Liverpool start business: Bezos, Bhatia and next steps at Anfield | Liverpool
What happened?
A consortium led by Amit Bhatia, former owner of Queens Park Rangers and son-in-law of Indian steel magnate Lakshmi Mittal, has opened talks with Liverpool’s owner, Fenway Sports Group, about buying a significant stake in the club. Neither party has commented on the size of the stake or the amount of the investment being offered but it is believed to be a short-term offering of £1.35bn or around 30%. Talks started three months ago but FSG insists that talks are still in the early stages.
Where does this matter for Liverpool?
The reported offer values Liverpool at around £4.5bn. Manchester United was launched at a slightly lower price when Sir Jim Ratcliffe bought an initial 25% stake in February 2024, rising to 27.7%, although United’s latest valuation by Forbes was $7.2bn (£5.38bn). Forbes also had Real Madrid as the world’s most valuable club at $9.5bn, with Barcelona in second place at $7.5bn. Todd Boehly and Clearlake Capital acquired Chelsea for £4.25bn in May 2022 as a distressed asset sale after Russian oligarch Roman Abramovich was approved by the UK government.
Why might FSG want to sell a small part?
First of all, £1.35bn for 30% of Liverpool would represent a healthy profit for a club that bought for £300m in 2010 and has increased in value since then. And the big owner, John W Henry, is a capitalist, after all. But it is also true that FSG remains very competitive and to continue the challenge among elites including oil rich countries requires more investment. That is why FSG has sought, and occasionally found, new investors in the past. The current talks are not seen as part of an exit strategy by Liverpool’s owners but as a potential opportunity to attract more capital while maintaining overall control. The company has lined up plans to buy a second club – a decision that led to the recent departure of Michael Edwards as FSG’s chief football officer – and last summer funded Liverpool’s biggest ever investment of around £450m. To maintain and improve those levels, making a paltry £8m profit when they win the Premier League title under Arne Slot in 2024-25, requires injecting new cash into the club.
Have we been here before?
Several times. In March 2021, FSG sold 10% of the company to RedBird Capital Partners for £543m. In 2022, FSG hired investment banks Goldman Sachs and Morgan Stanley to look for potential buyers for a 10% stake in Liverpool. No deal was made and Henry confirmed the following year that FSG was always open to new investment but did not want to sell the team. In 2023, FSG sold a reported 4% stake in Liverpool to Dynasty Equity, an American sports investment firm, for £164m. That money was mostly used to pay debts incurred during the violence.
Who are potential investors?
Bhatia, who stepped down as owner and director of QPR on Tuesday after 18 years, is believed to have received funding from Mittal. The Mittal family fortune is estimated at £23bn. That wealth pales in comparison, however, to another potential investor – Amazon’s founder, Jeff Bezos. The world’s fourth richest man could buy Liverpool outright and still have $250bn left in his back pocket. Bezos has been approached about joining the conglomerate but is reportedly not clear on whether he will invest in a Premier League club for the first time. Bezos is no longer Amazon’s chief executive but remains the executive chairman of a company that has expanded from online retailing into entertainment and sports rights, including Premier League games, in recent years.
What would it mean for Liverpool’s finances?
Even without Bezos on board, the club’s proposed offer will boost Liverpool’s capital as the club embarks on a new era under Andoni Iraola. How much say and sway Bhatia and others will have over Liverpool’s football performance remains to be determined. With the president of FSG, Mike Gordon, returning to a more prominent role at the club after the exit of Edwards, it seems unlikely that the owners of Liverpool will follow the example of the Glazers and Ratcliffe at Manchester United and give a few shareholders complete control of the football side. With negotiations only in the early stages, Liverpool’s transfer plans this summer are not expected to be affected.
What happens next?
Negotiations continue until a deal is made or collapses. FSG’s willingness to confirm Bhatia’s bid in a statement to the Financial Times on Tuesday, along with Bhatia’s departure to QPR on the same day, indicates that negotiations are nearing a successful conclusion.
