Liverpool opt to join multi-club model

Globalisation may be disappearing in other spheres of economic activity as protectionist barries are raised, but the spread of the multi-club model suggests that it is alive and well in football (soccer). Liverpool are the latest club to jump on board.

Ever since the appointment of Michael Edwards as chief executive of football at Fenway Sports Group (FSG) in March 2024, it has been clear the multi-club ownership model is coming to Anfield.

Edwards, Liverpool’s former sporting director, returned to the FSG fold with the belief that the club has little choice but to expand if it is to “remain competitive” in the Premier League and beyond. The key to that is an ambitious plan to invest in a partner club.

FSG’s multi-club plans mean falling in line with the Premier League crowd, effectively. Well over half of the 20 teams in the English top flight now have relationships with at least one other European club and the pattern has been extended in the past two years.

Liverpool had previously resisted the trend set by Manchester City’s ownership, who have amassed 13 teams around the globe under the City Football Group (CFG) banner — including Girona in Spain, Palermo in Italy and New York City in the U.S. – but there is an acceptance that the advantages of a multi-club model cannot be overlooked.

On Saturday, The Athletic reported that FSG is exploring a deal to purchase Spanish second-tier side Malaga. FSG’s immediate focus is on the stake of majority shareholder Sheikh Abdullah Al Thani.Malaga are 49 per cent owned by Spanish hotel and real estate group Blue Bay, while Qatari businessman Al Thani owns the other 51 per cent. The club currently find themselves in administration and under judicial control.

The group believes this is an opportunity to restore Malaga to the upper echelons of the Spanish and European game.Malaga reached the Champions League quarter-finals in 2013 but five years later were relegated from La Liga and have yet to return.

Earlier this week, Paris Saint-Germain’s owners Qatar Sports Investments (QSI) confirmed to The Athletic that the group is interested in adding Malaga to their portfolio, with a spokesperson saying: “QSI is exploring a range of investment opportunities across Europe and America currently”.

Since FSG pulled out of talks to buy troubled French outfit Bordeaux last July, there’s been an extensive audit of suitable alternatives with clubs across Europe analysed from financial, technical and geographical standpoints.

Since post-Brexit regulations came into force in 2021, English clubs are no longer able to sign players under the age of 18 from overseas. Owning a club in a country which is still a member of the European Union can help to circumvent those rules, as players can be based there until they reach adulthood.

For older players initially ineligible to get a work permit to play in the UK, placing them at another club can also be beneficial in terms of building up their qualification criteria.

It's no deal say Spurs insiders over Taiwanese takeover

Senior figures at Tottenham Hotspur insisted on Friday that they had not been informed of any deal to sell Daniel Levy’s stake in the club. A business group, Eight Sports Capital — which is said to include a billionaire Taiwanese financier — claimed that it had an agreement in place to buy a 24.99 per cent stake in ENIC, the club’s majority owners, from Levy, who owns 29.88 per cent. The Times has been told Ng Wing Fai and Brooklyn Earick form part of the group, having both been linked previously to potential takeovers of the Premier League club. The Taiwanese businessman, Richard Tsai, is also said to be part of the consortium. He is reportedly worth £7 billion. Last year Earick, the former DJ and tech entrepreneur, was part of an attempted £4.5 billion takeover, which was “unequivocally rejected” by Spurs. An ENIC spokesperson said: “We can confirm that neither ENIC nor THFC are aware of any sale by Daniel Levy’s Family Trust of its minority stake in ENIC, THFC’...

Hull City's 'strange' loan

When football finance guru Kieran Maguire seems flashing lights in a club's loan deal, I become concerned. He is the leading football finance expert in the UK. Hull City have borrowed £55m against their stadium and training ground yet they should get £30m from the Premier League before long. What is going on? https://www.bbc.co.uk/sport/football/articles/cpwel48y51do

Reports about Charlton sale exaggerated

Reports have appeared in The Guardian and elsewhere that Charlton has been put up for sale. Richard Cawley is an authoritative local journalist who runs a South London Sport substack site. He reached out to the club yesterday evening to ask for comment on The Guardian’s article. Early indications from the club have been that nothing has changed since the story about them seeking investment, except that it is now a different company doing it. Charlton have since managed to consolidate their place in the Championship, avoiding an instant return to League One, with their women’s side promoted to the WSL, returning to the top flight for the first time since 2007, although staying there is likely to be costly. It would be counter-intuitive for owners Global Football Partners not to progress the club when looking for investment, that the focus remains on driving it forward, that their spend this summer is in line with long-term planning and will see an increase in wages spent on players...

The Political Economy of Football V2

Search This Blog