NESV - OUR NEW OWNERS - Official Thread
by Eagle » Wed Mar 01, 2023 12:01 pm
kazza » Wed Mar 01, 2023 5:32 am wrote:When you look at how much PL clubs make profit per year, I cannot understand why it’s the trend right now to buy PL teams if you are mega rich. There must be something else we are not seeing. I see going from 300 million to 3 billion as a reason why but Liverpool was an exception, but a team like Chelsea selling for 3 billion…. and not state funded or a superfan? Seems dodgy!
Football clubs generally don't turn over a profit for their owners and while the aim is to break even many are actually loss generating. You do have some owners like the Glazers and Kroenke who take a dividend. And in the Glazers case, revenue Man Utd generate goes to paying the loan that was used to buy the club (pretty outrageous). Below is from FSG CEO Sam Kennedy and explains their model and why if you're not a country engaged in sports washing why you would invest in a football club.
Chelsea is a strange one. They've been bought out by a consortium of investors led by a private equity firm. But they certainly haven't acted like one since they took charge. They've been brash and reckless and nothing about their behaviour so far suggests they are working for a return on investment. They've been acting like an oil state with money to burn or a drug lord with money to wash. I do wonder who the other investors in the consortium are.
PL clubs now have a lot of American owners and I think there will be an attempt in the next few years to change the way TV rights work to make them more profitable (global pay per view, clubs selling their own games, etc). I'm guessing that's where the attraction is for investors. They probably see the PL and think it's a dated model and they can increase global TV right revenue significantly and subsequently increase the value of the clubs they are buying.
Kennedy said: "We are a platform company designed to win championships with the teams and clubs it owns and operates. That's first and foremost because the business flows and the value creation flows from winning. That is our north star, winning championships and being involved in markets that have incredibly avid fan bases that care deeply about their teams.
"We have a revenue first mentality here where we are trying to generate as much revenue as possible from every source, and then we have been re-investing it into the product on the field and into the venues in which we occupy.
"Fenway Sports Group as a company has great revenues and growth and profitability, but the individual sports team assets have years that are up and down, that are break-even, that are cash losses, and I think it takes a really special type of investor, someone who really has gone into the space and who understands the space to see where the value creation comes from. It's not a quarterly look at EBITDA or cash flow, it's really building long-term equity value through investing those revenues back into the product."
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Eagle - Posts: 1718
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by kazza » Thu Apr 20, 2023 7:50 pm
Daniel Levy has just said exactly what Liverpool are thinking ahead of UEFA transfer rule change
Spurs chairman Levy believes that new UEFA rules will impact spending power of even the biggest clubs
ByDave Powell
15:04, 20 APR 2023
When it comes to transfer spend, Liverpool and Tottenham Hotspur are more closely entwined with each other than they are with the rest of the so-called ‘big six’.
The ownership of both clubs has sought to build infrastructure to deliver value and support investment into the team and, ultimately, the chances of succeeding on the pitch.
Where the spending of their rivals on transfer fees has considerably outpaced their own, a change of approach has not been enforced despite some pressure from fans keen to ensure that their clubs don’t get left behind and taken out of the trophy equation.
For Liverpool under Fenway Sports Group it is a model that has had success, although the hiring of Jurgen Klopp as manager in 2016 was a pivotal moment in its progression. The fact that FSG have not had to deal with the tumult that comes with the chopping and changing of managers due to Klopp’s stellar work in rebuilding the club has meant that, until this season at least, the model was seen to still be functioning as intended.
Where FSG invested in a redeveloping Anfield into a world class venue, Spurs’ ownership of ENIC and Daniel Levy put their future hopes in the delivery of the state of the art £1bn Tottenham Hotspur Stadium, a development that they feel will provide the revenue opportunity for the club to continue to grow and invest into on-pitch success.
Liverpool and Spurs are the most obvious examples of clubs being run with a business-minded approach to underpin success, which is ultimately what the clubs exist to strive to achieve. But achieving that has become harder and harder in recent years with both clubs outspent heavily in the transfer market by the likes of Manchester City, Manchester United and Chelsea.
