Why FSG is open to Liverpool sale as Jeff Bezos warned over $6bn valuation

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Liverpool's ownership structure could be set for a huge change in the near future, as a consortium led by Amit Bhatia is in talks to purchase a significant minority stake in the clubFSG is open to selling a stake in Liverpool as talks continue over a 30 percent sale(Image: (Photo by Carl Recine/Getty Images))Fenway Sports Group could be set to cash-in on their investment of Liverpool, as talks are ongoing over the sale of a significant minority stake in the Merseyside club.It comes after 15 years of association as owners, with FSG agreeing to buy the Reds in October 2010 from Hicks and Gillett in a period of the club's history that was particularly rocky.In the years since, the American sports investment conglomerate has faced a mixture of criticism and praise, as Liverpool went from underachievers to leaders on the world soccer stage, following a process of transforming the processes off the pitch that reflected in performances on it.Under Jurgen Klopp, FSG oversaw its best years as owners, while there has been some success since under Arne Slot as well as a lot of uncertainty that has followed.Following reports and a statement from FSG revealing the talks to sell the significant minority stake, there have been questions about the decision and the timing in particular.Liverpool.com spoke to football finance expert Adam Williams, who explained exactly why the American owners may be considering a sale of the stake, but not the whole club yet.FSG is in talks to sell a significant minority share in Liverpool(Image: (Photo by Michael Regan/Getty Images/Getty Images For The Premier League))He said: "We're really asking two questions here: One, why do FSG want to divest, and two, why now? In terms of why FSG would be interested in selling a large minority stake, I think it's pretty simple: they want to realize some of the value of their investment."To date, they have invested the initial £300 million ($401.5 million) purchase price, plus another £300 million ($401.5 million) or so in share capital and loans.

So they are about £550 million ($736.2 million) deep into the investment all told, plus they have dedicated countless man-hours to the project."If they sell 30 percent at a $6bn valuation, they have suddenly got a profit of £800 million ($1.1 billion) or so. And honestly, this is a topic you could write a PhD thesis on."There have been whispers in the sports finance business for some time that FSG is looking to exit team sport altogether, they have certainly flirted with selling Liverpool outright in the past, as we know.

But with Liverpool, we don't really have to get too technical about why you might want to get out."When you're valuing a business, you're looking primarily at future cash flows. Changes in head coach and coaching teams have happened, followed by a large turnover of players in the past few years, which has underlined the state of flux the club is in.Follow that with the changes at board level, with Michael Edwards recently leaving following the collapse of the multi-club model, and the expected exit of Richard Hughes as sporting director in the next year, and it all culminates in a place where transition isn't smooth.FSG's potential sale of a stake adds yet more parties with their own vested interest into the club's investment structure, though the owners won't be leaving in total.