The Qatar Investment Authority (QIA) did not bid for a stake in Liverpool Football Club because they believed Fenway Sports Group’s (FSG) valuation model for the club was inaccurate, according to reports from Football Insider.
In November 2022, FSG announced their plans to seek external investment in Liverpool, either in the form of a full or partial takeover, valuing the club at around £4 billion.However, it now appears that the Boston-based group is looking to offload a minority stake but still values the club at the same price. This isn’t far off the £4.5 billion the Glazer family expects to receive when they select their successors at Manchester United.The QIA were among the favorites to seal a deal with Liverpool, but they are now focusing on United. Meanwhile, another Qatari investment offer in Man United has been made by Sheikh Jassim Bin Hamad Al Thani, the chairman of one of Qatari banks, QIB.
Vivaswan Mukherjee, a chartered accountant and valuations expert, believes that FSG may have used the wrong metric to evaluate the club’s value. According to Mukherjee, QIA likely declined to bid for a stake in Liverpool because of the valuation model employed by FSG, which they consider inaccurate.Speaking exclusively to Football Insider, Mukherjee said:
“Using the Markham Multivariate Model, the best model for valuing clubs, you arrive at a valuation of about £1.2bn. That seems low, although it could be that investors think other valuations are overpriced given the relatively low year-on-year profits that clubs generate.’
“The Glazers value United at around the £6-7bn mark, but most interested parties are believed to be offering around £4.5bn. United have greater revenue and, while Liverpool have a fantastic history, a stronger brand than their rivals. I’d conclude from this that investors probably value Liverpool around £3-3.5bn. But the market doesn’t think they are worth that.
The sovereign wealth fund’s decision not to bid for a stake in Liverpool will be a significant blow to FSG’s plans for the club, as QIA is one of the wealthiest sovereign wealth funds in the world. With the current focus on Manchester United, it is uncertain if they will reconsider investing in Liverpool.
”Please help us out brother” – Liverpool fans ask Qatar World Cup chief Hassan Al-Thawadi to buy majority stake in their club
Liverpool fans are calling on Qatar World Cup chief Hassan Al-Thawadi to purchase a majority stake in their club.
As Liverpool struggle in the ongoing English Premier League season, fans are seeking a change in ownership. Al-Thawadi has been open about his love for the club and its manager, Jurgen Klopp.His potential takeover of Liverpool would be groundbreaking, as it would mark a major investment in one of the most successful clubs in England.