FSG get £2bn boost before crucial Jurgen Klopp replacement decision at Liverpool

Fenway Sports Group has become the third-largest sports ownership group in the world.

The Liverpool owners, who now face the task of finding a replacement for one of the club’s greatest-ever managers, Jurgen Klopp, after his decision to leave at the end of the season was announced on Friday, have taken third spot in the annual Forbes sports empire rankings, with FSG’s total value coming in at $12.95bn (£10.2bn) for the last year.

The figure represents a 25% change year-on-year, with the 2023 valuation for the company, led by founder and principal owner John W. Henry, jumping from $10.4bn (£8.2bn), marking a £2bn rise for FSG.

FSG also owns controlling interests in the Boston Red Sox MLS team, the Pittsburgh Penguins NHL franchise, the RFK Racing NASCAR team, and a number of other businesses, including Fenway Sports Group Real Estate, Fenway Sports Management, and the regional sports network NESN. In addition to Liverpool, which it acquired in 2010 when it was still known as New England Sports Ventures.

The rise in the valuation of FSG can be attributed to growth across a number of its key assets, including Liverpool, with the Reds’ valuation pegged at around £4.5bn at present, up from the £3.8bn to £4bn that had been mooted this time last year. That valuation is expected to continue to rise for several years due to the continued growth of the overseas Premier League TV market. International media deals for the Premier League are expected to remain strong despite early signs of the plateauing domestic deals, a precursor to potential longer-term decline.

Key to the success in driving forward the valuation of Liverpool in recent years has been the success of the team on the pitch that has returned them among the elite of the world game, something that FSG has been able to leverage to create greater financial success and value growth. Klopp has been core to that happening, and the big test for FSG will be now to find someone to replace him and take the baton to keep the success going to make sure the brand growth continues on an upward trajectory. That will be no easy task.

As well as Liverpool, double-digit value growth is likely to be seen with the Red Sox in 2024, while the Penguins could also experience something similar. Also impactful for FSG is the growth of the real estate side of the business, with FSG Real Estate leading on a substantial, multi-billion-dollar development around the Red Sox’s Fenway Park home, which will be known as Fenway Corners.

The 2025 valuation of the firm is likely to be significantly greater again.

FSG is leading a group of US investors with a track record of sports investment, including Gerry Cardinale, the founder and managing partner of RedBird Capital Partners, 11% owners of FSG and majority owners of Italian side AC Milan, in taking equity in golf’s PGA Tour.

The Strategic Sports Group is, according to ECHO sources, on the verge of closing its deal to take equity in the Tour, with the deal separate to one being negotiated between the Saudi Arabian Public Investment Fund, the owners of Newcastle United and the rival LIV Golf Tour, and the PGA Tour.

FSG leapfrogged Dallas Cowboys owner Jerry Jones into third, with Arsenal, Denver Nuggets (NBA) and Los Angeles Rams (NFL) owner Stan Kroenke, through his Kroenke Sports & Entertainment company, sitting in second with a valuation of $15.59bn (£12.27bn), and Formula One owners Liberty Media in first with a valuation of $18.2bn (£14.3bn).

FSG had the highest year-on-year increase of any of the top four, although the new addition to the number five spot, Harris Blitzer Sports & Entertainment, the owners of the Philadelphia 76ers, and the New Jersey Devils, as well as minority stakeholders in Crystal Palace, added the Washington Commanders NFL team to its portfolio.