Last edited:
Football Finance
- Thread starter King Binny
- Start date
- Latest activity Latest activity:
[article]
This Is Anfield • Liverpool FC News •
Liverpool confirm new sponsorship deal as part of £35m agreements
The American firm becomes the club’s first ever global logistics and shipping partner.
The partnership is expected to boost Liverpool’s retail and e-commerce operations, allowing fans to get their hands on merchandise quicker and more efficiently.
News of this latest sponsorship after Liverpool recently confirmed deals with both Peloton and Google.
This Is Anfield understand that trio of partnerships is set to net the club as much as £35 million.
Ben Latty, the club’s commercial director, said: “We are proud to be announcing this global partnership with UPS.
“As one of the world’s largest companies, UPS are bringing a wealth of knowledge and expertise to our already successful retail operations.
“We are looking forward to seeing the impact this will have, and how it will improve fans’ experiences around the world.”
Kevin Warren, chief marketing and customer experience officer at UPS, added: “We’re proud to be the official logistics sponsor of Liverpool Football Club.
“Our global, integrated logistics network means we can offer unmatched speed and reliability as LFC continues to grow its retail operations.
“We’re ready to deliver team spirit and pride to LFC fans – no matter where they are in the world.”
Liverpool recently renewed their shirt sponsorship deals with Standard Chartered and Expedia, with AXA also listed as a principal partner.
Carlsberg, Wasabi and Nivea Men are among the club’s other official partners, with deals also struck with VistaPrint, EA Sports, Cadbury and SC Johnson.
[/article]
This Is Anfield • Liverpool FC News •
Liverpool confirm new sponsorship deal as part of £35m agreements
- September 19, 2023
- David Lynch
The American firm becomes the club’s first ever global logistics and shipping partner.
The partnership is expected to boost Liverpool’s retail and e-commerce operations, allowing fans to get their hands on merchandise quicker and more efficiently.
News of this latest sponsorship after Liverpool recently confirmed deals with both Peloton and Google.
This Is Anfield understand that trio of partnerships is set to net the club as much as £35 million.
Ben Latty, the club’s commercial director, said: “We are proud to be announcing this global partnership with UPS.
“As one of the world’s largest companies, UPS are bringing a wealth of knowledge and expertise to our already successful retail operations.
“We are looking forward to seeing the impact this will have, and how it will improve fans’ experiences around the world.”
Kevin Warren, chief marketing and customer experience officer at UPS, added: “We’re proud to be the official logistics sponsor of Liverpool Football Club.
“Our global, integrated logistics network means we can offer unmatched speed and reliability as LFC continues to grow its retail operations.
“We’re ready to deliver team spirit and pride to LFC fans – no matter where they are in the world.”
Liverpool recently renewed their shirt sponsorship deals with Standard Chartered and Expedia, with AXA also listed as a principal partner.
Carlsberg, Wasabi and Nivea Men are among the club’s other official partners, with deals also struck with VistaPrint, EA Sports, Cadbury and SC Johnson.
[/article]
Couple of things on the UPS deal.
Firstly, they're not some tinpot brand trying to sportswash their reputation, so that's a plus.
Secondly, this is the kind of deal that works well for the commercial guys, but in truth it's a bit lazy. Basically, they post a solid turnover number (and get big bonuses off it) but the sell to the sponsor is that the net cost to them is lower because they get a load of business off LFC that they weren't going to get otherwise, and this offsets their cost - that's why I say it's a bit lazy. if they were doing it properly they'd get a deal with someone who didn't want a kickback (albeit legitimate).
Win wiin on the face id it, but chances are the retail guys will be pissed off as they'll have to change a lot of things in how their sale process works, including building in, I'd expect, an exclusive UPS delivery option. This may well get the gear to punters a day or so quicker than the existing options, but likely at a cost, which in some cases may be prohibitive for overseas buyers and lead then to buy some blag gear locally instead. Plus, in the post Brexit world, dealing with the reams of paperwork with a new delivery company will be. a right royal ball ache.
But like I say, the commercial team will be happy with their bonuses (plus probably a cut under the table of whatever the "introducer" gets paid) so sod everyone else.
Firstly, they're not some tinpot brand trying to sportswash their reputation, so that's a plus.
Secondly, this is the kind of deal that works well for the commercial guys, but in truth it's a bit lazy. Basically, they post a solid turnover number (and get big bonuses off it) but the sell to the sponsor is that the net cost to them is lower because they get a load of business off LFC that they weren't going to get otherwise, and this offsets their cost - that's why I say it's a bit lazy. if they were doing it properly they'd get a deal with someone who didn't want a kickback (albeit legitimate).
