Go fuck yourselves FSG

[an tha]

We must be the poorest rich club in the world.

 

https://www.theguardian.com/football/2023/sep/28/liverpool-fsg-sells-minority-stake-dynasty-equity-ends-search-for-investment

[an tha]

Quote something that FSG have been able to recoup roughly 50% of what they paid for the club for what appears to be about a 1.5% or so share.

[sir roger]

Liverpool's principal owner John Henry ( second left ) with Jurgen Klopp

 

Thanks to the BBC for clearing up that John Henry isn't Linda, Jurgen or either of the guys in high-vis tabard.

[BeefStroganoff]

I’d almost forgotten about these shites.

 

i suppose they get a minor pass this summer…

[TheHowieLama]

Nice of Linda to bring the war chest.

[lifetime fan]

Correct me if I’m wrong…

 

So the owners take in £100m+, they give away a tiny percentage fraction of the club which means fucking nothing to the club under ffp? 
 

FSG get £100m+ but seeing as they’ve never put a penny into the club that’s pure profit. 
 

That £100m is then paying down debt on the club that has always had to be self financing? 
 

I smell a massive fucking load of horseshit. 

[magicrat]

1 hour ago, lifetime fan said:

Correct me if I’m wrong…

 

So the owners take in £100m+, they give away a tiny percentage fraction of the club which means fucking nothing to the club under ffp? 
 

FSG get £100m+ but seeing as they’ve never put a penny into the club that’s pure profit. 
 

That £100m is then paying down debt on the club that has always had to be self financing? 
 

I smell a massive fucking load of horseshit. 

As I understand it they use the money to pay down debt . Giving up a small part of club to reduce its liability seems reasonable.

[lifetime fan]

28 minutes ago, magicrat said:

As I understand it they use the money to pay down debt . Giving up a small part of club to reduce its liability seems reasonable.

Debt the club has to pay its self! 

[Jurgen Knows]

It depends whether this is FSG selling shares or increasing capital.

 

To explain it better, let us assume the club is valued at 4.8 billion.
 

If the new investor puts in an additional 0.2 billion to increase the value of the club to 5 billion. That would be a 4% stake for the new investor and 96% share to FSG. In this case the 0.2 billion would be the club’s money and could be used to settle club debts or pay any business expenditures.
 

However, if the new investor buys shares from FSG then the value of the club remains at 4.8 billion, with 4.6 billion (95.83%) being FSG’s share and 0.2 billion (4.17%) being the new investor’s share. In this case the 0.2 billion would be FSG’s money and it would go straight to their pockets.

[El Dangerous]

I think once they realised the Saudis could fund their next two transfer windows by selling one player and boost the kitty even more by selling god knows who over the the foreseeable,  any chance of them selling a meaningful stake in the club disappeared. Much better to reevaluate in a few years when it becomes clearer what the long term financial gains are of sucking Saudi dick. You’d imagine the prospect of that Super League kicking off again has them licking their lips.

[an tha]

4 hours ago, Jurgen Knows said:

It depends whether this is FSG selling shares or increasing capital.

 

To explain it better, let us assume the club is valued at 4.8 billion.
 

If the new investor puts in an additional 0.2 billion to increase the value of the club to 5 billion. That would be a 4% stake for the new investor and 96% share to FSG. In this case the 0.2 billion would be the club’s money and could be used to settle club debts or pay any business expenditures.
 

However, if the new investor buys shares from FSG then the value of the club remains at 4.8 billion, with 4.6 billion (95.83%) being FSG’s share and 0.2 billion (4.17%) being the new investor’s share. In this case the 0.2 billion would be FSG’s money and it would go straight to their pockets.

It has been said the money will go towards debt payments.

 

 

[lifetime fan]

13 minutes ago, an tha said:

It has been said the money will go towards debt payments.

 

 

It ‘has been said’ but those told by the owners. 

[Scott_M]

9 hours ago, lifetime fan said:

Debt the club has to pay its self! 

Which it now won’t. 

[Barnesey]

If FSG sells existing shares in LFC to a new investor the Club wouldn't see the money. If FSG create new shares in LFC bought by a new investor, LFC would have the cash on its balance sheet. It could then use that money to reduce debt.

[lifetime fan]

22 minutes ago, Scott_M said:

Which it now won’t. 

Let’s see! 

[Moo]

6 minutes ago, lifetime fan said:

Let’s see! 

 

Exactly. Selling a stake to pay back loans from FSG seems a bit...unnecessary. But IF it wipes the slate clean the so be it. If.

[aws]

Any debt removed from the club is a good thing. 

[BeefStroganoff]

I thought we had no debt? I thought the point of being fiscal was that we don't want to get into debt?

[VladimirIlyich]

Surely every organisation carries debt nowadays? The trick is to only carry enough so as it doesn't interfere with other parts of how the business flows?

[Poor Scouser T]

1 minute ago, VladimirIlyich said:

Surely every organisation carries debt nowadays? The trick is to only carry enough so as it doesn't interfere with other parts of how the business flows?

Debt is essential. Only a fool invests their own capital.

[Bobby Hundreds]

So whatever percentage they have sold, the price tells you how much they value the club as a whole. 

[SasaS]

5 minutes ago, Bobby Hundreds said:

So whatever percentage they have sold, the price tells you how much they value the club as a whole. 

 

DM thinks it's five billion.

[Bobby Hundreds]

Just now, SasaS said:

 

DM thinks i'ts five billion.

Danger  Mouse!

[an tha]

From the Athletic:

What will Dynasty Equity’s money be used for?

Think of this as like a creative debt management plan rather than a transfer pot for manager Jurgen Klopp.

To bring some of Liverpool’s debt down, FSG has been looking for outside investment while remaining focused on the day-to-day running of the club.

The last set of accounts, up to June 2022, showed a net debt of £74million and inter-company debt of £71m. The £50m spent on Liverpool’s new training facility and the £12m purchase of their old base at Melwood for the women’s team are, however, not included in those figures.

Costs are also rising for the estimated £80million Anfield Road Stand expansion project, which was initially set for completion next month but has been delayed because the contractor, Buckingham Group, fell into administration.

So to summarise we had a bank debt of £74m and £71m "owed to FSG" for the Main Stand....

 

£50m still outstanding for the training ground, £80m plus for the Anny Rd  and then £12m for buying back Melwood. So all in all just shy of £300m.....

[SasaS]

BTW,  I think if the sale of a small stake reduces debt used for investments in stadium and facilities, that is a good thing. Even in the case the club is in this way repaying loans to FSG with interest (which I don't know if this is the case). It is better than the club repaying loans for the stadium improvements from revenue.