Report: US investors view Liverpool like an American sports team

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US investors view Liverpool as akin to an American sports team, according to reports. The Reds are currently on the market.

This comes from the Liverpool Echo. They cite sources in the US as they cover interest in Liverpool right now.

FSG, of course, have the club up for sale. They’re after investment in the Reds, either as a full sale or a minority share. Given the enormous valuation of the club, there’s a limited group of potential buyers.

It will likely be investment from US firms, then. Private Equity Firms are increasingly investing in sport and it feels like that’s where FSG will find their offers.

And interest in a club like Liverpool is there. The Echo claim that US investors view Liverpool like they would an American sports team – and that only increases their value.

So what does that mean, exactly?

US investors like Liverpool

US teams are a much safer and more valuable investment than traditional football clubs. It seems strange, given no American league is anywhere near the size and reach of the Premier League, let alone the Champions League.

But there’s one good reason for it – guaranteed success. You essentially cannot fail if you own an NBA team or an NFL team. As long as that league grows, the team’s valuation grows with it. There’s no relegation, after all, and you never need to qualify for another edition.

That’s not the case with football clubs. If you fail to grow your club, you could end up being relegated and missing out on any growth the league has. Any club that relies on being in the Champions League to compete isn’t a safe investment, either, as qualifying for it can be very difficult.

Eliminating this risk was a big factor in the Super League. That plan failed, of course, and with it went an enormous amount of value in the world’s biggest teams.

It seems investors believe Liverpool don’t necessarily need it, though. They’re unlikely to ever be relegated, after all, and should retain their value no matter what. Even with a poor spell, they’ll almost inevitable make it back to the top of the game eventually.

Manchester United’s failures over the last decade show that, too. They’ve retained their value despite failing to compete for the title and consistently falling out of the Champions League. If investors see Liverpool as a similar safe investment, FSG will end up getting what they want from any sale.