Former FSG executive Theo Epstein’s new role in the MLB could help Liverpool attract more investment
According to the Liverpool Echo, former FSG employee Theo Epstein, who is the new executive-in-residence for the MLB, could hold the key to Liverpool being able to attract new investment.
He will be responsible for advising owners of the teams Arctos invests in, across multiple leagues, on matters such as organisational leadership, culture-building and other business areas. Epstein’s new position could help Liverpool in their search for new investors especially after a proposed merger with RedBall Acquisition Corp fell through.
The deal with RedBall that may have seen FSG turn from a private into a public company. This organization led by Billy Beane did not gather the additional funding it needed, having fallen three quarters away from their target. (h/t The Athletic)
The right deal at the wrong time?
Even if they had raised the money, it would appear that such a merger was dead on arrival thanks to Major League Baseball’s reluctance to make a disclosure. The means the league was concerned about the amount of financial information a publicly-listed company would have to share in the open. Given the current financial situation, such a disclosure would have done them little good.
FSG appear to be committed to a long-term project at Liverpool and believe they are yet to realise the full potential of the English giants. Peter Moore admitted back in 2019 that FSG is willing to sell a minority stake to the right investor and little appears to have changed regarding the intention to do so.
A sleeping giant awakened!
Having taken control of Liverpool for a knockdown price in 2010, FSG have converted the team into a financial powerhouse. The Reds moved up two places in the 2019/20 Deloitte Money League table, overtaking Paris Saint-Germain and Chelsea. It was the first time the club has appeared in the top five since 2001/02.
The club’s income was, however, down by eight per cent down compared to the year before. To put it into context, it is lesser when compared to the top 20’s revenue dip of 12 per cent. This would indicate that the club is not suffering financially as much as some of its competitors. (h/t The Athletic)
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FSG are not without their faults. However, they have shown themselves to be shrewd investors who have not just woken up a sleeping giant but also turned them into winners on the pitch. Investment has been made in personnel and infrastructure and the club is in a much better position than it was when they took over.
Liverpool do, however, lag behind a number of teams in certain revenue streams and it will need to be addressed going forward.