Win wiin on the face id it, but chances are the retail guys will be pissed off as they'll have to change a lot of things in how their sale process works, including building in, I'd expect, an exclusive UPS delivery option. This may well get the gear to punters a day or so quicker than the existing options, but likely at a cost, which in some cases may be prohibitive for overseas buyers and lead then to buy some blag gear locally instead. Plus, in the post Brexit world, dealing with the reams of paperwork with a new delivery company will be. a right royal ball ache.
But like I say, the commercial team will be happy with their bonuses (plus probably a cut under the table of whatever the "introducer" gets paid) so sod everyone else.
Last edited:
[article]
Liverpool and FSG investment stance explained after Chelsea secure £410m boost
Chelsea have secured $500m worth of investment from US firm Ares Management
Chelsea have secured $500m (£410.5m) worth of investment from US firm Ares Management as Todd Boehly and Clearlake Capital seek ways to fund a stadium build and growth of their football portfolio.
The West London side, acquired by Boehly and Clearlake in May 2022 for $2.5bn, have been on a heavy spending spree in the three transfer windows under the new ownership’s watch, spending more than £1bn on acquiring new players and breaking the British transfer record twice, first with Enzo Fernandez and then with Moises Caicedo, beating Liverpool to the punch with regards to the latter.
The deal, first reported by the Financial Times, is for preferred equity, meaning that Ares would be ahead in the queue of creditors should there be default or bankruptcy. It marks the end of a search for additional investment into Chelsea to allow them to continue to press ahead with their off-field plans, which include the redevelopment of Stamford Bridge and the acquisition of more football clubs around the world. During the summer Chelsea’s holding company paid £65m for a near 100% stake in French side Strasbourg.
The $500m capital injection comes at a time when Liverpool remains open to inward investment. The temptation would be to question why Chelsea can wrap up such a deal of size at speed, and why Liverpool owners Fenway Sports Group have not yet been able to ink an agreement with a minority partner for a stake in the Reds despite a search that is getting on for 12 months.
The two things, however, are very different. Chelsea’s new owners have burned through a lot of money through the acquisition of the club and the subsequent business in the transfer market. As part of the deal to buy Chelsea, Boehly and Clearlake committed to a further $1.5bn investment into infrastructure and stadium development further down the line, with the fresh investment from Ares forming part of that plan.
Ares, who have interests in sport through investments in Atletico Madrid and, indirectly, Olympique Lyonnais through their investment in its holding company Eagle Football Holdings, raised $3.7bn last year for the purposes of investing in teams, leagues and media and entertainment companies.
Chelsea needed to solve a capital problem, FSG with Liverpool are trying to find ways to make the club bigger by adding partners who can bring more that just capital to the table.
Gerry Cardinale, the founder and managing partner of RedBird Capital Partners, owners of AC Milan and 11 per cent stakeholders in FSG, spoke in 2021 about the need for sports teams to think as themselves as "mini Disneys" in order to achieve growth. Vertical markets, where businesses satisfy their needs by controlling a number of services that would have been outsourced, is seen in Disney through its evolution as a company, from making cartoon movies to running theme parks and becoming one of the world's biggest content companies with interests across the media and entertainment business.
FSG want a partner who, as Liverpool CEO Billy Hogan described during the summer, can be “additive” to what the football club is attempting to achieve, which ultimately has a direct impact on what they can do on the pitch in terms of resources.
Hogan, speaking to the ECHO during the Reds’ pre-season tour of Singapore, said: “If it happens, it's going to be based on finding the right partner – the right partner for Liverpool, and Liverpool being the right partner for them. At the appropriate time, if there's something to announce then we'll let you know.
“In any relationship, partnership is part of it. Having the right partners is incredibly important. In the same way we look at our partners from a sponsorship and commercial standpoint, an investment partner needs to be the right partner to be additive to what we are doing.”
Liverpool have a strong balance sheet, one of the healthiest in European football, and plenty of existing partners or investment firms with whom they have a strong relationship if they wanted to simply raise fresh capital. The search for a minority partner continues, as does dialogue with interested parties, but the Reds are fishing from a smaller pool, and one where it has to be the correct organisation to partner with, potentially one that could accrete its stake over time into a majority position in the football club. The likelihood, if a deal does indeed happen, is that a partner will be someone with strong interests in such areas as media, communication, entertainment or data analytics.
Chelsea and Liverpool have very different needs right now. Both clubs are in need of a return to Champions League football for next season for financial reasons, with Liverpool requiring it for further growth on and off the pitch to keep the value of the club rising by leveraging competitive success, while Chelsea will need to find a way to aid their balance sheet after such heavy spend, at a time when they also need to invest heavily into the infrastructure of the club, something that has already been achieved at Liverpool.
