Liverpool may follow in the footsteps of Manchester United in attempting to become a publicly listed company.
That is according to finance guru and Football Insider columnist Kieran Maguire, speaking exclusively amid RedBird Capital’s reported interest in buying a 10 per cent stake in Fenway Sports Group, the conglomerate that owns Liverpool F.C.
The deal was first documented by Sportico, who report that RedBird are expected to pay approximately £530million for the shares in FSG, who also own Boston Red Sox.
The mooted deal comes after Football Insider revealed that Liverpool expect revenues to drop off by around nine per cent to below the £500m mark.
Maguire explains that one of the most significant knock-on effects of the deal would be that Liverpool could become a plc floated on the stock exchange.
He told Football Insider correspondent Adam Williams: “If it does go ahead or if a similar investment goes ahead, what we could see is Liverpool potentially being listed on the stock exchange and its shares traded in a similar manner to that of Manchester United.
“There’s a minimum revenue threshold but Liverpool will walk through that. There must also be a certain percentage of the available shares available for purchase.
“They’d also have to put through a sale document, a prospective, effectively, that says: ‘This is the club, this is what you’re buying, this is why we think you should buy it.’
“It will then be subject to stock market scrutiny and stock market listed company rules. In the UK, you have to publish results twice a year. Or, if you’re quoted on the New York Stock Exchange, four times a year.
“So there are significant compliance costs. And there is an expectation that at some point the club will begin to make profits and then pay dividends out of those.
“We’ve seen that Manchester United [plc] are paying out around £22m a year. That’s £22m a year that’s coming out of the playing budget.”
On the pitch, the picture does not look good for Liverpool who are 7th in the league having taken 12 points from the last 39 available.
Their efforts are now focused on making up a four-point gap on Chelsea in 4th and continuing their progress in the Champions League.