This. Well, I kind of understand what they get, but don’t understand why they get it. FSG bought LFC for x amount and it’s now worth much, much more. So that’s what they get. What I don’t understand is why it’s worth so much more when actual profits clubs make is so small in comparison. Why is LFC today worth so much more than when FSG bought it?
He sold up his stake in Meta I believe.
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The assets to be stripped aren’t worth these guys’ time. That is usually when you get down to it a real estate play.
I strongly suspect the value for Bezos is streaming plus brand association.
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Urghh… these words remind me of the g+h era.
But yeah, for me it isn’t clear either what they want from this. With fsg, it was quite straightforward. They bought an asset with huge potential, at a time when it was underexploited and undervalued, and worked on maximizing that potential. Now they have done it, they sell it with a huge profit.
But this lot? What could be their interest in pouring two billions in LFC, and possibly three-four further billions along the line? What do they see in the club which could make them make further profit? Or is it mainly speculation? Do they reckon that the club’s value will continue to increase no matter what?
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The way that football is ‘consumed’ (ugh) is changing, and will change as streaming comes to the fore more and more. The clear play for Bezos, as far as I can tell, is to be the leader in that space, and having a trophy club with a massive global fanbase will help.
I’m not sure if individual club deals will become a factor in the Prem, such as they have in Spain, but if things get splintered that way, we will come out of it well, given our viewing figures and global fan base.
Apart from that, I completely agree with the brand association benefit too. There will be numerous ways that the arrangement will be mutually beneficial, to enrich him further and increase revenue back into LFC.
On that last point, if that’s what they do, then essentially it’s just a continuation of FSG, which I’m fine with. So long as we continue to be run well, with professionals at all levels, and we don’t suffer from owner interference like we see at some clubs.
I don’t have any fear that crippling debt will be loaded on to us, or we will be asset stripped, or anything like that.
It’s a move into top level sport, on a global level, by some extremely wealthy people. The financial rules are in place that they can’t artificially inflate us, as we’ve seen with others, but they can continue to help grow LFC and boost revenue streams to keep us competitive at the top for the foreseeable.
I do think vanity is part of it too, and there is a sense in which you have so much money, what are you going to do next? A move into elite global sports fits the bill.
Edit
There is a heck of a lot to like about LFC, and I can understand it if Bezos wants to part with a few of his many billions to be associated.
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Streaming would be mere speculation, as there are no signs currently that we are heading into that direction. Brand association is a bit strange, as the usual ‘brand’ LFC stands for, which fsg have strongly exploited, is the ‘We are a family’ thing. A club staying near to its supporters, and strongly defined by them (the chants, the history etc.).
Linking Bezos, thus Amazon, to this peculiar brand is a bit strange imo. I’d understand if he had wanted to get a stake into Chelsea or Tottenham. But LFC? Scratching my head a bit here…
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Sports media is diversifying rapidly, including especially by the traditional media houses. Here in the US, Amazon began making major forays from last season and this can only grow. Same as Netflix btw…
Its quite easy to see the brand association and what potential future alignment could look like.
This is an important point. The first rule when you takeover a well run business (which LFC is, whatever we think about the onfield state of the team), is to not break it. So what happens is usually that you take time to look at how things works, without doing any drastic changes, then progressively you can tweak it where you feel it might improve.
LFC is under no pressure from a financial perspective to have to do drastic moves, unlike let’s very randomly say Manchester United.
Since FSG is still in control, they have all incentives to make sure that if they at some point minority owners, then the business keeps growing. So as long as they are involved in any way, they will make sure the new people are doing the right thing.
I also thing that FSG care about its legacy, and they know when they stop being involved in the running of the club, that will be out of their hand.
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To me, after reading this article, could be that FSG have moved two very wealthy individuals into a bidding war position, when FSG come to sell the remainder of their shares… Very smart move by them if they have, and far smarter than I could have ever grasped earlier on…
Liverpool supporters group to speak to club about Amit Bhatia £6billion takeover claim
Story by Paul Gorst - Liverpool Echo
Spirit of Shankly have reacted to the news that FSG have sold 30% of Liverpool FC
The chair of Spirit of Shankly says they are planning to speak to Liverpool over reports that Amit Bhatia’s consortium, which purchased over a third of the club last week, can buy it outright in 12 months for £6billion.
And SOS chief Jay McKenna has also questioned how the 1892 Holdings group - which contains Amazon founder Jeff Bezos and the co-founder of Facebook, Eduardo Saverin - plans to drive revenues further at Anfield, just months after the club made public a compromise over controversial plans to raise ticket prices
Last week it was confirmed that Mr Bhatia, who left Queens Park Rangers after nearly 20 years, would become Liverpool’s vice chairman with Elaine Saverin and Bryan Baum on the new-look board at Anfield as the representatives of Saverin and Bezos, respectively.
