How FSG’s minority sale will mean more money for Liverpool’s transfer budget

Fenway Sports Group's (FSG) decision to sell a minority stake in Liverpool will mean there's a larger transfer kitty in the future - as interest costs will be reduced. That is according to football finance expert Kieran Maguire, after FSG's search for a new partner finally came to an end last week.

Having been searching for investment since last November, the Reds' owners announced that Dynasty Equity had completed a strategic common equity minority investment. The deal is worth between £82-164 million and will go towards paying off debts incurred during the Covid-19 pandemic, capital expenditure on the new Anfield Road stand, the AXA Training Centre and repurchase of Melwood.

Liverpool manager Jurgen Klopp revealed the investment was 'great news' although the funds won't directly be injected into his transfer budget. But Maguire, speaking to Football Insider, explained how it will have a long-term benefit for the Reds supremo.

He said: “You can see the benefit from FSG’s point of view. They’ve got control over the operational and strategic direction of the club, but they’ve generated some short-term cash. If that is used to pay down debt, then that reduces your interest costs, which means there’s more money for the transfer budget and for the wage budget and so on.

FSG have traditionally kept on top of any debt at Anfield during their ownership. I think they wanted to address this particular issue this summer. So from their point of view, it’s mission accomplished and they’ll be delighted with the announcement.”