Chelsea, having been taken over by Todd Boehly and Clearlake Capital last year, have taken things to a new level in recent times, with over £500m spent across two transfer windows and the club handing out seven, eight and nine years deals to players in a bid to drive down amortisation costs on the balance sheet (the accounting of transfers through transfer fee divided by length of contract).
With Manchester City having been landed with over 100 charges of alleged breaches of profit and sustainability rules by the Premier League, and UEFA keeping a watchful eye on Chelsea, changing their own rules from this summer to cap contract lengths at five years, there is a push to try and tackle the spending of major European football, predominantly in the Premier League.
Liverpool and Spurs are no paupers, the Reds spent the second highest sum on wages in 2021/22 (£366m) due to bonus payments coming into play, but when it comes to how willing the owners are to accept heavy losses to fund transfer spend, their approach differs from some other ownership groups.
Spurs chairman Levy and FSG principal John W. Henry will undoubtedly be pleased with the change in regulations that will arrive this summer from UEFA, where a newly introduced cost control rule will restrict spending on player and coach wages, transfers, and agent fees to 70 per cent of club revenues. Rules will permit 90 per cent in the first year, the figure reaching 70 per cent by year three.
Levy believes that the new regulations will be impactful when it comes to the spending in the Premier League, regardless of who is the owner of the football club.
Addressing questions during an appearance at the Cambridge Union, Levy said: “There are new rules coming into effect this season, UEFA rules where sustainability is going to become much more paramount in people’s minds.
“You will be limited to the amount that you can spend on wages and transfer fees, effectively the amortisation element, as a percentage of your total turnover. It is starting off at 90 per cent and after three years it is going down to 70 per cent.
“The impact of that is effectively some form of wage control. So I think that even though clubs have been spending very heavily, and you talk about someone like Chelsea, now the new rules come into effect this summer I think you’ll find that regardless of who is the owner it is going to have quite an impact on the financing of football.”
Liverpool principal owner Henry has long been an advocate of running the club in a sustainable manner, something that has had a knock on effect with regards to transfer spend that has been viewed less than favourably by some Reds fans, particularly during a season of struggle for Liverpool such as they are enduring this campaign.
During an exclusive interview with the ECHO last month, Henry said: “We continue building at Liverpool Football Club in a responsible manner.
“We’ve seen many football clubs go down unsustainable paths. We have and will continue to focus our attention on investing wisely in the transfer market and we remain incredibly proud of our squad.
“At the same time we continue investing in our training facilities, our main stand and currently the Anfield Road stand. These are all physical reflections of our resolve and how very seriously Fenway Sports Group takes its responsibilities for this great club.”
Spurs chairman Levy believes that new UEFA rules will impact spending power of even the biggest clubs
ByDave Powell
15:04, 20 APR 2023
When it comes to transfer spend, Liverpool and Tottenham Hotspur are more closely entwined with each other than they are with the rest of the so-called ‘big six’.
The ownership of both clubs has sought to build infrastructure to deliver value and support investment into the team and, ultimately, the chances of succeeding on the pitch.
Where the spending of their rivals on transfer fees has considerably outpaced their own, a change of approach has not been enforced despite some pressure from fans keen to ensure that their clubs don’t get left behind and taken out of the trophy equation.
For Liverpool under Fenway Sports Group it is a model that has had success, although the hiring of Jurgen Klopp as manager in 2016 was a pivotal moment in its progression. The fact that FSG have not had to deal with the tumult that comes with the chopping and changing of managers due to Klopp’s stellar work in rebuilding the club has meant that, until this season at least, the model was seen to still be functioning as intended.
Where FSG invested in a redeveloping Anfield into a world class venue, Spurs’ ownership of ENIC and Daniel Levy put their future hopes in the delivery of the state of the art £1bn Tottenham Hotspur Stadium, a development that they feel will provide the revenue opportunity for the club to continue to grow and invest into on-pitch success.
Liverpool and Spurs are the most obvious examples of clubs being run with a business-minded approach to underpin success, which is ultimately what the clubs exist to strive to achieve. But achieving that has become harder and harder in recent years with both clubs outspent heavily in the transfer market by the likes of Manchester City, Manchester United and Chelsea.
