Liverpool land FFP boost as finance expert explains key advantage over Man Utd

Fenway Sports Group's (FSG) decision to sell a minority stake in Liverpool will give the club a boost when it comes to financial fair play.

The Reds' owners agreed a strategic common equity minority investment deal with Dynasty Equity at the end of the month woth between £80-160 million. FSG had been seeking to sell a share of Liverpool since November 2022, with their search now complete.

The funds will go towards paying debts and capital expenses such as the expansion of Anfield and not into Jurgen Klopp's transfer kitty. But it will have a positive impact on the deals that Liverpool can complete in the future.

According to football finance expert Kieran Maguire, a lecturer at the University of Liverpool, new shares will be issued to Dynasty. And that will help with FFP, with Manchester United's budget being capped because of the rule during the summer transfer window.

“Speaking on his podcast The Price of Football, Maguire said: "It's between £80-160 million. If this is in the form of fresh shares, because it's an equity investment which is going towards the club, it contributes to FFP. Whereas if Sir Jim Ratcliffe is buying shares from the Glazers (who have Man Utd up for sale), that doesn't contribute to FFP and Manchester United's next transfer window will be quite constrained.

“There are two ways of buying shares in a company. Let's say you (host of the podcast Kevin Day) own 100 shares in Crystal Palace and decide to sell them to me. If I pay you £1000, I now own 100 shares in Crystal Palace - [it] completely bypasses the club. So the club doesn't benefit financially, no benefit for FFP. Whereas here, Liverpool Football Club are going to physically issue shares to Dynasty Equity and therefore Liverpool receive the cash and equity injections contribute to FFP.”