Jose E. Feliciano, Clearlake’s co-founder and Chelsea part-owner, told the the IPEM private equity conference in Paris earlier this month: "We have bought an asset that is very coveted by many other potential buyers.
"Ultimately, we are extremely aligned with that supporter and fan base because the best way to make our club more valuable is to win. The team had a tough first season, our first season. We have a tremendous amount of talent.
"I think what we are trying to do is reduce the salary and essentially the [operating expenses] of the business by over $100mn per year."
[/article]
Liverpool and FSG investment stance explained after Chelsea secure £410m boost
Chelsea have secured $500m worth of investment from US firm Ares Management
Chelsea have secured $500m (£410.5m) worth of investment from US firm Ares Management as Todd Boehly and Clearlake Capital seek ways to fund a stadium build and growth of their football portfolio.
The West London side, acquired by Boehly and Clearlake in May 2022 for $2.5bn, have been on a heavy spending spree in the three transfer windows under the new ownership’s watch, spending more than £1bn on acquiring new players and breaking the British transfer record twice, first with Enzo Fernandez and then with Moises Caicedo, beating Liverpool to the punch with regards to the latter.
The deal, first reported by the Financial Times, is for preferred equity, meaning that Ares would be ahead in the queue of creditors should there be default or bankruptcy. It marks the end of a search for additional investment into Chelsea to allow them to continue to press ahead with their off-field plans, which include the redevelopment of Stamford Bridge and the acquisition of more football clubs around the world. During the summer Chelsea’s holding company paid £65m for a near 100% stake in French side Strasbourg.
The $500m capital injection comes at a time when Liverpool remains open to inward investment. The temptation would be to question why Chelsea can wrap up such a deal of size at speed, and why Liverpool owners Fenway Sports Group have not yet been able to ink an agreement with a minority partner for a stake in the Reds despite a search that is getting on for 12 months.
The two things, however, are very different. Chelsea’s new owners have burned through a lot of money through the acquisition of the club and the subsequent business in the transfer market. As part of the deal to buy Chelsea, Boehly and Clearlake committed to a further $1.5bn investment into infrastructure and stadium development further down the line, with the fresh investment from Ares forming part of that plan.
Ares, who have interests in sport through investments in Atletico Madrid and, indirectly, Olympique Lyonnais through their investment in its holding company Eagle Football Holdings, raised $3.7bn last year for the purposes of investing in teams, leagues and media and entertainment companies.
Chelsea needed to solve a capital problem, FSG with Liverpool are trying to find ways to make the club bigger by adding partners who can bring more that just capital to the table.
Gerry Cardinale, the founder and managing partner of RedBird Capital Partners, owners of AC Milan and 11 per cent stakeholders in FSG, spoke in 2021 about the need for sports teams to think as themselves as "mini Disneys" in order to achieve growth. Vertical markets, where businesses satisfy their needs by controlling a number of services that would have been outsourced, is seen in Disney through its evolution as a company, from making cartoon movies to running theme parks and becoming one of the world's biggest content companies with interests across the media and entertainment business.
FSG want a partner who, as Liverpool CEO Billy Hogan described during the summer, can be “additive” to what the football club is attempting to achieve, which ultimately has a direct impact on what they can do on the pitch in terms of resources.
Hogan, speaking to the ECHO during the Reds’ pre-season tour of Singapore, said: “If it happens, it's going to be based on finding the right partner – the right partner for Liverpool, and Liverpool being the right partner for them. At the appropriate time, if there's something to announce then we'll let you know.
“In any relationship, partnership is part of it. Having the right partners is incredibly important. In the same way we look at our partners from a sponsorship and commercial standpoint, an investment partner needs to be the right partner to be additive to what we are doing.”
Liverpool have a strong balance sheet, one of the healthiest in European football, and plenty of existing partners or investment firms with whom they have a strong relationship if they wanted to simply raise fresh capital. The search for a minority partner continues, as does dialogue with interested parties, but the Reds are fishing from a smaller pool, and one where it has to be the correct organisation to partner with, potentially one that could accrete its stake over time into a majority position in the football club. The likelihood, if a deal does indeed happen, is that a partner will be someone with strong interests in such areas as media, communication, entertainment or data analytics.
Chelsea and Liverpool have very different needs right now. Both clubs are in need of a return to Champions League football for next season for financial reasons, with Liverpool requiring it for further growth on and off the pitch to keep the value of the club rising by leveraging competitive success, while Chelsea will need to find a way to aid their balance sheet after such heavy spend, at a time when they also need to invest heavily into the infrastructure of the club, something that has already been achieved at Liverpool.
Jose E. Feliciano, Clearlake’s co-founder and Chelsea part-owner, told the the IPEM private equity conference in Paris earlier this month: "We have bought an asset that is very coveted by many other potential buyers.
