FSG raise up to $200m from Dynasty Equity for minority Liverpool stake to pare down debt

September 29 – Liverpool owner Fenway Sports Group has completed a sale of a minority stake in the club to New York-based private equity firm Dynasty Equity of up to $200 million.

Dynasty Equity, set up last year by Don Cornwell and Jonathan Nelson, describes itself as “a global sports investment firm focused on acquiring minority interests in sports franchises and other related assets and rights”.

The stake in Liverpool, assuming a recent Forbes valuation of $5.3 billion, will be worth between 2-4% of the club’s equity.

FSG were quick to say that the new investment did not signify the start of their exit from Liverpool.

“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,” he continued.

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

The club said the new money would be primarily used “to pay down bank debt incurred during the COVID-19 pandemic and capital expenses made to enhance Anfield, build the AXA Training Centre, repurchase Melwood training ground and, most recently, acquisitions during the summer transfer window.”

Liverpool estimate the Covid losses at £100 million and have an £80 million renovation of the Anfield Road stand underway. The club invested £12 million on repurchasing Melwood and spent £135 million in the summer transfer window.

Dynasty’s chief executive officer, K. Don 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.”

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