Bezos is the third richest man on the planet with a net worth of £204billion, while Saverin, the Harvard-educated, Brazilian-born businessman, has a personal fortune of around £24billion.
It’s understood that the stake purchased by 1892 Holdings is worth as much as 38% and around £1.65billion. A report from American publication CNBC on Friday, however, claimed the organisation could become the majority shareholder next year, which would pave the way for Fenway Sports Group’s eventual departure at Anfield.
Fenway sources have described the agreement as a flexible one without confirming that Bhatia’s firm are poised to take full control next year and Spirit of Shankly chair McKenna says the supporters’ union are seeking direct clarity.
“One of the questions we will be asking is that we have been led to understand this change of ownership is guaranteed,” McKenna told the ECHO. "We want to understand that and want to put it to FSG and the new owners.
"If we were told that the investors don’t have the right to [complete a full takeover] or if it’s just an option, and then next summer the club gets sold then we will want to know why we weren’t told.
"They won’t want the endless speculation, especially if people don’t like the way it is going and they call for new owners. But fans will want to know that because it is about transparency and honesty and I think there is a way for the club to lead the way on this.
"I don’t think anyone would look at this and say the level of the people involved are always content to just have a minority stake in Liverpool FC. They will want a say and if you asked most people, they would say it is to get a foot in the door and they want a bit of it long term.
"With FSG, this might not mean a 100% sale overnight but I can certainly see a world where they decrease their ownership over time.
“That will be a question we will want to ask in light of the media reports that it is a little bit more than an option, as opposed to a right to do it. So that is something we want to ask them.”
On Monday, SOS asked fans for their thoughts on the investment news as they look to collate questions and concerns to take to the club for more information.
McKenna added: "What do [our members] think about this? What do you think this means for Liverpool? What is it you’d like for us to pose to the club and to Amit Bhatia?
"Because it is only right that supporters get a voice in all of this. Hopefully we can get some answers for supporters, not for reassurances, but so they can get the information and make their own minds up.
“It’s the best way for the people to get to know supporters - by hearing from them directly about what they think and feel about things. Hopefully they can then use that to make it a success.”
Liverpool’s most recent revenues, made public in January, saw them break the £700m barrier for the first time - which was the most of an English club - before a post-tax profit of £8m was disclosed in February’s financial results.
It’s understood FSG were not duty-bound to make the Liverpool Supporters’ Board, created in the aftermath of the European Super League debacle in 2021, aware of the impending investment, however.
Mr McKenna, a season-ticket holder at Anfield, believes open and honest dialogue between the club, its owners and the relevant fan groups, can only benefit Liverpool FC going forward as a new era approaches on and off the pitch.
He added: "We did reach out to the club when the speculation first surfaced and there was no denial. The club couldn’t tell us too much at that juncture but they [said they] would when they could and to be fair we did get a heads up.
"We had some early talks with them about conversations around it but there was no consultation period around them saying: ‘We think these are the right people, here’s what it means.’
"We were told the same others have been told - there is no change on day-to-day running, it’s a small change on the board.
"But, you know, fans have seen this before and at other clubs, when rich individuals come in, so we want to engage and understand more and also for them to understand the fans a bit more.
"I’ve said to Liverpool owners good and bad [in the past] that fans are here with a voice and sometimes that means they get held to account and hear some things they don’t like, but it’s done with the best of intentions.
"But it’s a powerful force you can use on your side too. So if you can get the fans onside like we have seen Liverpool do then it can also make them understand what makes fans the way they are and it can be a powerful force for you.
“The effect on the pitch, we’ve seen that in fairly recent times, and it can help off it too. So I’d like think we can have that conversation and hope the new people get to understand that in time and understand a little bit more about each other.”
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Sometimes in life that’s all we have left.
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thoughts on Joyce article that fsg maybe should have been a bit transparent about the sale and shares being sold
At this point , I’d want the new shareholders (BBS) to be giving a statement on where they intend to take the club forward.
Way I see it is that FSG will be exitng.
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Maybe Standard Charter are/were waiting deep dive into new owners
Amazon to sponsor Liverpool then.
Add 150m to the highest paid shirt sponsored deal
Probably be one of his other companies to avoid accusations.
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He can invest directly from Amazon. There won’t be anything to hide. Look at the man City kit sponsor
I know but they probably don’t, regardless however it has to look suitable under the regulations. Probably some tech company you’ve never heard of.