The Unlikely Financial Connection Between Premier League Rivals
When Liverpool and Manchester City face off this Sunday, one of English football's most intriguing ownership connections will be on display behind the scenes. Despite the fierce rivalry that has defined the Premier League for the past decade, the two clubs share a financial link that reveals the complex nature of modern football ownership.
Sheikh Mansour, owner of Manchester City, sanctioned a substantial $750 million investment through his International Media Investments (IMI) into RedBird Capital Partners in 2023. This move created a significant connection between the clubs, as RedBird holds an 11% stake in Fenway Sports Group, the principal owners of Liverpool.
The RedBird Connection: More Than Just Football
RedBird Capital Partners, founded by New York financier Gerry Cardinale in 2014, purchased its 11% share in FSG during 2021. This investment came at a crucial time for Liverpool's owners, who were seeking to offset losses sustained during the COVID-19 pandemic. Some of these funds reportedly contributed to the £80 million redevelopment of Liverpool's Anfield Road Stand.
The IMI investment formed part of a larger $2.5 billion fundraising initiative that prompted RedBird to rename its fund to RedBird IMI. This specialised fund focuses specifically on sport and media mergers and acquisitions, demonstrating the strategic nature of Mansour's investment.
RedBird's sports portfolio extends well beyond English football, including French club Toulouse, Italian giants AC Milan, and various investments in ice hockey through FSG's acquisition of the Pittsburgh Penguins for $950 million.
No Direct Influence But Growing Complexity
Sources close to both clubs have been quick to emphasise that Mansour's investment does not translate to direct influence at Anfield. With IMI owning less than a third of RedBird Capital's subsidiary funds, the connection remains several steps removed from day-to-day operations at Liverpool.
One insider compared the situation to Chelsea's ownership structure, where Clearlake Capital receives significant funding from Saudi Arabia's Public Investment Fund, which also owns Newcastle United.
The landscape of football ownership is becoming increasingly interconnected as private equity firms view sports teams as valuable investment assets. Liverpool's ownership web extends even further through another FSG shareholder, Arctos Sports Partners, which holds minority stakes in Paris Saint-Germain and Italian side Atalanta.
While conspiracy theories might suggest otherwise, there are no serious indications that these overlapping investments translate to operational influence across clubs. As one source put it, nobody should expect Sheikh Mansour to be sporting a half-and-half City-Liverpool scarf when he tunes into Sunday's match.
This financial connection emerges against a backdrop of genuine rivalry between the clubs, including a £1 million legal settlement paid by Liverpool after City alleged their scouting database had been hacked, and accusations from City officials that Jürgen Klopp had made borderline xenophobic comments about state-backed owners - claims the German manager firmly rejected.
As private equity continues to reshape football ownership, such complex financial relationships between rival clubs are likely to become more common, creating new dimensions in the beautiful game beyond what happens on the pitch.
