Fenway Sports Group has completed a deal worth up to $200 million to sell a minority stake of Liverpool FC to New York-based private equity firm Dynasty Equity, extending a push among many top-tier European clubs to bring on additional outside investors.
Led by Don Cornwell and Jonathan Nelson, Dynasty Equity will invest between $100 million and $200 million in the club, which is currently sitting in second place in the Premier League. FSG had sought for nearly a year to bring in additional partners, working with Goldman Sachs and Morgan Stanley.
Based on a recent valuation of $5.3 billion for Liverpool, the investment represents a stake of 1.9% to 3.8% and was made directly into the club, as opposed to FSG overall.
The funds will be particularly targeted to pay down pandemic-era club debt, make improvements to Anfield Stadium and the club’s training center, and fund player acquisitions.
“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.”
Continuing A Trend
This first investment for Dynasty Equity closely follows a growing series of other minority investments across the Premier League, Ligue 1, Serie A, and La Liga either sought or completed, including in Chelsea and Paris St. Germain.