Liverpool investor sends checkbook warning to Newcastle United new regime

0

A major investor in the Liverpool ownership group has warned that investing in a sports team is not as easy as writing a big check.

Gerry Cardinale, a U.S. sports investor who invested $ 750 million in Fenway Sports Group (FSG) earlier this year, was speaking at the Financial Times Business of Sport Summit last week.

The FSG owns Liverpool FC as well as the Boston Red Sox, and their strategy has been described as more sustainable than state-owned or oligarch-owned clubs, with an emphasis on revenue growth and prudent trading.

According to the Liverpool Echo, Cardinale, who runs an investment firm with Billy Beane, which inspired the baseball analysis film Moneyball, said at the summit: “We have spent the last three years training in European football.

Video upload

Video unavailable

“I have always stayed away from European football because when you see an ecosystem that attracts rulers and oligarchs you might say to yourself that there is no room for someone like me at this table . “

However, when asked about the takeover of Newcastle by Saudi Arabia’s sovereign wealth fund and how clubs like Liverpool might compete in the years to come, he felt it was entirely possible.

“When you sum up,” he said, “there is a false narrative there. You don’t have to sacrifice your cash flow to perform well in the field. I think this is a false story. It’s Moneyball, and Billy educated me on it.

“We have met over 70 teams in Europe and developed a thesis on how we can do our type of investing and starting a business and seek out and become a rights holder.

“Sport is a closed ecosystem and it’s very difficult to present yourself without the continuum, experience and relationships and start writing checks.

“You can write a check for $ 500 million and go buy something, but there isn’t as much of a partnership with the rights holders to start a business.”

Despite Cardinale’s investment, FSG is still run by John Henry, Tom Werner and Mike Gordon.


Source link

Share.

About Author

Comments are closed.