It was October 15, 2010, when Fenway Sports Group, then known as New England Sports Ventures, completed its £300million takeover of Liverpool. The debt-ridden Premier League giants had been pulled back from the brink of administration after the destructive reign of Tom Hicks and George Gillett. “I am proud and humbled,” principal owner John W Henry told reporters. “I can’t tell you how happy I am. We’re here to win.”
It took FSG time to get the right personnel and structure in
place after the mess inherited from Hicks and Gillett.
This summer’s record-breaking spending spree, following last
season’s title triumph, underlined how increasing revenues have allowed
Liverpool to buy established, elite talent rather than untapped potential.
Liverpool’s total outlay was around £449m, including
add-ons. No club in the Premier League era has ever spent more in one window,
but they also generated up to £260m from sales. “It’s been years in the making,” CEO
Billy Hogan told The Athletic in July. “One of the things
we’re constantly focused on is that ‘virtuous circle’. Trying to run the club
in the right way to ensure that we can generate as much revenue as we can. That
helps put more back into the team, which is incredibly important.”
It’s hard to overstate the mess the previous ‘custodians’ of
the club — Hicks and Gillett — had created. There was £200m owed to the Royal
Bank of Scotland, which could have put the club into administration.
If you look at the accounts of Liverpool then, it actually
obscures the seriousness of the position because all the debt was in a holding
company called Kop Football Holdings. But the only asset Kop Holdings had was
Liverpool, so you can work out who was going to be on the hook for it. In two
years of Kop Holdings, interest payments on the debt were £65m. In the 14 years
under FSG, Liverpool have paid just £50m in interest payments.
FSG’s methods have been very different from some of its
competitors. In the first five or six years, FSG put in around £170m to get the
club on an even keel, and to rebuild the Main Stand at Anfield, but it hasn’t
just poured in endless money. FSG’s decision-makers wanted Liverpool to be
self-sustaining. For the most part, they have got them there.
There have been missteps, but there has been a
professionalisation behind the scenes while not losing sight of the fact that
Liverpool are still a football club. You can pinpoint a clear strategy
throughout, which is harder at other clubs. It’s made more impressive when you
consider that FSG hasn’t just poured in endless amounts of money every year.
After that initial £170m in the first six years, there was
nothing really until 2023-24 when it sold a stake of between 1.9 per cent and
3.8 per cent to U.S. sports investment Dynasty Equity and put that
money (£127.3m) into the club. Most of FSG’s investment has gone on
infrastructure projects, such as redeveloping Anfield. That’s been frustrating
to some fans but it is a lot healthier than sinking cash into transfers and
wages.
Three years ago, FSG was briefly open to the possibility of
selling up before opting to offload a small minority stake to Dynasty. Now the
sale of an asset that has grown in value from around £300m in 2010 to more than
£4billion is far from their thoughts. Sources close to the owners insist they
are planning for the long term with Liverpool as part of their portfolio.
FSG also remains committed to buying a second football
club in Europe, which it believes could help Liverpool recruit and develop
young players. It was also key in tempting Edwards to return in March 2024.
There was always an acceptance that it would be a case of waiting for the right
opportunity rather than rushing into anything.
One of FSG’s greatest triumphs has been the redevelopment of
Anfield. It was one of the biggest issues they inherited, but rebuilding both
the Main Stand and Anfield Road Stand lifted capacity from 44,000 to 61,000. An
iconic arena was modernised while retaining its history and tradition.
Close to £300m has been invested in the club’s
infrastructure when you factor in building the new training ground, buying
back and renovating the old Melwood centre for the women’s team, and the new
club store at Anfield. The Athletic revealed last month that
FSG has also committed to spending £20m on an extensive overhaul of the
academy.
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