For Gerry Cardinale's RedBird Capital Partners private equity firm it has been quite the year.
After taking a majority stake in French second tier side Toulouse last summer, RedBird have since bought a 15 per cent stake in the Indian Premier League side Rajasthan Royals plus a small stake in Spanish side Malaga, been a driving force behind the plans to revive the XFL alongside Hollywood actor Dwayne Johnson, taken a stake in global talent and marketing agency and, of course, acquired 11 per cent of Liverpool owners Fenway Sports Group.
RedBird are not direct investors in Liverpool, their €750m capital injection in FSG back in March very much part of their 'business building' approach, where capital is used to aid the growth of the business through new development and investment in infrastructure, as evidenced by the Anfield Road redevelopment and large scale work being done across the Atlantic around Fenway Park, the home of the FSG-owned Boston Red Sox.
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Cardinale had been at the table late last year alongside baseball analytics guru Billy Beane, of 'Moneyball' fame, as their RedBall special purpose acquisition company sought to take a 20-25 per cent holding in FSG and take the firm public.
That deal broke down for numerous reasons, differences over investor valuations among them, but Cardinale and FSG continued to talk over private investment through RedBird, with Cardinale's strong existing relationship with FSG's principal owner John W Henry one of the driving forces.
The past year has seen private equity firms arrive continue to arrive in sport in a big way, with funds seeing the opportunity in crisis and lower valuations, knowing that the market is likely to bounce back once sport finds its way through the mayhem caused by the pandemic.
Cardinale and RedBird want to add more clubs to their portfolio. The US private equity firm looked at over 80 clubs before landing on Toulouse and they are, according to RedBird partner Alec Scheiner, looking at 'three or four' to be part of their stable of clubs, following a similar route to what Manchester City owners City Football Group have done with multi-club ownership.
With Henry and Liverpool chairman Tom Werner both now in their 70s the question has been asked regarding succession planning and what happens should the pair decide to take a back seat or remove themselves from the action altogether.
Should that happen then private equity would likely come into play again.
Some think that RedBird, already at the table and who hold a significant stake, could well have a greater say in the future.
Football will see more and more private equity firms arrive on board, but Cardinale has sounded a warning to would-be investors in sport.
And his message expresses sentiments that may please Liverpool fans when it comes to the 'dynamics' of club ownership.
"(Private equity firms need to approach ownership) embracing the partnership between the fans and their teams, as well as between athletes and their teams and leagues," he told Private Equity International.
"Investors need to appreciate the community and country dynamics in which they are investing – teams at the most fundamental level are emotional assets and brands that ultimately belong to the fans and their larger community."
Investment in sport, particularly football, has long been done so through the belief that the rise in value will continue. Cardinale doesn't think investors should be banking on that.
He said: "The biggest risk investing in sports today is to get lulled into believing that values will always go up."
