Analysis: How Liverpool will spend £164m investment raised by selling minority stake

Liverpool owners Fenway Sports Group (FSG) have announced the sale of a minority stake to a sports investment firm that will inject a significant amount of money into the club, although it won’t be spent on new players in upcoming transfer windows.

Dynasty Equity have completed what Liverpool are describing as a “strategic common equity minority investment” in the club. It will bring additional money into the club, while FSG have stressed that their commitment to the Reds remains “as strong as ever”.

The club’s owners have been open to outside investment since confirming so last year, when it was also reported that that presentation had been prepared for parties interested in a full sale.

Liverpool’s finances have come under scrutiny in recent times. The Reds posted combined pre-tax losses of just over £50m in their accounts for 2019/20 and 2020/21, highlighting the hugely detrimental impact of the Covid-19 pandemic.

Their most recently published accounts for the 2021/22 season saw revenue soar by £107m on the previous year to a club record £594m. Liverpool returned to profitability, however, wages also grew by almost 17% and total administrative costs were up £69m to £545m.

Reports suggest the investment from Dynasty Equity is worth between £82m and £164m. Liverpool have not disclosed the amount, but have confirmed what it will be used for.

“The minority investment will primarily be used to pay down bank debt incurred during the COVID-19 pandemic and capital expenses made to enhance Anfield, build the AXA Training Centre, repurchase Melwood training ground and, most recently, acquisitions during the summer transfer window,” a statement from the club on Thursday afternoon read.

Liverpool are also open to exploring “further growth opportunities” with Dynasty Equity.

What we know

  • Liverpool sell minority stake to Dynasty Equity
  • Investment thought to be worth up to £164m
  • Reds confirm what the money will be spent on.
John W. Henry founded FSG and Liverpool principal owner.

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