Liverpool owners FSG are growing and have ambitious expansion plans.
The Fenway Sports Group, who own the Boston Red Sox and NASCAR team Roush Fenway Racing as well as Liverpool, have approved a £540million private investment deal with RedBird Capital Partners.
The Boston Globe reported this week that LeBron James, who has already held shares in Liverpool since 2011, will become a partner, alongside business partner Maverick Carter.
The company are plotting aggressive growth across sport and beyond with claims they have NFL and NBA franchises on their shopping list, as well as another European soccer club, teams from the NHL, MLS, WNBA and NWSL plus sports betting, eSports and data analytics companies.
But what are some of the ways that Liverpool stand to benefit from the expansion?
Multi-layered development system
It is claimed in the Boston Globe report that FSG are keen to add another European soccer club to their portfolio.
That draws obvious comparisons with the City Football Group, who now have a global network of eight football clubs across the UK, US, Australia, Spain, Japan, Uruguay and most recently China and India.
It also draws parallels with Red Bull’s network, featuring RB Leizpig and Red Bull Salzburg in England as well as other global teams such as the New York Red Bulls and Red Bull Bragantino.
From a Liverpool perspective, the benefits of another club being acquired by FSG are obvious.
Whilst Liverpool have already invested heavily in their own academy talent on Merseyside, the expansion of their network increases the scope to find and hone young talents for profit.
Tyler Adams, for example, was discovered by the Red Bulls Academy in New York as an Under-13s player.
He moved into the New York Red Bulls II side before graduating to the New York Red Bulls first-team and is now a regular at RB Leipzig, the head of the pyramid.
Liverpool’s existing global standing means they would undoubtedly stand at the top of the network, having access to the cream of the crop to come from a multi-layered youth development system.
If FSG acquire another European club, they will likely have access to superior resources to those around them.
Red Bull Salzburg, for instance, have benefitted from a state-of-the-art Red Bull Academy, producing the likes of Erling Haaland, Naby Keita and Sadio Mane in recent years before selling them on for healthy profits.
Many have moved from Red Bull Salzburg to RB Leipzig, but even those not moving within the network benefit the overall project by bringing in funds that can be distributed elsewhere within the ownership model.
The acquisition of additional clubs ultimately creates a global trading platform, showcasing talent at various levels to enhance their market value and allow owners to benefit from smart business moves.
Shared technology
One of the biggest benefits of an expanding portfolio for FSG is the prospect of shared technology across the network.
City Football Group chief operating officer Omar Berrada has labelled technology an “absolutely critical” component of operations.
With an increasingly complex system and a global operation, technology is vital and the overall portfolio makes them an attractive proposition to equip themselves with the very best.
They have signed far-reaching deals with several top technology firms such as Cisco, Acronis and SAP in recent years in order to improve performance on and off the pitch.
For instance, German software specialist SAP signed a sponsorship deal which sees Pep Guardiola and his players and staff regularly use their software to maximise performance.
With a portfolio which already spreads across a number of sports, and plans to reportedly expand into the NBA, NFL and elsewhere, FSG will be well-placed to share access to technology at the very highest level.
From a Liverpool standpoint, this could be a major benefit, particularly given the data-driven recruitment strategy which has served them so well.
In a fast-moving industry, being on top of the latest technology could be vital and with reports adding a data analytics arm to operations is on the agenda, it appears a key part of FSG’s plan.
New markets
Football is an increasingly global game, and the City Football Group have been honest about their aspirations to break into new markets with their project.
“When we set out as City Football Group, the three big markets we always had in mind were the US, China and India, right from the beginning,” Berrada told SportsPro.
“The interest in football is also growing very fast, so if you look at the combination, we think the idiosyncrasies are very interesting, and now being able to have a physical presence there, to be able to help and continue to develop football in those territories, is fascinating.”
Unlike Manchester City, Liverpool are able to boast an existing global profile on a massive scale.
But generating a physical presence in other countries can only be a positive thing when enhancing the commercial value of their operation.
LeBron James’ involvement is expected to help Liverpool’s global marketability - something which became apparent when he stepped out wearing Liverpool’s new Nike shirt after helping them complete a big-money new kit deal.
As FSG’s sporting portfolio diversifies and grows, and they generate departments around the world in different markets, it will only increase Liverpool’s global presence and enable them to develop that both commercially and in terms of their fan engagement.
Entrepreneurial expertise
FSG’s new £540million investment to fund their expansion comes via a deal with Gerry Cardinale's RedBird Capital private equity firm.
The American financier has built up a huge portfolio and would bring a number of qualities to the table in terms of his entrepreneurial expertise at FSG.
Liverpool’s owners, led by John W Henry, have already led the way in terms of backing an innovative approach to transform the fortunes of the club.
They have taken a data-driven approach to recruitment which has proved fruitful and shown that forward-thinking can make a big difference in the changing football industry.
As Cardinale’s firm comes on board, they will bring with them access to a number of existing firms.
For instance, Cardinale is an investor in Texas-based firm Zelus Analytics, which is described as a world-leading sports intelligence platform for professional sports teams.
FSG, and therefore Liverpool, will have access to a new raft of entrepreneurial talent with links to Cardinale and the Reds could stand to benefit from their expertise in various ways.
