Fenway Sports Group (FSG), the owners of Liverpool Football Club, are currently in discussions regarding the potential sale of a minority stake in the club. A consortium led by Amit Bhatia, formerly a co-owner of Queens Park Rangers (QPR), has expressed interest in acquiring this stake. FSG confirmed that they have been approached concerning this potential investment, though no agreement has yet been reached, with discussions described as being at an early stage.
Mr. Bhatia recently departed from the board of QPR, concluding an involvement that spanned years. He agreed to transfer his shares to the majority owner, Ruben Gnanalingam. In a statement on the QPR website, Mr. Bhatia reflected on his time with the club, stating that QPR had been a significant part of his and his family’s life since 2007. He expressed pride, gratitude, and affection as he stepped back from his formal responsibilities, thanking various individuals and groups within the club, and noting that QPR would always hold a special place in his heart.
FSG’s investment strategy
FSG, which also owns the Boston Red Sox and the Pittsburgh Penguins, acquired Liverpool in 2010 for £300 million. The group had previously indicated in 2022 that it was open to new investment in Liverpool, either through minority shareholders or a full sale. At that time, FSG stated that it frequently received expressions of interest from third parties seeking to become shareholders and would consider new shareholders under the right terms and conditions if it was in the best interests of the club.
While a full sale did not materialise, FSG did sell a minority stake in Liverpool to investment firm Dynasty in 2023. This deal was highlighted by FSG as a way to help offset bank debt incurred from infrastructure projects, including the redevelopments of the Main Stand, Anfield Road End, and the club’s Kirkby training ground. At the time of the Dynasty deal, FSG president Mike Gordon affirmed the group’s long-term commitment to Liverpool, aiming to strengthen the club’s financial position and sustain ambitions for continued success.
More recently, FSG explored the possibility of purchasing a second club in continental Europe to expand its portfolio. This multi-club model would have mirrored approaches taken by other club owners, such as those of Chelsea and Manchester City, who operate clubs in different territories. FSG examined potential acquisitions, including Spanish sides Malaga and Getafe, as well as French club Bordeaux. However, FSG ultimately did not proceed with any of these deals and is now understood to have moved away from the multi-club model.
This decision to forgo the multi-club approach led to the departure of Michael Edwards last month. Mr. Edwards, a former Liverpool sporting director, had been rehired by FSG specifically to lead the multi-club project. The club’s current sporting director, Richard Hughes, is managing the transfer strategy for the current summer and has a contract extending until summer 2027, though he is believed to be open to a future move to Saudi Arabia.
Potential impact and valuation
The consortium led by Mr. Bhatia includes his father-in-law, Lakshmi Mittal, an executive of the steel and mining company ArcelorMittal. Forbes recently valued Mr. Mittal’s fortune at £23.2 billion. In May of this year, Mr. Mittal partnered with Adal Poonawalla to acquire a controlling stake in the Indian Premier League team Rajasthan Royals.
Forbes recently valued Liverpool at £4.6 billion. The potential transaction with Mr. Bhatia’s consortium, if it proceeds, is expected to be along similar lines to the 2023 deal with Dynasty. Liverpool principal owner John W Henry has maintained a lower public profile regarding club matters since acknowledging and apologising for his role in the European Super League project in 2021.
Source: bbc.co.uk