There is a real possibility that Fenway Sports Group will not get the sort of money they’re hoping for regarding the sale of Liverpool FC, according to US-based football investor Jordan Gardner.
That’s what’s reported in The Athletic. With the Merseyside club up for sale, there are varying opinions about how much the Anfield outfit can fetch on the investment market.
This is especially the case with the Glazer family putting Manchester United up for sale; meaning the two biggest clubs in England will be fighting for the same prospective owners.
“In terms of valuation, I have a hard time seeing anything above £4billion for Manchester United and maybe £3-3.5billion for Liverpool using any sophisticated valuation methodology and revenue multiples,” Gardner said.
“Most people don’t realise that the pool of buyers at these price points is incredibly small, and while it is possible a bidding war could raise the ultimate sale price for both clubs, I don’t anticipate that happening here.
“There’s a real possibility one or both owners do not get the asking price they want and end up deciding not to sell.”
Liverpool may not even sell
According to various analysts in The Athletic’s report, Man United are deemed the better investment opportunity out of the two clubs.
They argue this is due to a larger global brand, which could see long-term asset appreciation and opportunities to see commercial growth in the coming years.
On the pitch, Liverpool have enjoyed huge success in recent years. However, the Merseyside outfit are now in disarray, like the Red Devils have been for a long while.
Whether this puts prospective buyers off, this awaits to be seen. Saying this, with the £3billion price-tag going around, the Reds should sell at this valuation.
A US-based consortium led by business tycoon Todd Boehly agreed to buy Chelsea for a staggering £4.25billion earlier in the summer. It can certainly be argued that Liverpool are a much bigger club than the Blues, and with everything considered, there should be no reason they should be selling for a far higher margin than the Reds.
However, as Gardner claims, with such a small pool of potential investors, FSG could struggle in the current market. If these suitors deem United as a better option, there aren’t too many alternative consortiums who can buy the club.
Therefore, Liverpool could be left without investment. Instead, John W. Henry and co could be overseeing operations on Merseyside for a while longer.
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