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Liverpool Echo
Liverpool Echo
Sport
Dave Powell

John Henry has just given Liverpool exactly what they needed

There appears to be some clarity at last.

This season has been one of struggle on the pitch for Jurgen Klopp and his Liverpool side. The feats of last season and sailing so close to what would have been an unprecedented quadruple, the hangover from that wild ride, allied with the lack of reinforcements to rejuvenate in the summer have seen the Reds look jaded.

But behind the struggle on the pitch there has been the constant unease that the November revelations around Fenway Sports Group potentially being ready to part company with the most valuable asset in their $10bn empire have brought.

READ MORE: John Henry finally breaks silence on future of Liverpool FC

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FSG had been looking for minority investment for some time, engaging both Goldman Sachs and Morgan Stanley merchant banks to facilitate that search. But the events of last year surrounding the expedited sale process of Chelsea changed the approach, as did the desire of some minority partners who had a long-held shareholding in FSG to consider divesting and realising some cash.

When Roman Abramovich was forced to sell Chelsea following the sanctions imposed on him by UK Government following Russia's military invasion of Ukraine, and his close historical ties to Russia president Vladimir Putin, it set off the most hotly contested auction process in British football history. One where the nature of the incredibly tight timescale due to Chelsea being on borrowed time financially meant that there were a wealth of would-be football club owners who were ready to spend.

The sale price, £2.5bn, was seen as overvalued by many US investors that the ECHO spoke to, but the winning bid of Todd Boehly and Clearlake Capital, backed up by Swiss billionaire Hansjorg Wyss, gave owners the first real taste of what the true value of top six assets in the Premier League could be worth.

With Liverpool one of the Premier League's very biggest clubs, with a global fan base of hundreds of millions and with success on and off the field to boast of, there was a desire by FSG to test the water and see just how much interest was out there as the Reds ownership group sought to recapitalise the business ahead of what is expected to be a costly rebuild where the sale of players won't be able to make a serious dent in what the outlay needs to be.

What do you think of John Henry's comments about FSG's future ownership of Liverpool? Take our survey below:

What the Chelsea sale did, crucially, was create losers, and visible ones at that. Dozens of bids came to the table for Chelsea as the Raine Group, who are managing the sale of Manchester United at present, whittled down their options. Those who failed to acquire Chelsea remain keen on the Premier League, and with that level of demand having been in the market it was seen as the ideal time for FSG to try and bring in new investment.

The idea of a full sale was considered, although it would have needed to be a major offer, likely in excess of £4bn, to encourage FSG to sell. In truth, the latent value within the Premier League that FSG believe exists, and the reason why it remains such a sought after league with immense scarcity value, is one of the reasons why they do not wish to sell the team. Also, it is understood that some of the partners that have come on board in recent times would not have been advocates for a sale given the long-term strategy that was at play when they invested in the first place.

It did not stop the rumour mill, though. Interested parties from across the globe were said to have been in talks, with social media accounts abuzz with rumours of an impending takeover by sovereign wealth funds, with the Qatar Investment Authority one rumour that got considerable traction. There were even suggestions of clandestine meetings between interested bidders from the Middle East and FSG in Liverpool in January.

Well-placed financial sources in the US had maintained the stance that it was a 'strategic partner' that FSG were seeking, one that could provide them with both capital and expertise, potentially providing an in for the next owners of the football club to acquire a small stake before accreting it over time into a full shareholding.

Those same sources stated that there had been no bids for the club and no high level talks, with the reported talks between FSG chiefs and sovereign wealth funds that drilled down into a potential stakeholding needed to strike a deal described as 'not real'.

The backdrop of Manchester United being put up for sale, with more desire to do so by the Glazer family in the days after FSG's own reveal saw some of the buzz that would have been around the Reds and a minority stake quelled. The potential full sale of United meant that the long list of those beaten to the punch for Chelsea, or denied at some stage during that auction process, were keeping their powder dry when it came to where to place their investments.

There has seemed to be more noise, more furore, around what has been transpiring off the pitch than on it this season, and as the situation has gone on it has only served to heighten the unease.

Now, an answer buried within a question about the future ownership of the Boston Red Sox by FSG probably isn't the ideal way to convey such information to a global fan base who have been left wondering what direction the club is heading in recent months. But the notoriously media shy Henry stayed true to form, and to why he doesn't speak publicly so often, with his utterances often giving plenty of candour.

But the question was answered at least. FSG are not selling Liverpool Football Club.

In response to questions from the Boston Sports Journal, via email, ahead of the start of spring training for the Red Sox in Fort Myers, Florida, Henry wrote: "I know there has been a lot of conversation and quotes about LFC (Liverpool Football Club), but I keep to the facts: we merely formalized an ongoing process.

"Will we be in England forever? No. Are we selling LFC? No. Are we talking with investors about LFC? Yes. Will something happen there? I believe so, but it won't be a sale. Have we sold anything in the past 20+ years?"

GET INVOLVED: Have Liverpool's owners invested enough in players? Let us know in the comments section

The continued stewardship of Liverpool by FSG isn't something that will please everybody, and there are real and valid questions that the ownership need to address with actions, namely the spending required this coming summer to rebuild a side that has been hamstrung by two or three missed opportunities in transfer windows in recent years.

But there needed to be clarity, there needed to be a sense of what the actual plan was. Rumours bring unease, they do not aid focus. Klopp will have known Henry's stance from the get-go, not least because the Liverpool manager has a strong, trusting relationship with Mike Gordon, FSG's third in command and the man who has pivoted from day to day operations at Liverpool to being the point man for the search for investment, which is what we can now describe the process with some certainty.

There are some clues as to what happens in what Henry wrote.

They won't be in England forever, and it is highly likely that when they do choose to depart from Liverpool they will switch their focus solely to North American sports, with the NBA and NFL potential destinations depending on the structural changes that those leagues would need to undergo before FSG pressed ahead with plans. Those changes aren't imminent.

I've been pretty clear from the off that this does feel like it is the beginning of the end for FSG's ownership of Liverpool, although an expedited timeframe that doesn't align with longer term objectives has always made it feel like this isn't the time. Not right now.

Whoever comes in as a minority partner will be interesting. It will likely be someone who FSG feel they can work with, who offers something they feel they don't possess and someone who may have the power to accrete their stake over time and own the club, or work with someone who could take the club on in the future.

Regardless, just having some clarity on the situation means that the focus, for now at least, should be able to switch back to the on-field challenges, with the Reds' last two games having given some renewed hope for this season. What happens in the summer will provide answers to the more searching questions around the direction for the longer term, with FSG needing to invest in a way that they have not done previously.

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