Fenway Sports Group, the ownership group of Liverpool, has ended talks to sell a 25% stake of their company to RedBall Acquisition Corp.
American outlet Axios report that RedBall could not raise enough outside capital and thus could not meet Fenway Sports Group’s asking price.
Redball Acquisition is lead by Moneyball star and former Major League Baseball player and general manager, Billy Beane.
Redball’s 25% stake of Fenway Sports Group was said to be purchased at an $8 Billion valuation (£5,851,600,000).
Since the news of a potential investment broke in October, RedBall Acquisition Corp has been searching for $950 million (£694,877,500). RedBall was hoping this money could be raised from a private equity firm and outside investors.
However, they have fallen short in their pursuits. This lead to the news being reported that talks have shut down.
As a result of this, Liverpool will not be publicly traded. This seems to be one of the biggest reasons as to why the deal fell through.
I say this, because Fenway Sports Group is still looking for a private investment deal. However, this investment would not result in an immediate public stock listing.
Billy Beane’s partner at RedBall, Gerry Cardinale, is still hoping to negotiate a deal with his private equity firm RedBird Capital Partners.
What this means for Liverpool is yet to be seen. Would it result in an influx of cash? Or would things not change at all?
One thing that is for sure, now more than ever, is that Fenway Sports Group and Liverpool owner John Henry are open to investors.