Chelsea, having been taken over by Todd Boehly and Clearlake Capital last year, have taken things to a new level in recent times, with over £500m spent across two transfer windows and the club handing out seven, eight and nine years deals to players in a bid to drive down amortisation costs on the balance sheet (the accounting of transfers through transfer fee divided by length of contract).
With Manchester City having been landed with over 100 charges of alleged breaches of profit and sustainability rules by the Premier League, and UEFA keeping a watchful eye on Chelsea, changing their own rules from this summer to cap contract lengths at five years, there is a push to try and tackle the spending of major European football, predominantly in the Premier League.
Liverpool and Spurs are no paupers, the Reds spent the second highest sum on wages in 2021/22 (£366m) due to bonus payments coming into play, but when it comes to how willing the owners are to accept heavy losses to fund transfer spend, their approach differs from some other ownership groups.
Spurs chairman Levy and FSG principal John W. Henry will undoubtedly be pleased with the change in regulations that will arrive this summer from UEFA, where a newly introduced cost control rule will restrict spending on player and coach wages, transfers, and agent fees to 70 per cent of club revenues. Rules will permit 90 per cent in the first year, the figure reaching 70 per cent by year three.
Levy believes that the new regulations will be impactful when it comes to the spending in the Premier League, regardless of who is the owner of the football club.
Addressing questions during an appearance at the Cambridge Union, Levy said: “There are new rules coming into effect this season, UEFA rules where sustainability is going to become much more paramount in people’s minds.
“You will be limited to the amount that you can spend on wages and transfer fees, effectively the amortisation element, as a percentage of your total turnover. It is starting off at 90 per cent and after three years it is going down to 70 per cent.
“The impact of that is effectively some form of wage control. So I think that even though clubs have been spending very heavily, and you talk about someone like Chelsea, now the new rules come into effect this summer I think you’ll find that regardless of who is the owner it is going to have quite an impact on the financing of football.”
Liverpool principal owner Henry has long been an advocate of running the club in a sustainable manner, something that has had a knock on effect with regards to transfer spend that has been viewed less than favourably by some Reds fans, particularly during a season of struggle for Liverpool such as they are enduring this campaign.
During an exclusive interview with the ECHO last month, Henry said: “We continue building at Liverpool Football Club in a responsible manner.
“We’ve seen many football clubs go down unsustainable paths. We have and will continue to focus our attention on investing wisely in the transfer market and we remain incredibly proud of our squad.
“At the same time we continue investing in our training facilities, our main stand and currently the Anfield Road stand. These are all physical reflections of our resolve and how very seriously Fenway Sports Group takes its responsibilities for this great club.”
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kazza - >> LFC Elite Member <<
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by Eagle » Thu Sep 28, 2023 2:47 pm
The deal is thought to be worth between $100million (£82m) and $200m (£164m) and based on Forbes’ $5.3billion (£4.3bn) valuation of Liverpool, that represents a minority investment of between 1.9 per cent and 3.8 per cent. Imagine the FSG investors who are diluting their shares will get something but it's good news that it's also being used to pay down money owed to the bank.
https://www.liverpoolfc.com/news/fsg-an ... sty-equity
FSG announces strategic minority investment in LFC from Dynasty Equity
Fenway Sports Group has today announced that global sports investment firm Dynasty Equity has completed a strategic common equity minority investment in Liverpool FC.
“Our long-term commitment to Liverpool remains as strong as ever,” said FSG president Mike Gordon. “We have always said that if there is an investment partner that is right for Liverpool then we would pursue the opportunity to help ensure the club’s long-term financial resiliency and future growth.
“We look forward to building upon the long-standing relationship with Dynasty to further strengthen the club’s financial position and sustain our ambitions for continued success on and off the pitch.”
The minority investment will primarily be used to pay down bank debt incurred during the COVID-19 pandemic and capital expenses made to enhance Anfield, build the AXA Training Centre, repurchase Melwood training ground and, most recently, acquisitions during the summer transfer window.
Longer term, the partnership between Dynasty and FSG will also explore further growth opportunities for Liverpool FC.
“We are honoured to partner with FSG and support the remarkable legacy of Liverpool in a strategic partnership that builds upon mutual respect and deep relationships among our respective teams,” said Dynasty executive chairman Jonathan M. Nelson.