"Ultimately, we are extremely aligned with that supporter and fan base because the best way to make our club more valuable is to win. The team had a tough first season, our first season. We have a tremendous amount of talent.
"I think what we are trying to do is reduce the salary and essentially the [operating expenses] of the business by over $100mn per year."
[/article]
Guardian reporting that FSG have sold a small stake in LFC for between $100m and $200m.
Money will NOT go into the transfer kitty.
Shocked, I tell you, shocked.
https://www.theguardian.com/footbal...ake-dynasty-equity-ends-search-for-investment
Money will NOT go into the transfer kitty.
Shocked, I tell you, shocked.
https://www.theguardian.com/footbal...ake-dynasty-equity-ends-search-for-investment
Wouldnt a more healthy financial state for the club also mean that more money will be available for transfers?
That said, I wouldnt release any comment about this and say that now we have a lot of money for transfers. That would be fucking stupid going into future negotiations.
This Is Anfield • Liverpool FC Opinion •
Liverpool FC’s new investment may not be FSG takeover fans wanted – but it could be ideal
David Lynch
It was confirmed today that New York-based firm Dynasty Equity will take only a minority stake in the club, with sources valuing their investment at somewhere between $100 million and $200 million.
This is not the £4 billion full acquisition that many had dreamed of when it was first reported in November of last year that Morgan Stanley and Goldman Sachs had been appointed to seek additional capital.
Yes, the Reds have won it all under their current owners, but at the time the above news emerged they were in the first months of a poor season that it was felt owed much to a lack of investment.
And that stance has since been backed up by a start to this campaign that has seen a long overdue midfield rebuild restore Jurgen Klopp‘s side to their best.
In that context, fans could be forgiven for wondering: what would happen if this manager worked under a chairman who gave him comparable funds to, say, Man City?
And no matter how many years of expertise in sports investment they might bring to the table, Dynasty cannot offer that.
Still, they do ensure a level of continuity that is worth celebrating given that the arrival of new owners represents a step into the unknown.
Chelsea are the most recent proof that change is never guaranteed to be positive, even when it comes with a seemingly unlimited transfer kitty.
And their wayward spending is particularly useful for underlining that, in FSG, Liverpool have a sporting expertise behind the scenes that they should be reluctant to relinquish.
If nothing else, Dynasty have ensured that this platform for success – namely, an enviable record in the transfer market – will stay in place going forward.
However, the biggest upside of their involvement comes in correcting an under-discussed recent strategic misstep from the owners: namely, the use of short-term bank debt to fund capital projects.
The Anfield Road expansion, building of the AXA Training Centre and reacquisition of Melwood have meant that Liverpool’s rolling credit facility has swelled in recent years.
These projects could, of course, have been funded using long-term debt or owner financing, but FSG’s aversion to risk resulted in them taking a different path to that of comparable clubs.
The result was repayment terms and interest demands that created an unnecessary pressure on cashflow at a time when the club were still dealing with the aftermath of the pandemic.
And, while the exact cost of that approach is difficult to calculate, you do not have to be an expert in accounting to suggest it has put the squeeze on transfer business over the past few years.
Fortunately, Dynasty’s arrival alleviates that issue and, though senior figures at Liverpool are keen to play down talk of a ‘war chest’, the benefits of freeing up the club’s growing commercial, matchday and broadcasting revenues seem obvious.
Unless any unforeseen external drains on cash emerge, the Reds’ ability to spend in forthcoming windows will surely be enhanced by the absence of such debt
And so, while it might not be the new ownership that many fans wanted, today’s news might just represent the ideal end to Liverpool’s long-running search for investment.
Liverpool FC’s new investment may not be FSG takeover fans wanted – but it could be ideal
David Lynch
- September 28, 2023
It was confirmed today that New York-based firm Dynasty Equity will take only a minority stake in the club, with sources valuing their investment at somewhere between $100 million and $200 million.
This is not the £4 billion full acquisition that many had dreamed of when it was first reported in November of last year that Morgan Stanley and Goldman Sachs had been appointed to seek additional capital.
Yes, the Reds have won it all under their current owners, but at the time the above news emerged they were in the first months of a poor season that it was felt owed much to a lack of investment.
And that stance has since been backed up by a start to this campaign that has seen a long overdue midfield rebuild restore Jurgen Klopp‘s side to their best.
In that context, fans could be forgiven for wondering: what would happen if this manager worked under a chairman who gave him comparable funds to, say, Man City?
And no matter how many years of expertise in sports investment they might bring to the table, Dynasty cannot offer that.
Still, they do ensure a level of continuity that is worth celebrating given that the arrival of new owners represents a step into the unknown.
