Liverpool's owners FSG are said to be exploring multiple club takeover's to expand their football club portfolio further.
It has been suggested for over a year that FSG (Fenway Sports Group) are looking to purchase another football club and enter the multi-club ownership realm, entrusting Michael Edwards as their chief executive of football.
In recent weeks, talk of a deal to by Spanish side Getafe has accelerated, but it has now emerged that they are looking at multiple clubs, and they may also be expanding into new sports.
What are Liverpool owners FSG's plans for a multi-club ownership programme?
The multi-club ownership model is not new, and has been increasingly used by executives of Premier League clubs, usually for development pathways and broader and deeper scouting networks. Take the City Football Group and Red Bull for example.
It is believed that while FSG value those reasons, they also view it as much of a commercial opportunity as they do a sporting.
A bid to buy their second football club appears to be nearing completion, with a source stating a 'deal in principle' has been agreed to buy Getafe.
It is rumoured that the cost would be in the region of £200 million, including the purchase price and a subsequent funding commitment.
The source that stated a deal was close also suggested it could rely on Liverpool's summer spending, a curious line when it comes to the finances of the Reds.
Previously, FSG have only invested their own in the club to fund infrastructure upgrades, such as the new main stand, Anfield Road stand and the AXA training centre.
Liverpool's transfer funds were previously derived from the revenue costs, which have soared in recent years.
This summer, Liverpool have already signed Florian Wirtz (€125m), Milos Kerkez (€46.9m) and Jeremie Frimpong (€40m), and are being heavily linked with a move for Newcastle's Alexander Isak, which, if is to be pulled off, would likely need to smash the British transfer record.
It is therefore conceivable that FSG may need to dip into their own funds to allow for such unprecedented spending.
This could therefore have an impact, on if, and when, a purchase of a next club occurs.
Should talks break down with Getafe, FSG have another club in mind, again a Spanish side, Levante.
However, they are not planning on stopping there. A club in Portugal is being lined-up to become the third club in FSG's football portfolio. The Portuguese league is said to attract the American businessmen due to its development corridor with Brazil and the coaching culture.
It is also rumoured they have started looking at English rugby union, with rumours Premiership Rugby are considering moving to a franchise-style model which experts say is likely to make it far more investible
FSG's sport and entertainment portfolio is said to be valued at around £12 billion, with Liverpool the most valuable commodity, just ahead of Major League Baseball side, Boston Red Sox.
Why Liverpool fans should care about FSG's potential multi-club ownership
Liverpool would probably see the benefits of the multi-club model in the long-term. Essentially, owning multiple clubs can create an ecosystem of scouting and player development, and allows you to remove unknown variables from the game.
Speaking to TBR football on multi-club ownership University of Liverpool football finance lecturer Kieran Maguire said: “FSG are aware of the direction of travel when it comes to player recruitment. You are looking for younger and younger talent. Having a club in the European Union is attractive.”
“Because of the way the governing body endorsement system is set up, that can help you attract Spanish players, players from the EU and South America. You can use it, not as a holding area, but as an opportunity to try out the talent and see if the promise that you saw when a given player was 18 is still there when they are 17 and 18 and so on.”
Debate surrounds multi-club ownership especially in UEFA, with Crystal Palace and Lyon involved in a dispute following both of their qualifications to the Europa League.
Maguire suggested that this shouldn't impact Liverpool, should FSG purchase another club in European competition. "The multi-club train left the station a long time ago”, he suggests. “If you look at UEFA’s most recent report, there was something like 350 clubs involved in a multi-club group of some form.
“You cannot go back in time, so I think UEFA are trying to manage it. It’s about setting up a system that has checks and balances which will have credibility in terms of the integrity of the game.”
Liverpool's spending, and age demographic of spending this summer could hint towards future investment abroad from FSG.
Wirtz, Frimpong and Kerkez have an average age of 22, suggesting their peak years are ahead of them. Whilst all operate at a top level already, it isn't unfair to suggest they are expected to still get better, suggesting FSG may be planning to go big this summer before slower investment in the coming years.
