Billionaires like Jeff Bezos take big risks buying soccer clubs

The landscape of elite soccer club ownership is shifting as a consortium, including tech titans Jeff Bezos and Eduardo Saverin, agrees to acquire a stake in Liverpool FC. This deal involves 1892 Holdings purchasing a share from current owner Fenway Sports Group (FSG), which has controlled the club for nearly 16 years.

“

So Bezos owns a part of the company that now owns a part of Liverpool FC. What that means for the club is not entirely clear.

While FSG will maintain operational control and day-to-day management of the team, the new investors are set to gain significant influence. Amit Bhatia, son-in-law of Indian steel magnate Lakshmi Mittal and founder of AyBe Capital Advisers, will become vice-chair. The consortium, which also includes Facebook co-founder Saverin and Amazon founder Bezos, will secure several seats on the club's board. Despite FSG's claims of retaining control, the substantial investment, rumored to be over £1.9 billion, suggests the new stakeholders will not be passive.

“

FSG says it retains operational control of LFC, and there won’t be any changes to the day-to-day management of the team.

Bezos's involvement marks the latest instance of billionaires targeting soccer clubs, a trend driven by the significant business potential inherent in the sport. Top clubs like Real Madrid and Barcelona generate revenues exceeding $1 billion annually, with others like Liverpool, Man City, and PSG also reporting substantial earnings. This financial allure is amplified by the unique nature of sports teams as investments.

“

However Bhatia is set to become the vice-chair of the club’s board, while the consortium will also have a few seats around the boardroom table.

Unlike many other businesses, sports franchises are seen as relatively future-proof due to their ability to command large, live audiences – a rare commodity in modern entertainment. Furthermore, the intense fan devotion associated with clubs provides a loyal customer base that persists even through disappointing seasons. For some billionaires, investing in a soccer club represents the fulfillment of a lifelong passion or a significant hobby, blending personal interest with substantial financial opportunity.

“

Given that, and the rumoured £1.9 billion+ investment, you can’t imagine these are going to be silent investors.