Chelsea are the most recent proof that change is never guaranteed to be positive, even when it comes with a seemingly unlimited transfer kitty.
And their wayward spending is particularly useful for underlining that, in FSG, Liverpool have a sporting expertise behind the scenes that they should be reluctant to relinquish.
If nothing else, Dynasty have ensured that this platform for success – namely, an enviable record in the transfer market – will stay in place going forward.
However, the biggest upside of their involvement comes in correcting an under-discussed recent strategic misstep from the owners: namely, the use of short-term bank debt to fund capital projects.
The Anfield Road expansion, building of the AXA Training Centre and reacquisition of Melwood have meant that Liverpool’s rolling credit facility has swelled in recent years.
These projects could, of course, have been funded using long-term debt or owner financing, but FSG’s aversion to risk resulted in them taking a different path to that of comparable clubs.
The result was repayment terms and interest demands that created an unnecessary pressure on cashflow at a time when the club were still dealing with the aftermath of the pandemic.
And, while the exact cost of that approach is difficult to calculate, you do not have to be an expert in accounting to suggest it has put the squeeze on transfer business over the past few years.
Fortunately, Dynasty’s arrival alleviates that issue and, though senior figures at Liverpool are keen to play down talk of a ‘war chest’, the benefits of freeing up the club’s growing commercial, matchday and broadcasting revenues seem obvious.
Unless any unforeseen external drains on cash emerge, the Reds’ ability to spend in forthcoming windows will surely be enhanced by the absence of such debt
And so, while it might not be the new ownership that many fans wanted, today’s news might just represent the ideal end to Liverpool’s long-running search for investment.
It perhaps explains why they thought they could do the Caicedo deal.
And yes, if we pay down the debt, then in theory we could ramp it up again if we needed to. So I think the point they're making is that we don't have a $200m kitty for January, but I believe we will have more flexibility to spend if we need / want to.
Yeah, it was kind of how I read it as well. We wont be going on a spending spree regardless though.
The amount makes me laugh. So as it stands, FSG's remaining debt is paid off and plus maybe Anfield Road. So Dynasty Equity are looking at 2.5-5% share in the club
[article]
Liverpool: FSG agree to sell minority stake in club worth £82-164m to Dynasty Equity
By Mandeep SangheraBBC Sport
Last updated on6 minutes ago6 minutes ago.From the sectionLiverpool
Liverpool principal owner John Henry (second left) with manager Jurgen Klopp
Liverpool owners Fenway Sports Group (FSG) have agreed to sell a minority stake in the club worth between £82m and £164m to global sports investment firm Dynasty Equity.
The deal ends the search for new investment by FSG, who wanted to retain majority ownership of the Reds.
The new investment will primarily be used to pay off the club's bank debt.
"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."
[/article]
[article]
Liverpool: FSG agree to sell minority stake in club worth £82-164m to Dynasty Equity
By Mandeep SangheraBBC Sport
Last updated on6 minutes ago6 minutes ago.From the sectionLiverpool
Liverpool principal owner John Henry (second left) with manager Jurgen Klopp
Liverpool owners Fenway Sports Group (FSG) have agreed to sell a minority stake in the club worth between £82m and £164m to global sports investment firm Dynasty Equity.
The deal ends the search for new investment by FSG, who wanted to retain majority ownership of the Reds.
The new investment will primarily be used to pay off the club's bank debt.
"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."
[/article]
[article]
Who are Dynasty Equity? FSG sell stake in Liverpool to New York investors
Liverpool owners Fenway Sports Group sell stake in the club to New York investors Dynasty Equity
SPORT
By
Liverpool Echo
Don Cornwell, co-founder and chief executive officer of Dynasty Equity, speaks during a panel session on day two of the Qatar Economic Forum (QEF) in Doha, Qatar, on Wednesday, May 24, 2023 (Image: Christopher Pike/Bloomberg via Getty Images)
Liverpool owners Fenway Sports Group finally saw their search for minority investment reach a conclusion on Thursday.
The sale of a stake in the club to New York-based fund Dynasty Equity for a sum understood to be between $100m and $200m, with the funds used to pay off bank debt and not earmarked for transfer business, also came with FSG reaffirming their long-term commitment to the Reds, ending talk of a potential sale of the club.
Dynasty Equity’s stake in the Reds is their first move into football, and one that won’t bring with it any operational control. The company could expand what it does with FSG and Liverpool in the future, but for the foreseeable the capital they have provided has been used to service a debt that FSG didn’t want sitting on its balance sheet.
But who are Dynasty Equity?
