The sale price of Liverpool and the potential buyers of the club have been revealed days after Fen Sports Group (FSG) put up the club for sale.
After a US-based buyer reportedly approached Fenway Sports Group, the Liverpool owners hired Goldman Sachs and Morgan Stanley to help them sell the club.
Secret talks have been reportedly going on between the two parties as the FSG braces up to relinquish their ownership of the club after 12 years on the helm of affairs.
The US-based buyer is reportedly keen on taking over the full ownership of the club from the hands of John Henry not just holding a share of the club.
After investment bankers Goldman Sachs and Morgan Stanley were contracted by John Henry to facilitate the sale, an array of interests from bidders have been recorded.
Liverpool’s Sale Price
According to some reports, Liverpool’s price tag might be as high as £4bn ($4.7bn), given that Roman Abramovich sold Chelsea for £2.5bn ($3bn), and Liverpool is seen as a top and bigger brand than Chelsea.
According to Daily Mail, sources close to the negotiation team have confirmed FSG would be ready to sell for £2.7bn ($3bn), a few million pounds above Chelsea’s sale price.
The £2.7b price tag is still a win for John Henry and his team at the Fenway Sports Group, even when inflation and investments into the club is considered.
John Henry bought Liverpool at £300m in 2010. Selling it at £2.7billion is a massive gain, although the price tag is still considered an undervaluation of the club on Forbe’s metrics.
Forbes estimated the worth of Liverpool to the tune of over £4billion, but John Henry is said to have arrived at his controversial £2.7billion piece tag based on his sale of the price of Chelsea, which was six times its annual revenue generation.
Meanwhile, the projected Liverpool’s 2021-22 revenue (not revealed yet) is expected to hit £600m ($700m) for last season.
When multiplied in five places, the result will be $500million above the set price of tag of $3billion.
FSG have settled for the $3billion price tag due to issues of uncertainties and fluctuations. However, more bids can see the price tag shoot up in the sales process.
John Henry’s sales conditions
It has been reported that Liverpool’s sales process gathered momentum last week, with FSG confirming interests ‘from third parties to become shareholders in Liverpool.’
With multiple interests flooding into the club, FSG have maintained sales can only be conducted ‘under the right terms and conditions, and new shareholders can only be considered if they align with the interests of the club.
Despite the emphasis on Liverpool’s interest as a prime condition for sale, it is believed that Fenway’s statement is just a ploy to sieve out some bids to few to spark a bidding war and shoot up the price.
Potential buyers
Liverpool’s potential buyers are still a mystery as the sales process is in the nascent stage.
However, the owner of the LA Clippers, Steve Ballmer, and the owner of the Boston Celtics, Steve Pagliuca, are reportedly interested in taking over the club’s ownership from John Henry.
Also, reports from the Middle East indicate that Dubai International Capital ‘could be eying’ a deal to purchase the Premier League club after a failed £312m bid in 2007.