Liverpool owner Fenway Sports Group is selling its stake in the club to New York investors Dynasty Equity
The search for a minority stake in Fenway Sports Group, the owner of Liverpool, finally ended on Thursday.
FSG also confirmed the sale of an investment in the club to Dynasty Equity, a New York-based fund, for 100-200 million USD. The funds were used to pay bank debts, not for the transfer business. their long-term commitment to the Reds, ending talk of a possible sale of the club.
Dynasty Equity’s investment in the Reds is their first foray into football and comes with no operational control. The company could expand with FSG and Liverpool in the future, but their projected capital was used to service debt that FSG did not want on its balance sheet. But who is Dynasty Equity?
Dynasty Equity was founded last year by sports investment veterans Jonathan M. Nelson and K. Don Cornwell. Nelson, who has more than 35 years of private equity experience, founded Providence Equity Partners, which was instrumental in investing in the Yankees
Entertainment and Sports Network (YES) in partnership with MLS to create MLS Media. Cornwell, a founding partner of PJT Partners, is a former CEO of Morgan Stanley, and the investment bank along with Goldman Sachs is assisting FSG in the transaction. Prior to leaving Morgan Stanley, Cornwell served as head of global sports investment banking and has experience in some of the industry’s largest and most complex sports and entertainment transactions, including the sale of the Buffalo Bills NFL team and the sale of IMG. William Morris Endeavour, the sale of Access/DAZN-owned Perform Group to Vista-owned STATS Inc, the recapitalization of the Pittsburgh Steelers and the creation of Major League Baseball Advanced Media. He has also served as a strategic advisor to both the NFL and the NBA on several occasions.
Dynasty Equity’s senior advisor is David Ginsberg, a partner at FSG and a former director and vice-chairman of Liverpool. Ginsberg has served as FSG’s vice president since its inception in 2002 and helped analyze, finance, negotiate and execute FSG’s acquisitions of the Boston Red Sox, New England Sports Network, Liverpool, RFK Racing and FSG. The Pittsburgh Penguins and Henry sold the Florida Marlins before acquiring the Red Sox. Dynasty, a sports-focused investment company, describes its investment activities through four pillars; rooted integrity, thoughtful approach, diverse perspectives and entrepreneurial teamwork.
The company’s strategy is outlined on their website and states: “We build lasting partnerships by maintaining integrity, trust and respect in all processes and communications.
“We are thoughtful investors who emphasize signature discipline, intellectual curiosity, rigorous analysis and sound judgment.
“We bring a variety of experiences and backgrounds to sports investments that allow us to evaluate opportunities and situations from different perspectives.
“We believe that optimal results are achieved when entrepreneurship and team-oriented cooperation are adopted.”
The deal between Liverpool and FSG is one of Dynasty’s biggest deals to date. Earlier this year, Cornwell became an investor in TMRW Golf, a league founded by professionals Rory McIlroy and Tiger Woods. FSG also invested in TMRW by purchasing the franchise for Boston.
