The reason why Qatar Investment Authority gave up on Liverpool takeover
Liverpool has reached a stage when adjustments are necessary at practically every level. The team requires new players, and the club requires new partners, if not even new owners, to spearhead the long-term initiative.
The club’s current owners, Fenway Sports Group, have come under fire in recent months as the team has battled to retain its status while offering little to nothing in response.
FSG declared months ago that they are open to accepting new shareholders, amid rumors that the group is considering selling the club. Since the announcement, reports of numerous possible bidders from across the world, particularly and most notably from the Middle East, being interested in the takeover has continued to make headlines nearly daily.
Qatar Investment Authority (QIA), which indirectly owns Paris Saint-Germain through its subsidiary business Qatar Sports Investment, was claimed to be one of the most notable parties rumored to be interested in the purchase.
The investment fund was interested in acquiring a controlling stake in the club’s ownership and met with FSG to examine the possibility of a deal. Alex Miller, a sports writer, claims that QIA has since “moved on” from Liverpool, with more explanations provided as to why.
QIA decided not to invest in Liverpool due to two major reasons
According to Football Insider, the Qatar-based investment authority’s key reason for abandoning Liverpool was the club’s valuation by FSG. The party argues that the existing owners’ valuation formula is flawed and overvalues the Merseyside club’s assets.
According to an expert with whom the site spoke, using the relevant matrices, Liverpool’s valuation is roughly 1.2 billion pounds, but FSG’s offer is over 300% of that, at around 4 billion pounds.
Another reason QIA rejected FSG’s offer is that they believe investing in Manchester United would be more profitable to them since the club has greater commercial potential than Liverpool.
The analyst claims that when compared to Liverpool’s records, the Manchester-based team has quite excellent revenue-generating data.
QIA has been equally interested in investing in United and Liverpool since the beginning, and it now appears that they have two compelling reasons to choose the former over the latter.
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As we speak, the party is getting closer to investing in United. The fascination with Liverpool is almost ended.