‘Don’t expect Kylian Mbappe to rock up at Anfield!’ – What 1892 Holdings’ 1.65 billion investment in Liverpool means for the fans, FSG, Jeff Bezos and Amit Bhatia
Of course, the Premier League is already flush with American investment and it could simply be a case of Bezos wanting in on the action.
“After the major American sports, the Premier League has unquestionably become the next port of call for American investors,” Robinson says. “We now have American interest in 11 of the 20 clubs, which is staggering when you consider that there hadn’t been an American owner before the Glazers took over Manchester United in 2003.
“But the Premier League has become incredibly attractive to investors because of its popularity, and the lure and legacy of these clubs is wrapped up in a level of authenticity that is highly marketable to American and global audiences.
“So, while the consortium is paying a lot of money for its minority stake, that’s what it costs now to gain access to the cash cow that is the Premier League.
“It should be pointed out that you don’t make a massive operational profit while running the club, because so much of that money goes on players. In fact, you basically burn through it in the transfer market by paying massive fees and salaries.
“However, it does give you a chance to participate in the Premier League, which is simply unbeatable when it comes to global reach. You’re in 195 countries every single weekend and that is unparalleled in sports.
“I think that all the American investors in the Premier League also all believe that, in the long term, the value of these TV deals is going to continue to increase. So, if this is a financial play, then it’s a medium-to-long-term strategy because when you do sell, you end up making multiple times what you originally paid for the club.
“Club and franchise valuations are continuing to grow across sports. Just the past week we saw the price paid for the LA Lakers ($12.5bn), which is insane. They have more predictable profits because, in the NBA, as with other American sports, there’s no threat of relegation or missing out on Europe.
“But Liverpool is Liverpool. It’s an incredibly famous football club and all of the heavy lifting has already been done by FSG in terms of investing in the ground and the squad, and to such an extent that major titles have been won. In that sense, they’re something of a modern success story, and with a far greater reach than the Lakers. Just look at their respective social media followers and you’ll see the difference in terms of global appeal.
“So, I really don’t think the prestige angle should be underestimated here. Not a lot of people buy into an English club to try to turn it around for a quick profit. For some American investors, these clubs are viewed as trophy assets and, as trophy assets go, they don’t come much bigger than Liverpool.”