Fenway Sports Group rarely makes public pronouncements. When they do, it usually involves major modifications.
Liverpool is already a step ahead of its opponents, and Michael Edwards hinted at something even bigger for FSG. Just a few months ago, it seems unlikely that he would be back in control of Liverpool.
When Jürgen Klopp chose to step down as manager at the end of the season, fans were naturally concerned about what would come next. Few believed that Edwards might return to play a role.
During his debut season with Liverpool, he contributed significantly to the club’s Premier League and Champions League victories. However, Edwards made it obvious that he did not want to return as sporting director only two years after departing.
Real Madrid, Manchester United, and Chelsea all sought him at different periods during his time away from Liverpool. Chelsea was notably interested, with the owners eager to let him oversee the entire football department.
FSG is always open to new ideas, and Edwards traveled to Boston to explore a newly created CEO of Football position. This post will see him effectively succeed FSG president Mike Gordon, Klopp’s closest boardroom partner at Liverpool.
One critical component of this strategy is the acquisition of another football club. It remains to be seen whether this will lead to a more widespread multi-club approach.
As Edwards stated, “One of the most important elements in my selection is the promise to acquire and manage an extra club. I feel that in order to remain competitive, we must invest in and expand our current football portfolio.”
This announcement makes it obvious what FSG’s next steps are. However, this was probably not the main priority before Klopp decided to depart, and the club did not require a big revamp.
Instead of replacing like-for-like, which can only go so far before leaving you with a diminished talent pool, FSG is attempting to carve a new route. This makes sense.
It is up to you to decide how you feel about ownership groups owning a majority stake in many clubs. Some people may dislike the idea of purchasing clubs with long histories and converting them into feeder clubs for higher-level teams.
However, Tony Bloom, the owner of Brighton and Hove Albion, would likely argue that Union Saint-Gilloise, the Belgian team he also owns, is performing better than ever. And he’d be correct.
Union Saint-Gilloise has been a huge aid to Brighton, allowing talented players to go from lower leagues to the Premier League. Kaoru Mitoma is an excellent illustration of this.
And the way Brighton operates has obviously been discussed in Boston. Remember last summer?
Liverpool intended to spend $142 million (£111 million/€130 million) on Moisés Caicedo, a player who had cost only $5.8 million (£4.5 million/€5.3 million) two years prior and had little experience. This was not what FSG, Liverpool’s owners, typically did.
They want to unearth hidden gems rather than overpay for players that other teams have found. This is more Chelsea’s style.
Maybe missing out on Caicedo was a good thing, or maybe he’ll be the greatest player of all time. Who knows. Wataru Endō, a 30-year-old unheralded midfielder, appears to be the ideal fit for Liverpool.
But let us get back to the point. According to what FSG and Edwards have said, Liverpool is implementing a new strategy.
It will work alongside its predecessor to assist the club establish a bright future in a fast-changing football landscape. And it appears that Liverpool is ahead of many of its opponents.
Liverpool’s ownership story dominated late 2022 and much of 2023. Everyone was asking, “Is FSG selling?” Who are they selling to? Why were FSG executives seen with the head of the Qatar Investment Authority on Bold Street during a night out at Cheers Big Ears?
Of course, that last story was false, as was the majority of the social media talk at the time. Liverpool was open to considering offers for the club, mostly to determine its current market value, which it hadn’t done in a while. It preferred to bring in a minority partner because the price was not prohibitively expensive.
According to an investment proposal obtained by the ECHO last year, FSG valued the club at $5.4 billion (£4.2 billion/€4.9 billion). They predict it might treble by 2030.
So, why sell now? Why not work to raise the value of an existing successful business?
FSG is known for their meticulous financial management, which some fans do not appreciate. However, the true worth is not reflected in the annual earnings or losses.
Who cares if you make a £7 million profit one year and lose £9 million the next when you have nearly £600 million in revenues? The true value is realized when it’s time to sell, which won’t happen anytime soon.
However, in order to achieve true value, football clubs must be well-managed. Spending a lot of money on the transfer market may make certain social media fans pleased, but it does not ensure success.
There are too many factors that can influence that. Simply ask Manchester United and Chelsea. Simply ask Caicedo.
FSG has been busy lately, preparing for what comes next. Since 2021, they’ve been discussing ‘FSG 3.0′ and what the following ten years and beyond would be like.
Liverpool is still an important element of that plan, and giving Edwards additional responsibility demonstrates their commitment. They might have found a cheaper candidate, and there would have been a lot more competition for the position of sporting director.
However, in order to retain Edwards, they have allowed him to take the lead on football things. That will cost them as much as it would to acquire another football club, which they would have to carefully manage. That demonstrates their commitment to Edwards and Liverpool’s future.
Ideally, football supporters would not want to spend so much time debating about who runs their team. They’d rather it be steady and have the opportunity to grow and develop.
However, there are numerous examples of poor ownership in football, and even Liverpool’s owners, FSG, have made blunders. They were part of the European Super League proposal, which was not well received.
However, football will see significant changes during the next ten years. Financial constraints are becoming more effective, and the TV broadcast rights bubble will not last forever. FSG appears to be in an advantageous position.
No new owners will be allowed to come in and spend large sums of money to make their team the greatest. It just won’t happen.
Owners that plan ahead and collaborate will perform well. That’s why Sir Jim Ratcliffe is attempting to implement the same strategies at Manchester United that succeeded at Liverpool.
He wants to do better by spending less money. Chelsea wants to do the same thing, despite Caicedo and the rest of the transfer splurge indicating otherwise. They engaged several bright guys from Brighton to assist them.
However, it is about more than simply one person. It’s all about having a good plan.
Klopp has contributed significantly to Liverpool’s success. He’s very crucial. However, Liverpool is not looking for someone exactly like him to take over when he leaves. It cannot.
FSG must hunt for the appropriate individual to continue improving Liverpool. They realize they have a fantastic strategy and are looking for someone who can make the most of it.
The benefit of having steady leadership is obvious. Henry, Gordon, Werner, and co. don’t need frequent plaudits; they are billionaires who will only benefit from Liverpool’s success. However, this is true for almost all major sports team owners around the world.
What is not the same for everyone is having owners who make decisions that help the team on the field, ensuring that the club is prepared to face the numerous problems that football, the economy, and life can present. Consider the Glazers’ absentee ownership and the long-standing lack of a capable sporting director and plan.
They spent hundreds of millions more than Liverpool but accomplished significantly less. The two are not necessarily connected.
FSG are here to stay for a while longer. Not everyone will be pleased, but Edwards’ appointment implies far more than simply reintroducing a well-known personality. It might be the catalyst for what FSG’s football strategy with Liverpool at the helm will look like in the future, as the owners strive to stay one step ahead.
According to Liverpool.com, the Caicedo proposal was unusual for FSG, even if it failed. However, it is becoming increasingly difficult to wait for players to show themselves in Europe while still getting them at a reasonable price.
Liverpool is unlikely to make such lavish bids on a regular basis, but it will need to adjust in order to remain competitive. Edwards appears to be the ideal candidate to lead that transition, and the plan is beginning to take shape – yet if not executed flawlessly, a multi-club model may leave a bad taste in the mouth.
