Fenway Sports Group (FSG) have agreed a sale of one of their assets worth an estimated £1.35 billion according to reliable reports.
Liverpool supports often have a hot-and-cold relationship with principal owners Fenway Sports Group (FSG). It is a well-trodden narrative at Anfield: the “self-sustaining” model means that the club’s spending power is inextricably linked to the successes – and failures – of the owners’ wider business portfolio.
When John W. Henry and Tom Werner turn a profit elsewhere, the collective hope on the Kop is that the liquidity eventually finds its way to the transfer committee.
After a week of conflicting reports and rumored “snags” regarding exclusive negotiating windows, it appears FSG has finally secured a major financial victory that could have significant ripples across their empire.
According to fresh reports from Chicago Business and Bloomberg, Fenway Sports Group has agreed in principle to sell the Pittsburgh Penguins to the Chicago-based Hoffmann Family of Companies. The deal is set to value the NHL (National Hockey League) franchise between $1.7 billion and $1.8 billion (approx. £1.35 billion).
This agreement marks a staggering return on investment for FSG. The Boston-based conglomerate originally acquired the controlling stake in the Penguins for roughly $900 million. If the sale closes at the reported $1.8 billion valuation, FSG will have effectively doubled their money in just three years, banking a gross profit in the region of $900 million (£675m – £700m).
The deal hasn’t been without its drama. Only recently, reports surfaced that the Hoffmann family’s “exclusive negotiating window” had lapsed, leading to speculation that FSG might have to reopen the floor to other bidders. However, it appears those complications have been ironed out. The sale now awaits approval from the NHL’s Board of Governors, with a vote potentially taking place before their scheduled meeting in June.
Liverpool fans will be asking the obvious question: Where does the money go?
The sale provides FSG with a massive injection of liquid capital. It is widely believed that FSG, and key investor LeBron James, are positioning themselves to bid for an NBA expansion team in Las Vegas. However, a windfall of this magnitude strengthens the group’s overall balance sheet significantly.
Whether that results in a direct boost to Liverpool’s summer transfer kitty remains to be seen, but FSG suddenly finding themselves with an extra £700m in pure profit is certainly better news for the Reds than the alternative.
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