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Fenway Sports Sells Liverpool Minority Stake to Dynasty Equity

Brendan Coffey
·2 min read

Recently launched sports team investment fund Dynasty Equity Partners has bought a minority stake in Liverpool F.C. from Fenway Sports Group, the companies announced Thursday.

While the size of the deal hasn’t been disclosed, the value of the stake is believed to be between $100 and $200 million. Fenway Sports Group said in a press release the proceeds will mainly be used to pay down bank debt incurred during the pandemic, which saw teams lose their gate receipts from having no fans for part of the 2019-2020 season and nearly all of the following season. The transaction also goes to help pay off capital expenses to enhance Anfield Stadium, build the squad’s AXA Training Center, repurchase Melwood training ground and make acquisitions during this past summer’s transfer window, according to FSG.

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“Our long-term commitment to Liverpool remains as strong as ever,” FSG President Mike Gordon said in the release. “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.”

Last autumn, FSG began exploring a sale of some or all of the Premier League club, about the same time Dynasty Equity was formed by Jonathan Nelson and Don Cornwell. This is the first investment by the fund, which seeks to purchase limited partner stakes in sports franchises. Nelson is a long-time private equity executive who helped create the YES Network, the regional sports network for the New York Yankees, and has worked on deals with FSG ownership group over the years. Cornwell is well-known in sports circles from a long career at Morgan Stanley, where he crafted deals in the sports, media and entertainment sectors.

The investment is directly into Liverpool, not into parent FSG. Sportico tallies Liverpool FC as one of the Premier League’s most valuable clubs at $4.71 billion. This deal is believed to have been done at a valuation upward of $5 billion, according to an industry source.

“Liverpool is one of the most iconic football clubs in the world with a passionate fanbase and significant global reach,” said Cornwell, in the release. “Dynasty is privileged to support the Club and work alongside FSG to execute on the tremendous growth opportunities ahead.”

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