Chinese investment giant Everbright and sovereign wealth fund China Investment Corporation (CIC) are targeting Liverpool FC with an offer that values the club at 800 million pounds, according to multiple reports, though the current owners deny an approach has been made and say the club is not for sale.
The Sunday Times reported that Everbright was leading a bid that would be largely financed by CIC, while the Financial Times wrote Monday that Liverpool's American owners Fenway Sports Group (FSG) are using their financial advisers to analyse an unsolicited approach for a "substantial stake" in the club.
A senior Liverpool official who requested anonymity confirmed to China Daily the club's position that there are no active discussions and no bid. He reiterated Chairman Tom Werner's stance that the club was not for sale, though FSG does not rule out the possibility of fielding offers of investment for a minority stake in the club.
"Under the right conditions and absolutely with the right partner, we could look at some small investment stake in the club," Werner told the Liverpool Echo on Friday. "But only in the framework of doing what would be in the club's long-term best interests. I want to reiterate that the club is not for sale."
Werner and principal owner John Henry — who bought the club for ￡300 million in 2010 — are believed to be committed to the Liverpool project. FSG has invested in the stadium, expanding Anfield by 8,500 seats to a 54,000 capacity, generating ￡25 million more per season.
Last month, the owners confirmed a six-year contract extension for highly-rated manager Jurgen Klopp, entrusting him to return Liverpool to its former glory. The Northern club is the second most decorated club in England, though the side secured its last league title in 1990 and its last major silverware, the League Cup, in 2012.
Liverpool is the ninth richest club in Europe and generated just under 392 million euros last year, according to Deloitte, though Premier League competitors Arsenal, Chelsea, Manchester City, and Manchester United all stand in front of the club in terms of wealth.
Significant investment would go a long way in helping Liverpool compete with its rich rivals, and financial backing from Everbright and CIC would eclipse the Qatari funds available to Manchester City and position Liverpool among the wealthiest teams in Europe. CIC's assets are estimated at ￡620 billion while Everbright controls an estimated ￡7 billion in assets.
According to The Times, Amanda Staveley, who helped broker Sheikh Mansour's capture of Manchester City in 2008, is involved with the Chinese bid that would form a new ownership group including Everbright, John Henry, and possibly Staveley herself. Henry could potentially maintain a majority stake in the club.
Everbright has already invested heavily in the European sports industry this years. In May, the Shanghai Jinxin Investment Fund, a partnership between Beijing Baofeng Technology Co Ltd and Chinese financial services company Everbright Securities Co Ltd, announced an agreement to acquire a 65-percent stake in Italian-owned MP & Silva Ltd, the world's number one soccer rights agency, for around $1 billion. MP & Silva distributes sports programming to more than 200 broadcasters in 215 countries, including the English Premier League and Formula One motor racing.
"China owns billions of sports fans and its sports industry has been one of the hottest investments recently," Xue Feng, CEO of Everbright Securities said of the deal. "We hope to seize the unprecedented opportunities brought by the rapid development of the sports industry in China."
Chinese millions have poured into European football since President Xi Jinping announced his intent to transform China into a footballing superpower and to create a $850 billion domestic sports industry by 2025.
On August 5, a Chinese consortium signed a preliminary deal for a 99.93 percent stake of AC Milan. The agreement values AC Milan at 740 million euros ($825 million), including an estimated debt of approximately 220 million euros. Over the last two years, Chinese investors have purchased stakes in Inter Milan, Atletico Madrid, Espanyol, Manchester City, Aston Villa, Wolverhampton Wanderers, and West Bromwich Albion among others.
