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Another 'Up for Sale' Story

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gkmacca

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From the New York Post, so probably a complete fabrication, but anyway...


John Henry, the billionaire owner of the Boston Red Sox, has quietly signaled he’s willing to sell his other trophy sports franchise, the UK-based soccer team Liverpool FC, The Post has learned.

Henry — who on Oct. 28 was busy popping champagne as the Red Sox beat the Los Angeles Dodgers to win the World Series — is running a “passive sales process” for Liverpool, according to a source close to the situation.

That means Henry is privately entertaining offers in an informal process that’s outside of an official auction — and is looking for a price well north of $2 billion, the source added.

“It’s for sale if he can get the right price,” the source close to the situation said.

Two other sources also said Liverpool is essentially for sale.

Reps for Henry, who bought Liverpool for $477 million in 2010, didn’t respond to calls for comment.

Despite the World Series victory, the Red Sox lost money this season, according to sources with direct knowledge of the team’s finances.

The Red Sox in 2018 had the highest payroll in baseball — about $238 million, sources told The Post on Thursday. The stratospheric payroll in turn triggered a “luxury tax” worth about $20 million that has helped exacerbate the team’s losses, sources said.

It couldn’t immediately be learned whether there was a direct connection between selling Liverpool and funding Red Sox losses.

Red Sox President of Baseball Operations Dave Dombrowski told The Post earlier Thursday, “We will never complain about finances. We have generous owners.”

Liverpool was recently given a $1.9 billion valuation by Forbes. In August, however, the Daily Mail reported that Sheik Khaled Bin Zayed Al Nahayan, whose family governs Abu Dhabi, made an unsuccessful approach to buy Liverpool in late 2017 and into early 2018 with a Chinese partner.

That bid, which a source said fell apart because the Chinese bidders couldn’t cobble together sufficient financing, was said to be worth $2.6 billion, according to the report.

Reps for Fenway Sports Group — Henry’s holding company, which owns the Red Sox and Liverpool FC, as well as 80 percent of the New England Sports Network and 50 percent of Roush Fenway Racing — denied in August that Liverpool was for sale.

But that’s clearly not the case now, said sources briefed on the situation.

“This is not fake news” that Henry is willing to sell Liverpool, a London sports investment banker following the situation said, although he added that he doubts a sale will happen soon.

Fenway Sports Group did not return calls.
 
yeah I think that's the case.

I don't think there's likely to be a need to sell.
 
I suppose everything is for sale "at the right price"


price.jpg
 
Of course he’d sell at the right price. That’s what his business is based on.
But who the hell would be willing to spend over 2 billion quid for LFC? They simply wouldn’t make the money back in their lifetime.
 
Liverpool's owners Fenway Sports Group have categorically ruled out selling the Anfield outfit.

Reports in their native US claimed principal owner John W Henry has begun a “quiet process” to cash in on Liverpool eight years after buying them for £300million.

But Liverpool have dismissed the speculation and insist the club is not for sale.

A Liverpool spokesperson said: “As loathed [sic] as we are to give a story of this nature a meaningful response, on behalf of the club’s ownership, I can completely dismiss this unfounded speculation.

“To repeat, once again, this club is not for sale, including any ‘quiet process’ or anything of that nature.”

The initial report that the Reds were on the market came from Henry's homeland of America, with the New York Post claiming the Boston Red Sox owner was "quietly" looking for around $2billion.
 
They divested themselves of a number of other holdings to buy LFC in the first place and they've just majorly backed Klopp in the market. Of course they're in this to earn big, but it seems pretty clear to me that they see the club as a major - perhaps the major - route for them to take to get there.
 
Of course he’d sell at the right price. That’s what his business is based on.
But who the hell would be willing to spend over 2 billion quid for LFC? They simply wouldn’t make the money back in their lifetime.

NESV, as they were called back then, bought us for £300m. Now we are valued at £2b only 8 years later. Any investment with the ability to appreciate in value that quickly will always interest investors.

Ive always felt that Henry will wait until clubs can sign individual TV deals, which would massively increase our revenue, and then cash in his chips.
 
NESV, as they were called back then, bought us for £300m. Now we are valued at £2b only 8 years later. Any investment with the ability to appreciate in value that quickly will always interest investors.

Ive always felt that Henry will wait until clubs can sign individual TV deals, which would massively increase our revenue, and then cash in his chips.
Yep.

That plus the equally inevitable independent streaming rights for 3pm games.
 
They bought low, though, I'm guessing most of the significant appreciation has already happened. That's about a 7x multiplier, no way does any future investor get that kind of return.

in fact, I wonder if by so successfully driving up our market value they have priced themselves out of an exit. I mean what business savvy person buys an asset at its peak value?
 
We have won a single cup in their time in charge - so our value has gone up but it feels a bit hollow.
 
NESV, as they were called back then, bought us for £300m. Now we are valued at £2b only 8 years later. Any investment with the ability to appreciate in value that quickly will always interest investors.

Ive always felt that Henry will wait until clubs can sign individual TV deals, which would massively increase our revenue, and then cash in his chips.
They got us at a point when we were facing bankruptcy. They got a massive, massive bargain.
Can’t compare them to now.
Whoever purchases Liverpool for over 2 billion will have a very hard time making it back.
 
We are one of the most globally recognised clubs in world sports. The idea that our value has peaked after a decade of winning nothing doesnt make sense. TV deals will get bigger, streaming services will bring in more revenue, stadium can be further expanded/redeveloped to make match days more profitable.
 
It’s not like any other business. The percentage of revenue vs investment is ridiculous when it comes to football. Although the revenue continues to increase, that doesn’t mean profit increase, obviously, but especially so in football.
You talk of expanding the stand. Fine, another 200 odd million in that on top of the 2 billion+. How long would it take to get it back?
I imagine the only way would be to make LFC publicly traded. Hope it never happens for obvious reasons.
 
We are one of the most globally recognised clubs in world sports. The idea that our value has peaked after a decade of winning nothing doesnt make sense. TV deals will get bigger, streaming services will bring in more revenue, stadium can be further expanded/redeveloped to make match days more profitable.
True, but those are rising tides for all PL clubs. If we go on a sustained run of league titles and deep CL runs it might push us out ahead but that's hardly realistic is it?
 
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