Sports investment industry veterans Jonathan M. Nelson and K. Don Cornwell co-founded Dynasty Equity last year. Nelson, with over 35 years of private equity experience, founded Providence Equity Partners, with the firm playing a significant role in investing in the Yankees Entertainment and Sports Network (YES) in the partnership with the MLS to create MLS Media.
Cornwell, a founding partner of PJT Partners, is a former Morgan Stanley executive, with the investment bank, along with Goldman Sachs, aiding FSG with the transaction. Prior to leaving Morgan Stanley, Cornwell served as Head of Global Sports Investment Banking and has experience in working on some of the largest and most complex sports and entertainment deals in the industry, including the sale of the Buffalo Bills NFL team, the sale of IMG to William Morris Endeavor, the sale of Access/DAZN owned Perform Group to Vista owned STATS Inc., a recapitalization of the Pittsburgh Steelers, and the formation of Major League Baseball Advanced Media. He has also served as a strategic advisor to both the NFL and NBA on numerous occasions.
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.
A sports-focused investment firm, Dynasty describe their investment approach through four pillars; ingrained integrity, thoughtful approach, diverse perspectives and entrepreneurial teamwork.
The company’s strategy is outlined on their website, stating: “We build enduring partnerships by maintaining integrity, trust, and respect throughout all aspects of our process and interactions.
“We are thoughtful investors who emphasise underwriting discipline, intellectual curiosity, rigorous analytics, and sound judgement.
“We bring a diverse set of experiences and backgrounds to sports investing, enabling us to evaluate opportunities and situations from a variety of perspectives.
“We believe optimal outcomes are achieved when embracing an entrepreneurial spirit and a team-oriented, collaborative approach.”
The Liverpool and FSG deal is one of Dynasty’s biggest to date. Earlier this year Cornwell became an investor in TMRW Golf, the league competition set up by professionals Rory McIlroy and Tiger Woods. FSG have also invested in TMRW, acquiring the franchise for Boston.
[/article]
Who are Dynasty Equity? FSG sell stake in Liverpool to New York investors
Liverpool owners Fenway Sports Group sell stake in the club to New York investors Dynasty Equity
SPORT
By
Liverpool Echo
- 14:29, 28 SEP 2023
- UPDATED14:32, 28 SEP 2023
Don Cornwell, co-founder and chief executive officer of Dynasty Equity, speaks during a panel session on day two of the Qatar Economic Forum (QEF) in Doha, Qatar, on Wednesday, May 24, 2023 (Image: Christopher Pike/Bloomberg via Getty Images)
Liverpool owners Fenway Sports Group finally saw their search for minority investment reach a conclusion on Thursday.
The sale of a stake in the club to New York-based fund Dynasty Equity for a sum understood to be between $100m and $200m, with the funds used to pay off bank debt and not earmarked for transfer business, also came with FSG reaffirming their long-term commitment to the Reds, ending talk of a potential sale of the club.
Dynasty Equity’s stake in the Reds is their first move into football, and one that won’t bring with it any operational control. The company could expand what it does with FSG and Liverpool in the future, but for the foreseeable the capital they have provided has been used to service a debt that FSG didn’t want sitting on its balance sheet.
But who are Dynasty Equity?
Sports investment industry veterans Jonathan M. Nelson and K. Don Cornwell co-founded Dynasty Equity last year. Nelson, with over 35 years of private equity experience, founded Providence Equity Partners, with the firm playing a significant role in investing in the Yankees Entertainment and Sports Network (YES) in the partnership with the MLS to create MLS Media.
Cornwell, a founding partner of PJT Partners, is a former Morgan Stanley executive, with the investment bank, along with Goldman Sachs, aiding FSG with the transaction. Prior to leaving Morgan Stanley, Cornwell served as Head of Global Sports Investment Banking and has experience in working on some of the largest and most complex sports and entertainment deals in the industry, including the sale of the Buffalo Bills NFL team, the sale of IMG to William Morris Endeavor, the sale of Access/DAZN owned Perform Group to Vista owned STATS Inc., a recapitalization of the Pittsburgh Steelers, and the formation of Major League Baseball Advanced Media. He has also served as a strategic advisor to both the NFL and NBA on numerous occasions.
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.
A sports-focused investment firm, Dynasty describe their investment approach through four pillars; ingrained integrity, thoughtful approach, diverse perspectives and entrepreneurial teamwork.
The company’s strategy is outlined on their website, stating: “We build enduring partnerships by maintaining integrity, trust, and respect throughout all aspects of our process and interactions.
“We are thoughtful investors who emphasise underwriting discipline, intellectual curiosity, rigorous analytics, and sound judgement.
“We bring a diverse set of experiences and backgrounds to sports investing, enabling us to evaluate opportunities and situations from a variety of perspectives.
