Liverpool: Finance guru reveals what £3bn news means for Anfield redevelopment
The financial might of the Boston Red Sox makes it easier for Liverpool to afford big-money projects such as the current Anfield revamp.
That is the view of finance guru Doctor Dan Plumley, speaking exclusively to Football Insider about Fenway Sports Group’s investment portfolio.
FSG own both the Red Sox and Liverpool, as well as NHL outfit the Pittsburgh Penguins.
Annual analysis published by Forbes last Thursday (24 March) shows that the Red Sox are currently the third-most valuable MLB side at £2.96billion.
The Red Sox were the only outfit in the top three to record a positive operating income as their value soared by £333m on last year.
Liverpool meanwhile have begun the redevelopment of the Anfield Road stand that will boost capacity at the stadium by 7,000.
Plumley explained why the strength of FSG’s other business interests makes capital investment projects more viable.
“We often talk about clubs being reliant on owners,” the Sheffield Hallam University expert told Football Insider‘s Adam Williams.
“But we also have to factor in that the owners are reliant on other investments to continue doing well so they can support the club.
“Liverpool are generating enough revenue to sustain themselves. But it helps things like capital investment projects when the portfolio is strong.
“There has been talk about more development at Anfield, for example.
“There is also the reputational aspect. If all your businesses are firing, you insulate yourself from bad press. There are a lot of things tied up in this.
“They aren’t as reliant on the owners as some other clubs, but it is a major help if the portfolio is strong.
“The American owners want strong franchises. They have invested in English football because they can see strong brand propositions.”
Liverpool posted a £4.8m loss in their latest set of annual accounts.
Jurgen Klopp’s side are currently 2nd in the Premier League and face Watford on Saturday (2 April).
In other news, Liverpool reach “agreement in principle” to sign Fabio Carvalho