Bezos-backed 1892 Holdings buys about 38% of Liverpool, deal includes option to buy controlling stake
A Jeff Bezos-backed consortium, 1892 Holdings, agreed to buy about 38% of Liverpool from Fenway Sports Group, a transaction revealed on Tuesday. The announcement has prompted questions over whether the move is a minority investment or the first stage of a potential takeover.
Initial reporting produced differing figures, with BBC Sport told earlier that speculation placing the investment at roughly 30% to one-third was "directionally accurate"; FSG normally does not disclose precise ownership percentages. After media numbers circulated before Friday’s official announcement, FSG aimed to give a sense of scale rather than simply calling the deal a "minority investment"; when the stake was later reported as closer to 40% some perceived the club had downplayed the size of the purchase. FSG said it did not intend to create a misleading impression and that its guidance responded to media reports on both the range of the investment and Jeff Bezos' involvement, but the chain of events has left some at Liverpool privately asking why the group was not more transparent.
The 1892 Holdings group is led by British-Indian businessman Amit Bhatia and includes Facebook co-founder Eduardo Saverin; Jeff Bezos is backing the consortium through K5 Sports. Bezos, described in the announcement as the fourth-richest person in the world with an estimated net worth of $256bn (£192bn), will not join Liverpool's board. Bryan Baum, Bezos' business partner and founder of K5 Sports, will join the Anfield board, alongside Saverin's wife Elaine, and Bhatia will take a role on Liverpool's board as the club's vice-chairman.
BBC Sport reported the agreement initially included an option for the consortium to increase its investment; four days later it was learned the deal contains a specific option allowing the consortium to buy a controlling stake in the next 12 months. "There is an option that would allow 1892 Holdings to become majority owners within a year, though that does not involve a formal commitment," the report said. The inclusion of such an option has prompted questions about FSG's long-term vision for Liverpool.
Jay McKenna, chair of the supporters union Spirit of Shankly, told the Liverpool Echo: "One of the questions we will be asking is that we have been led to understand this change of ownership is guaranteed. We want to understand that and want to put it to FSG and the new owners. "If we were told that the investors don't have the right to [complete a full takeover] or if it's just an option, and then next summer the club gets sold, then we will want to know why we weren't told." The comments reflect supporters' desire for clarity on the precise rights included in the agreement.
FSG bought Liverpool for £300m in 2010 at a time when, according to current CEO Billy Hogan, the club was "literally on the brink of bankruptcy". The deal with 1892 Holdings is said to value the club between £5bn and £6bn, meaning the club is worth more than 15 times its value in 2010. Football finance expert Kieran Maguire told BBC Sport: "It's a great deal for FSG. They generate more than £1bn from the deal and still keep control - this represents the best of both worlds."
BBC Sport was told the stated motivation behind the sale was to extend Liverpool's reach across global business, technology and investment, including in India and across Asia, rather than purely for investment purposes. FSG expects the effects of the partnership to be seen across the coming months, but the same period also looks set to bring uncertainty and speculation as to who will be running the club next summer.
There is a contractual option that would allow 1892 Holdings to become majority owners within a year, and that clause is likely to be central to forthcoming questions about control of the club and who will be running Liverpool next summer.