“We believe optimal outcomes are achieved when embracing an entrepreneurial spirit and a team-oriented, collaborative approach.”
The Liverpool and FSG deal is one of Dynasty’s biggest to date. Earlier this year Cornwell became an investor in TMRW Golf, the league competition set up by professionals Rory McIlroy and Tiger Woods. FSG have also invested in TMRW, acquiring the franchise for Boston.
[/article]
[article]
Former Liverpool striker Sadio Mane has completed his purchase of French Fourth Division Bourges Foot 18.
Bourges Foot 18 play in France's National 2.
"I confirm the official arrival of Sadio Mané as partner of Bourges Foot 18. I would like to send him my warmest regards. Mané has great values, he is close to us and he wants to start a social project," said the mayor of the city, explaining that the first contact took place in October 2020 (the first official letter of intent dates back to 15 August 2023).
The mayor of Bourges took the opportunity to give the floor to Al-Nassr striker Mane, who was present via video.
“It is a great pleasure to support the project of my friend Cheikh Sylla. We will work together to develop and structure the club and bring it to the professional ranks. The challenge will be enormous, but we will make it. The mayor and the president convinced me of the desire to achieve the immediate objectives."
[/article]
Anyone remember when we were trying to sign Willian, it was taking ages and then suddenly Chelsea swooped from out of nowhere and got the deal done in a matter of hours, and this was a sign of how inept we were and how they knew what they were doing?
Well, they are now being investigated over that deal, and also E’too, by the Premier League. A Chelsea statement on Monday said: "These allegations pre-date the club's current ownership. They concern entities that were allegedly controlled by the club's former owner and do not relate to any individual who is presently at the club.”
So it looks like either the Russian owned Anzhi Machcachala, or there was some sort of third party ownership scheme going on. The former would probably be OK, the latter not so much, which I assume is what is suspected. They will, of course, get away with it, sins of the father and all that, but the findings should give the general public some idea of how massively corrupt the transfer system is.
Well, they are now being investigated over that deal, and also E’too, by the Premier League. A Chelsea statement on Monday said: "These allegations pre-date the club's current ownership. They concern entities that were allegedly controlled by the club's former owner and do not relate to any individual who is presently at the club.”
So it looks like either the Russian owned Anzhi Machcachala, or there was some sort of third party ownership scheme going on. The former would probably be OK, the latter not so much, which I assume is what is suspected. They will, of course, get away with it, sins of the father and all that, but the findings should give the general public some idea of how massively corrupt the transfer system is.
Looks like there'll be some more info about this over the next couple of days - this from the Guardian's reporting on leaks of info from Cypriot law firms / accountants:
Undisclosed agreements that allowed Abramovich and the super-agent Pinhas Zahavi to control the careers of 21 young footballers under controversial third-party ownership arrangements, which have been compared to bonded labour.
The Guardian has published an additional article overnight, it's quite long and padded out but the gist is that the Russian has made a load of payments to agents and other parties through other companies he owned, this reducing the losses Chelsea reported for FFP. This is similar to what City allegedly did with their wage bill. Although the article doesn't say so, it's probable these payments won't have been declared to HMRC (UK tax authorities) either, so there may have been tax evasion as well, and Chelsea will be in a tight spot if HMRC can establish that people at the club knew about it. Given that Boehly has reported this since buying the club, I imagine people must have known, otherwise he wouldn't have found out. I assume there will be a further article on third party ownership in a day or two.
Correct. The article says it's probably time barred for UEFA but speculated that the PL may take a different view. They are already investigating.
Thing is.. Everton will probably accept the points deduction this season. There are 3 teams even worse than them. They'll be 6-7 points from safety as of right now.
NOTHING TO SEE HERE
Manchester City: Treble winners post Premier League and club record revenues and profits
By Simon StoneBBC Sport
Last updated on7 minutes ago7 minutes ago.From the sectionMan City
Manchester City beat Inter Milan in Istanbul five months ago to end their long quest to win the Champions League
Manchester City have posted a Premier League record revenue of £712.8m for the 2022-23 financial year.
This exceeds the record £648.4m posted last month by Manchester United and is a £99.8m rise on the previous year.
City's profit of £80.4m is up from last year's club record of £41.7m.
The figures come on the back of a season in which they became the second English club after Manchester United in 1999 to win the Treble of Premier League, FA Cup and Champions League.
The revenue is less than the €990m (£861.43m) Barcelona recorded in 2019, although the validity of this has been challenged due to the 'exceptional' sums that were added to the overall revenue figure.
"In the aftermath of the Champions League win in Turkey and the completion of 'The Treble' the question I was asked most often, was 'How do you top that?'," said City chairman Khaldoon al-Mubarak.
