Dynasty Equity takes stake worth $200m in Liverpool Football Club

Sep 28, 2023 | News

Fenway Sports Group’s search for investment in Liverpool has reached a conclusion, with the Reds owners reaffirming that they are not looking at an exit route from the club.

New York-based Dynasty Equity, have taken a small minority position in the club, with the move designed to clear the club’s bank debt and not to fund transfer market activity. The value of the deal has not been disclosed but is understood to be between $100m and $200m. There will be no change in operational control at the football club.

Since November 2022, when it emerged that FSG had created a sales deck to present to potential investors, investment talk has dominated much of the discourse around the football club off the field. 
 

John W. Henry, FSG chief and Liverpool’s principal owner, had made it clear earlier in the year that the club was not for sale, and the closing of the deal with Dynasty Equity draws a line under the matter, with the ECHO understanding that there is no further search for a minority partner now being conducted and the club is not, and has never been, for sale.

Talks of potential interest from sovereign wealth funds such as the Qatar Investment Authority were erroneous, with ECHO sources in the US close to the matter stating on several occasions that no such talks ever took place.

The potential for a partner that could help the club grow off the field by bringing on board additional expertise as well as capital had been considered, but a move to bring Dynasty Equity on board solves a debt issue that FSG had been seeking to address, placing the club on an even sounder financial footing. It also sees them align with a firm with whom they have an existing relationship.

Co-founded and led by Jonathan M. Nelson and K. Don Cornwell, Dynasty Equity is a global sports investment firm focused on acquiring minority interests in sports franchises and other related assets and rights.

“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. We look forward to building upon the longstanding relationship with Dynasty to further strengthen the club’s financial position and sustain our ambitions for continued success on and off the pitch.”

The minority investment will primarily be used to pay down bank debt incurred during the global pandemic and capital expenses made to enhance Anfield Stadium, build the AXA Training Centre, repurchase Melwood training ground and, most recently, acquisitions during the summer transfer window. Longer term, the partnership between Dynasty and FSG will also explore further growth opportunities for Liverpool.

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“We are honoured to partner with FSG and support the remarkable legacy of Liverpool in a strategic partnership that builds upon mutual respect and deep relationships among our respective teams,” said Dynasty Executive chairman, Nelson.

Dynasty’s CEO, Cornwell, added, “Liverpool is one of the most iconic football clubs in the world with a passionate fanbase and significant global reach. Dynasty is privileged to support the Club and work alongside FSG to execute on the tremendous growth opportunities ahead.”

A senior advisor to Dynasty Equity is David Ginsberg, an FSG partner and former director and vice-chairman of Liverpool. Ginsberg has served as a vice-chairman of FSG since its founding in 2002 and was a key player in the analysis, financing, negotiation, and execution of FSG’s acquisitions of the Boston Red Sox, New England Sports Network, Liverpool, RFK Racing, the Pittsburgh Penguins, and Henry’s sale of the Florida Marlins prior to his acquisition of the Red Sox.

Morgan Stanley and Goldman Sachs served as financial advisors to FSG on the transaction.

Source: ECHO

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