Significant investment appears on the way for Liverpool as a consortium involving Amazon founder Jeff Bezos prepares to buy a minority stake in the club.
Bezos, who is the world’s third-richest person with a net worth of around $278 billion, is joined by Facebook co-founder Eduardo Saverin and former Queens Park Rangers co-owner Amit Bhatia in the investment group, which is set to purchase 30 per cent of Liverpool from current owners Fenway Sports Group (FSG).
The reaction from supporters has been unsurprisingly mixed.
Scars remain from the ownership of Tom Hicks and George Gillett, who left the Reds in financial ruin before selling to FSG in 2010. Naturally, there is trepidation over new investment, especially with the reasons behind the consortium’s interest still unknown.
However, others view a reported $1.9 billion injection of funds through a rosier lens, expecting an increase in transfer business as a result.
So, what does the investment of Bezos and Co. mean for Liverpool in the market?
When Will Bezos Investment Be Finalized?
On Monday, it was revealed that Bezos’s consortium was “closing in on a deal” to purchase a stake in Liverpool, with talks having “accelerated quickly”.
While there is no exact timeframe for the finalization of the deal, the report claims it could be completed either this week or next.
What Does Investment Mean for Liverpool’s Transfer Business?
It’s no secret Liverpool need to bolster their playing squad this summer. Despite already recruiting Jérémy Jacquet ($80 million), Victor Muñoz ($46 million) and Ronald Araújo (loan), more new arrivals are needed for the club to properly compete during Andoni Iraola’s maiden season at the helm.
Frustration has been growing among supporters at the lack of activity, although Liverpool are currently working on an expensive deal for Bradley Barcola which could reach nearly $200 million. They are supposedly keen on his Paris Saint-Germain teammate Ibrahim Mbaye too, and further additions in other areas of the field cannot be ruled out before the deadline on Sep. 1.
However, even if the investment is completed before the transfer window shuts, it will have no impact on this summer’s business.
The Premier League’s Squad Cost Ratio rules limit how much each participating club can spend on players, with the transfer money pool dependent on revenue generated rather than the wealth of ownership groups. New investment won’t result in a raft of lucrative signings.
“The deal could be a straight share sale by FSG to the new group, in which case there would be no financial implications for the club itself,” soccer finance expert Kieran Maguire told BBC Sport.
Supporters Voice Concerns Over Investment
Liverpool fan group Spirit of Shankly, “SoS,” have publicly questioned fresh investment in the club, insisting questions need answering over the consortium’s intentions behind purchasing a stake.
“We would like to know what the buying consortium will get in return for their 30 percent stake,” a Spirit of Shankly spokesperson stated. “Specifically, what would be the level of involvement in the control of the club, and will they take a seat or seats on the board?
“And of huge importance, what due diligence is being done on the potential consortium of investors? Does this potential consortium have the best interests of the club at the forefront or is it a ‘trophy’ buy?”
SoS also wrote to Liverpool demanding greater clarity over the process.
“We reiterated that, given the events that led to FSG’s purchase of the club, who owns it and how they control it—putting the interests of LFC and its supporters first—is fundamental to us all,” their statement read.
“The latest report of a 30 percent sale and the consortium set up to buy it is significant. The ownership and custodianship of our club is paramount to SoS and all supporters.
“We have witnessed similar sales at other clubs resulting in notable changes in the running of that club and football operations, leading to decisions and behaviours that many would not want to see at Liverpool.”
