Liverpool FC owner Fenway Sports Group (FSG) is said to be exploring a deal to buy the Spanish second-division side Malaga as it looks to move into a multi-club model. But PSG’s owner is also looking at the same club.
According to The Athetic, a delegation from FSG has visited Spain to evaluate the prospect of buying a stake in Malaga, a team that was in the Champions League semi-finals in 2013 but has since been relegated from the top flight. It is currently 49 per cent owned by Blue Bay, a hotel and real estate group, and 51 per cent owned by the Qatari businessman, Sheikh Abdullah Al Thani.
“FSG routinely engages in conversations and evaluates opportunities across global sports, a common process to assess ventures that align with the organization’s strategic priorities,” a spokesperson for the group told Liverpool.com.
Michael Edwards, formerly Liverpool’s sporting director, was brought back into the fold as FSG’s CEO of football, partially with the multi-club model in mind. Last year, a move to purchase French team Bordeaux, a similar fallen giant, was also looked into.
“I was humbled by the desire and persistence they showed in wanting to work with me again,” Edwards said upon his return. “This is definitely not something that I take for granted given their track record across sport and business.
“It was vital for me that, if I did return, it had to be with renewed vigor and energy. In practice, this means having fresh challenges and opportunities.
“As such, one of the biggest factors in my decision is the commitment to acquire and oversee an additional club, growing this area of their organization. I believe that to remain competitive, investment and expansion of the current football portfolio is necessary.”
Why is the multi-club model advantageous?
In simple economic terms, the diversification of resources makes sense for owners looking to spread out the risk. Chelsea owner Todd Boehly has done it and Manchester City and the Red Bull groups are other examples.
But it is unlikely that buying a smaller team would mitigate that if anything drastic were to change at Liverpool or in the Premier League. Instead, the gain is likely to be more in shared information and expertise.
It could also be a way of getting around the post-Brexit barriers in the transfer market. With what could essentially become something of a feeder club, players could still be brought into the football group even if the chance to bring them to Anfield directly might now be gone.
When Stefan Bajcetic was signed as a 16-year-old from Celta Vigo, for instance, Liverpool had to rush through that deal before the Brexit rules changed in order for it to be allowed. It would no longer be possible.
However, the next Bajcetic could be signed by a club owned by FSG in another European country, such as Malaga, and then moved across when they have accumulated enough experience to be given a work permit. Bajcetic is currently on loan at Las Palmas.