"The answer is by doubling down on the proven philosophies and practices that have brought us this success and to challenge ourselves to continue to constantly innovate in order to achieve new levels of performance, on and off the field.
"We will continue to question all the industry norms, evaluate our successes and learn from any failures.
"Success today simply means further investment for tomorrow. Our financial health and on-field success mean everyone connected to Manchester City can look forward to the future with excitement.
"Our collective achievements give me huge confidence that together we can accomplish even more in the years to come."
The club's financial statement reveals increases in all major revenue streams. Broadcast revenues increased 20.2% to £299.4m. City say this was "primarily" due to their success in the Champions League and FA Cup.
The report also refers to "a number of risks and uncertainties which could have a material impact on the club's performance" including performance of the first team, regulatory changes and the 115 financial charges issued against them by the Premier League in February.
City were charged with alleged breaches of the league's financial rules from 2009 to 2018. They were also accused of not cooperating since the investigation began in December 2018.
The independent commission which is overseeing the case can impose punishments ranging from a fine and points deduction to expulsion from the Premier League.
The club has always denied financial wrongdoing.
"In February 2023, in response to the charges, the Club issued a public statement that it welcomes the review of this matter by an independent Commission, to impartially consider the comprehensive body of irrefutable evidence that exists in support of its position," the report says.
City's wage bill rose by almost £70m to £422.89m and the club is committed to in excess of £262m in "transfer fees, signing on fees and loyalty bonuses" if set conditions are met.
The club made £121.7m profit on player trading in the financial year of 2022-23 and says total transfers conducted after 30 June 2023, which included the arrivals of Jeremy Doku, Mateo Kovacic, Josko Gvardiol and Matheus Nunes, plus the departures of Cole Palmer, Riyad Mahrez, Aymeric Laporte and James Trafford cost the club approximately £84m.
Manchester City: Treble winners post Premier League and club record revenues and profits
By Simon StoneBBC Sport
Last updated on7 minutes ago7 minutes ago.From the sectionMan City
Manchester City beat Inter Milan in Istanbul five months ago to end their long quest to win the Champions League
Manchester City have posted a Premier League record revenue of £712.8m for the 2022-23 financial year.
This exceeds the record £648.4m posted last month by Manchester United and is a £99.8m rise on the previous year.
City's profit of £80.4m is up from last year's club record of £41.7m.
The figures come on the back of a season in which they became the second English club after Manchester United in 1999 to win the Treble of Premier League, FA Cup and Champions League.
The revenue is less than the €990m (£861.43m) Barcelona recorded in 2019, although the validity of this has been challenged due to the 'exceptional' sums that were added to the overall revenue figure.
"In the aftermath of the Champions League win in Turkey and the completion of 'The Treble' the question I was asked most often, was 'How do you top that?'," said City chairman Khaldoon al-Mubarak.
"The answer is by doubling down on the proven philosophies and practices that have brought us this success and to challenge ourselves to continue to constantly innovate in order to achieve new levels of performance, on and off the field.
"We will continue to question all the industry norms, evaluate our successes and learn from any failures.
"Success today simply means further investment for tomorrow. Our financial health and on-field success mean everyone connected to Manchester City can look forward to the future with excitement.
"Our collective achievements give me huge confidence that together we can accomplish even more in the years to come."
The club's financial statement reveals increases in all major revenue streams. Broadcast revenues increased 20.2% to £299.4m. City say this was "primarily" due to their success in the Champions League and FA Cup.
The report also refers to "a number of risks and uncertainties which could have a material impact on the club's performance" including performance of the first team, regulatory changes and the 115 financial charges issued against them by the Premier League in February.
City were charged with alleged breaches of the league's financial rules from 2009 to 2018. They were also accused of not cooperating since the investigation began in December 2018.
The independent commission which is overseeing the case can impose punishments ranging from a fine and points deduction to expulsion from the Premier League.
The club has always denied financial wrongdoing.
"In February 2023, in response to the charges, the Club issued a public statement that it welcomes the review of this matter by an independent Commission, to impartially consider the comprehensive body of irrefutable evidence that exists in support of its position," the report says.
City's wage bill rose by almost £70m to £422.89m and the club is committed to in excess of £262m in "transfer fees, signing on fees and loyalty bonuses" if set conditions are met.
The club made £121.7m profit on player trading in the financial year of 2022-23 and says total transfers conducted after 30 June 2023, which included the arrivals of Jeremy Doku, Mateo Kovacic, Josko Gvardiol and Matheus Nunes, plus the departures of Cole Palmer, Riyad Mahrez, Aymeric Laporte and James Trafford cost the club approximately £84m.
When do you think we might get an update regarding the case? Are we talking years?
Similar threads
