Chinese ready to pounce on Liverpool FC
An investment fund backed by the Chinese government and leading City dealmaker Amanda Staveley is close to grabbing a large stake in Liverpool Football Club.
The deal, which could be sealed in the coming weeks, is understood to value the Merseyside giant at about £800m. It would significantly bolster the club’s finances, enabling it to buy in star players.
China Everbright, a state-backed financial conglomerate, is spearheading the approach. However, the bulk of the cash is expected to come from China Investment Corporation (CIC), the country’s main sovereign wealth fund, according to senior football and City sources.
Staveley — who engineered an emergency £7bn fundraising for Barclays from Middle Eastern investors during the financial crisis — is brokering the deal between CIC and Fenway Sports, the American owner of Liverpool. Staveley could plough some cash into the deal. Fenway has hired Allen & Company, a US boutique investment bank, to advise it on the talks.
...
Entrepreneurs from China have also been targeting English football clubs in recent months, as the new £1.7bn-a-season TV rights deal kicks in. West Bromwich Albion recently fell into Chinese hands, joining fellow Midlands clubs Aston Villa and Wolverhampton Wanderers.
It is unclear whether the owner of Liverpool is willing to sell the entire club to the Chinese. Tom Werner, chairman of the club and a big shareholder in Fenway, said on Friday that the club was “not for sale”, although he admitted that it was open to the idea of selling a minority stake.
It is thought that under the current plan, Liverpool would be taken over by a new investment vehicle, sources said. It would be backed by Everbright, the American tycoon John Henry — the club’s dominant shareholder — and, potentially, Staveley’s PCP.
However, Henry and the Chinese are still thrashing out financial terms, meaning the talks could extend beyond the end of the month. Henry may yet retain a controlling stake, with the Chinese taking a minority holding.