American businessman makes ambitions crystal clear after striking Liverpool and FSG deal

A private equity company who purchased a minority stake in Liverpool have insisted they are just getting started in sports investment.

Fenway Sports Group (FSG) ended an almost year-long search for fresh capital in the Reds when they brokered a deal with Dynasty Equity last September worth between £80-160 million. Dynasty's transaction with FSG was their first since being founded by Jonathan Nelson and K. Don Cornwell.

Sports investments have been increasing markedly since the Covid-19 pandemic, with nine Premier League clubs owners by Americans. That will become 10 should 777 Partners' Everton takeover go through. Meanwhile, NFL team the Washington Commanders were last year purchased for $6.05 billion - the highest fee for a sports team in history.

It is thought that broadcasting rights are what prove attractive and women's sports, along with upcoming sports, are on the rise. In June, FSG purchased a franchise in the newly-formed Technology Golf League while partner of the Boston-based group LeBron James owns a stake in a Major League Pickleball team.

Cornwell, speaking to Private Equity News - via Financial News London - surveyed the landscape and believes more sports deals will be agreed. He said: “The challenge for the sports world is how do you manage both (traditional broadcasting and new models) parties? How do you have them work together and create content that works for all delivery systems?

“That creates opportunities for investors who see opportunity to help teams and leagues navigate through a complicated ecosystem with real upside. For both women’s sports and more emerging sports, you can create a business plan where you can get to profitability.

“It used to be dependent on one thing and one thing only: Can I get a TV deal from a cable provider or broadcast network? Now lots of entrepreneurs are saying to themselves that they can probably figure out a way to get content out there using technology.

"We’re just in the first innings of private equity in sport.”

After purchasing a minority stake in Liverpool - with the funds used to pay down bank debt incurred during the Covid pandemic along with the investments in Anfield, the AXA Training Centre, repurchase of the historic Melwood training ground and signings during the summer transfer window - Cornwell said: “Liverpool is one of the most iconic football clubs in the world with a passionate fanbase and significant global reach. Dynasty is privileged to support the club and work alongside FSG to execute on the tremendous growth opportunities ahead.”