Dynasty’s chief executive officer, K. Don Cornwell, added: “Liverpool is one of the most iconic football clubs in the world with a passionate fanbase and significant global reach. Dynasty is privileged to support the club and work alongside FSG to execute on the tremendous growth opportunities ahead.”
https://www.liverpoolfc.com/news/fsg-an ... sty-equity
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by kazza » Fri Mar 01, 2024 11:00 am
Liverpool announce £9m loss for 2022-23 season
Liverpool made a pre-tax loss of £9m last season as increased commercial income did not offset a drop in money made from media and matchday revenues.
The previous 12 months had produced a small profit of £7.5m.
Liverpool's biggest income stream in 2022-23 was the £272m, up £25m, generated from off-field income, but a last-16 Champions League exit a year after reaching the final meant television money dropped by £19m to £242m.
Matchday revenue also fell by £7m due to fewer games being played across last season after the previous campaign when the club played in every fixture - a total of 63 - they were eligible for, winning both domestic cups and reaching the Champions League final.
While overall revenue remained the same at £594m, increasing costs are cutting into the balance sheet with staff expenses having increased 79 per cent since 2018, up from £208m six years ago to £373m for the year ending May 2023.
The wage bill in this period alone rose £7m to £373m.
Administrative expenses for that same period have increased by 70 percent from £320m to £562m, while utility costs have doubled from two years ago while rising inflation has driven up other costs.
"Operating this great club in a financially sustainable manner and in accordance with football's governing principles has been our priority since FSG [Fenway Sports Group] acquired LFC in 2010," said managing director Andy Hughes.
"Despite the significant growing costs of football, the success of our commercial operations demonstrates the strength of our underlying financial position so we can continue to operate sustainably while competing at the highest levels of football.
"While these financial results are a moment in time on our journey, what remains constant is the growing global appeal of the club and, thanks to our amazing support, LFC continues to be the most globally followed club in the Premier League."
Matchday revenue will increase after the new Anfield Road stand was fully opened earlier this month, taking Anfield's attendance to 61,000.
"Matchday revenue is a hugely important part of our overall financial sustainability model," added Hughes.
During the reporting period Liverpool signed Darwin Nunez, Cody Gakpo, Calvin Ramsay and youth team goalkeeper Kornel Misciur for a combined initial fee of £105m, but offloaded Sadio Mane, Divock Origi, Takumi Minamino and Neco Williams.
There were also significant contract renewals for Mohamed Salah - who became the highest earner in the club's history with a reported £300,000-a-week deal - Joe Gomez, Harvey Elliott, Curtis Jones, Jarell Quansah, Stefan Bajcetic and Ben
Doak.
Liverpool made a pre-tax loss of £9m last season as increased commercial income did not offset a drop in money made from media and matchday revenues.
The previous 12 months had produced a small profit of £7.5m.
Liverpool's biggest income stream in 2022-23 was the £272m, up £25m, generated from off-field income, but a last-16 Champions League exit a year after reaching the final meant television money dropped by £19m to £242m.
Matchday revenue also fell by £7m due to fewer games being played across last season after the previous campaign when the club played in every fixture - a total of 63 - they were eligible for, winning both domestic cups and reaching the Champions League final.
While overall revenue remained the same at £594m, increasing costs are cutting into the balance sheet with staff expenses having increased 79 per cent since 2018, up from £208m six years ago to £373m for the year ending May 2023.
The wage bill in this period alone rose £7m to £373m.
Administrative expenses for that same period have increased by 70 percent from £320m to £562m, while utility costs have doubled from two years ago while rising inflation has driven up other costs.
"Operating this great club in a financially sustainable manner and in accordance with football's governing principles has been our priority since FSG [Fenway Sports Group] acquired LFC in 2010," said managing director Andy Hughes.
"Despite the significant growing costs of football, the success of our commercial operations demonstrates the strength of our underlying financial position so we can continue to operate sustainably while competing at the highest levels of football.
"While these financial results are a moment in time on our journey, what remains constant is the growing global appeal of the club and, thanks to our amazing support, LFC continues to be the most globally followed club in the Premier League."
Matchday revenue will increase after the new Anfield Road stand was fully opened earlier this month, taking Anfield's attendance to 61,000.
