Former FSG ally makes nation-state ownership claim amid Liverpool sale process

Former Liverpool chairman Sir Martin Broughton believes that state nations owning football clubs is 'philosophically' better than private equity funds.

Broughton helped broker the deal when Fenway Sports Group (FSG) purchased the Reds from much-maligned pair Tom Hicks and George Gillett in 2010.

FSG put Liverpool up for sale four months ago, with principal owner John Henry confirming the club are seeking investment rather than a complete takeover.

Several parties have been linked with the Anfield outfit. They stem from Qatar, Saudi Arabia and Dubai to America and Germany.

And Broughton, speaking to the BBC, believes that how nation-states run clubs - on low debt and invest in higher equity - is why he has fewer concerns than private equity firms. He said: "Private equity is an unsuitable owner of sports teams.

"The US doesn't let them buy any sports franchise. The standard operating procedure is buy with as little equity and as much leverage as possible, get your equity back as quickly as possible through dividends, then flip it as soon as there is a good profit.

"Nothing wrong with that process in other industries, but it is so far from what the fan wants. Football clubs are community entities. They are emotional assets. The fans want equity and no debt. Nation states are more appropriate. They take a longer-term view, tend to invest on higher equity, lower debt basis and don't have a need-to-sell time frame.

"People might not like the particular nation-state, but philosophically, I have less concern with a nation-state owning something than private equity."