup and EFL Cup in 2022.
“We are honoured to partner with FSG and support the remarkable legacy of Liverpool in a strategic partnership that builds upon mutual respect and deep relationships among our respective teams,” said Dynasty executive chairman Jonathan M. Nelson.
Dynasty’s chief executive officer, K. Don Cornwell, added: “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.”
Source: https://www.forbes.com/sites/jamesnalton/2023/09/29/liverpool-fc-receives-investment-of-up-to-200-million-from-dynasty-equity/