"Matchday revenue is a hugely important part of our overall financial sustainability model," added Hughes.
During the reporting period Liverpool signed Darwin Nunez, Cody Gakpo, Calvin Ramsay and youth team goalkeeper Kornel Misciur for a combined initial fee of £105m, but offloaded Sadio Mane, Divock Origi, Takumi Minamino and Neco Williams.
There were also significant contract renewals for Mohamed Salah - who became the highest earner in the club's history with a reported £300,000-a-week deal - Joe Gomez, Harvey Elliott, Curtis Jones, Jarell Quansah, Stefan Bajcetic and Ben
Doak.
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kazza - >> LFC Elite Member <<
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by bunglemark2 » Fri Mar 01, 2024 12:21 pm
Admin Expenses exploded, curious about the detail on this
http://s2.tinypic.com/30ldif7_th.jpg
See yooo, Judas. Yoo're gettin' on mah titz !
See yooo, Judas. Yoo're gettin' on mah titz !
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by kazza » Sun Mar 10, 2024 5:19 am
https://www.skysports.com/football/news/11669/13091198/liverpool-michael-edwards-return-set-to-be-confirmed-with-ex-bournemouth-man-richard-hughes-also-set-to-join
https://anfieldwatch.co.uk/david-ornstein-shares-huge-update-regarding-michael-edwards-liverpool-return/?fbclid=IwAR0Ceu02VC9FQw1UrtGI_51ZwCQFH2Uwxd67Lnm1Zb0ehpz7e8gW0RCIw7o
https://anfieldwatch.co.uk/david-ornstein-shares-huge-update-regarding-michael-edwards-liverpool-return/?fbclid=IwAR0Ceu02VC9FQw1UrtGI_51ZwCQFH2Uwxd67Lnm1Zb0ehpz7e8gW0RCIw7o
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kazza - >> LFC Elite Member <<
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by 7_Kewell » Sun Mar 10, 2024 12:34 pm
kazza » Sun Mar 10, 2024 4:19 am wrote:https://www.skysports.com/football/news/11669/13091198/liverpool-michael-edwards-return-set-to-be-confirmed-with-ex-bournemouth-man-richard-hughes-also-set-to-join
https://anfieldwatch.co.uk/david-ornstein-shares-huge-update-regarding-michael-edwards-liverpool-return/?fbclid=IwAR0Ceu02VC9FQw1UrtGI_51ZwCQFH2Uwxd67Lnm1Zb0ehpz7e8gW0RCIw7o
Huge news, if true.
Wonder if it'll influence Klopp's decision to go?
“You cannot transfer the heart and soul of Liverpool Football Club, although I am sure there are many clubs who would like to buy it.”
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7_Kewell - >> LFC Elite Member <<
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by kazza » Mon Mar 11, 2024 9:17 am
7_Kewell » Sun Mar 10, 2024 11:34 am wrote:kazza » Sun Mar 10, 2024 4:19 am wrote:https://www.skysports.com/football/news/11669/13091198/liverpool-michael-edwards-return-set-to-be-confirmed-with-ex-bournemouth-man-richard-hughes-also-set-to-join
https://anfieldwatch.co.uk/david-ornstein-shares-huge-update-regarding-michael-edwards-liverpool-return/?fbclid=IwAR0Ceu02VC9FQw1UrtGI_51ZwCQFH2Uwxd67Lnm1Zb0ehpz7e8gW0RCIw7o
Huge news, if true.
Wonder if it'll influence Klopp's decision to go?
I’m thinking that maybe Klopp was the reason he left.
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kazza - >> LFC Elite Member <<
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by damjan193 » Tue Mar 12, 2024 3:13 pm
Michael Edwards announced as CEO of Football (new position higher than Sporting Director). Amazing news that they brought him back but we'll see what his position means for how the club functions.
Richard Hughes not yet officially announced as sporting director but likely to happen soon.
Richard Hughes not yet officially announced as sporting director but likely to happen soon.
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by 7_Kewell » Tue Mar 12, 2024 8:57 pm
Excellent news.
“You cannot transfer the heart and soul of Liverpool Football Club, although I am sure there are many clubs who would like to buy it.”
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7_Kewell - >> LFC Elite Member <<
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