Liverpool owner Fenway Sports Group (FSG) could become a £100 billion company once it completes its latest deal. That was the verdict given by former Crystal Palace owner Simon Jordan on talkSPORT earlier this week. FSG partnered with several business leaders and investment firms to form the Strategic Sports Group (SSG) to invest in the PGA Tour. It includes MLB team owner Tom Ricketts, Chicago Cubs and Jerry Cardinale, whose Red Bird Capital Partners bought an 11% stake in FSG in April 2021.
The PGA has also discussed a possible merger with Saudi Arabia’s LIV Golf (which recently bought Jon Rahm for £450m) since last summer. In addition to owning Liverpool since 2010, FSG also operates MLB’s Boston Red Sox and NHL’s Pittsburgh Penguins, and has also acquired franchises in the newly formed Tech Golf League called Boston Common.
Jordan believes that FSG’s interest in PGA is related to media rights, which will significantly increase the company’s value. He said: “There is no disputing the strength and economic power of the £650 billion sovereign wealth fund. In order to have a conversation, you need to offer yourself a variety of acceptable alternatives that will allow you to gain some ground in the conversation. Otherwise you will get what you are given.”[It’s] a big media game. If they want to own golf media rights, look at what Fenway did when Red Bird sold part of Liverpool and its capital. If you start protecting the media rights of other sports, you could suddenly have a £100 billion business. “You’re talking about the idea of a golfer getting $450 million and being funded by an administration that has no interest in his economic survival. The PGA is committed to operating a profitable tour. It all depends on how willing Saudi Arabia is to allow the value of the gulf to become unstable. In any case, it means not only the economic environment that needs to be rebuilt, but also the principles of the majors, such as playing in them or hosting the now withdrawn Ryder Cup. This is not considered a great achievement in the golf world.“The game of golf is about assimilating the different values of the tournaments you play, and it’s not difficult to find opportunities to combine different tournaments. The point is, if the US government said, “Easy cowboy, we’re not going to do this, and this deal is done.
” The PGA recognized that they were going to get what they got, that by working with the Saudis, their economic power was something they needed to use and could be used to their advantage, and they could see the challenges ahead.”But there is no fighting here. The reason Henry and his men are involved is because they see a media opportunity. Sports media rights are huge and the PGA could have more money to invest. If you can give star players £250-300m to play in the PGA, where is LIV all of a sudden? LIV will reach £1 billion.
Asked what effect the PGA deal would have on Liverpool, Jordan said: “Nothing. How much will Liverpool spend? They keep the money. John Henry is not a big spender. Klopp sold Coutinho and built the best team. They are usually very frugal in spending. “But if you integrate it into the media structure and make it a public company and then value it at 50 times earnings, you can create more opportunities.”
