Liverpool, Red Sox owners FSG confirm RedBird investment — now valued at $7.35bn

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Who are RedBird?

RedBird were founded by Gerry Cardinale, who is the managing partner of the company.

They manage $4 billion of capital and focus on company-building, while looking to earn equity returns over a longer holding period.

What does this deal mean for Liverpool FC?

This investment will allow continuity and stability for a club which has been hit hard by the impact of the global pandemic. Anfield officials now estimate that COVID-19 has cost them £120 million in lost revenues. The owners chose to carry those costs in the form of additional debt and borrowing against FSG rather than Liverpool specific as it made more sense financially.

A portion of the Red Bird investment will be new capital on the FSG balance sheet to reduce the debts incurred over the past 12 months running organisations such as Liverpool.

The benefit to Liverpool of using capital from this for FSG debt reduction is it removes the risk of the club’s plans to redevelop the Anfield Road stand being jeopardised by the ongoing financial crisis. Back in December, Liverpool submitted a planning application for a £60 million project which would increase Anfield’s capacity to around 61,000.

What about any impact on money to spend on transfers?

Aside from the Anfield Road plans, the additional benefit to Liverpool of the structure of this investment is that it allows for funding for player recruitment and retention in line with Liverpool’s normal strategy and practices.

It won’t suddenly give Jurgen Klopp a massive transfer kitty for the summer window. But it will enable Liverpool to operate as they would usually — despite the unprecedented losses incurred due to the pandemic.

What has been said?

FSG’s leadership group said: “Over the years, Fenway Sports Group has been able to attract a dedicated group of executives and partnerships seeking to compete for titles in the most challenging and rewarding landscapes.

“Our strategic partnership with Gerry and the entire team at RedBird will enhance our ability to pursue future growth opportunities in a more accelerated way but with the same selectiveness that has served us so well.

“We are also pleased to welcome to our ownership group LeBron, Maverick and Paul, with whom we have enjoyed a successful collaboration for well over a decade. Their addition is an important milestone for FSG and expands and deepens a longtime friendship and relationship that began in 2010.

“To our fans and supporters: Winning continues to be the driving force for all of us. The growth of FSG as an organization allows us to further strengthen our resources and commitment to the communities we serve, and we look forward to having these talented new partners join us in the next chapter of FSG’s evolution.”

Cardinale added: “Fenway Sports Group is unique not only for the quality of its sports properties and assets but for the highly disciplined, results-oriented organisation that John, Tom, Mike and the FSG team have built over the past 20 years. RedBird shares the same passion for performance-driven investing, business operations, fan experience and service to the community.

“We look forward to contributing our experience growing premier sports properties and working alongside this tremendous leadership team, including our fellow new owners LeBron, Maverick and Paul.”

(Photo: Visionhaus/Getty Images)