Liverpool’s DNA is built on dynasty. Between them, Bill Shankly, Bob Paisley, Joe Fagan and Kenny Dalglish built one that lasted for three decades. They even have a company named Dynasty Equity in their shareholder structure. But in the FSG era, is that possible to create a dynasty?
On face value, the numbers across Europe look promising. Paris Saint-Germain, Juventus, Bayern Munich and Barcelona have won domestic titles by the dozen in recent years, while Real Madrid have monopolised the Champions League.
But Liverpool are operating in the Premier League, which looks set to move beyond Manchester City’s own dynasty and towards a more fragmented market. And ‘market’ is the watchword.
The so-called ‘Big Six’ is evolving into an eight, with Newcastle United and Aston Villa’s owners hell-bent on glory, even if it means accumulating massive cash losses. See also: Chelsea.
| Position | Team | Played MP |
Won W |
Drawn D |
Lost L |
For GF |
Against GA |
Diff GD |
Points Pts |
| 1 |  |
34 | 25 | 7 | 2 | 80 | 32 | 48 | 82 |
| 2 |  |
34 | 18 | 13 | 3 | 63 | 29 | 34 | 67 |
| 3 |  |
34 | 19 | 5 | 10 | 65 | 44 | 21 | 62 |
| 4 |  |
34 | 18 | 7 | 9 | 66 | 43 | 23 | 61 |
| 5 |  |
34 | 17 | 9 | 8 | 59 | 40 | 19 | 60 |
| 6 |  |
33 | 18 | 6 | 9 | 53 | 39 | 14 | 60 |
| 7 |  |
34 | 16 | 9 | 9 | 54 | 49 | 5 | 57 |
| 8 |  |
34 | 14 | 9 | 11 | 50 | 46 | 4 | 51 |
| 9 |  |
34 | 13 | 12 | 9 | 56 | 55 | 1 | 51 |
| 10 |  |
34 | 13 | 11 | 10 | 53 | 41 | 12 | 50 |
Meanwhile, an emerging pack of clubs – Nottingham Forest, Brighton, Brentford – make up for what they lack in resources with brains. They recruit brilliantly and are keeping Liverpool and their peer group’s feet to the fire.
Transfer spending is done on tick and wage inflation is rampant as a result of the competition. Yes, revenues are soaring across the board, but costs are rising faster. Profit and Sustainability Rules and Financial Fair Play meanwhile haven’t slowed things down as expected.
We’re in a boom cycle; some football finance experts TBR Football speaks to suspect we may be approaching a bust.
Here, Liverpool are at a disadvantage despite being crowned Premier League champions last Sunday.
FSG’s self-sufficient model: A barrier to sustained success?
Fenway Sports Group, or FSG, don’t spend what they don’t earn. In 15 years at Anfield, the owners have put next to nothing into the club. Liverpool are self-sufficient and have just about broken even under the Boston-headquartered regime.
Their success on the pitch – two Premier League titles, a Champions League, a Club World Cup, two FA Cups and three League Cups – has been achieved on a relatively lean budget. The wage bill has risen in lockstep with turnover. FSG haven’t budged from a 60-65 per cent wages-to-revenue ratio for the last five years. As far as transfer market net spend goes, Arne Slot’s side are about mid-table.
Credit: Adam Williams/TBR Football/GRV Media
It’s not exactly an underdog story at Anfield, but it’s fair to say they have overperformed under FSG, whose operational management and recruitment of both staff and players has been par excellence.
Fans of Liverpool, the Boston Red Sox and the Pittsburgh Penguins, however, will tell you that John Henry, Tom Werner and Mike Gordon are naturally risk-averse.
They want to improve the bottom line while scaling the business commercially. Honours on the pitch are useful here, but their tilt in the risk-reward and income-expenses axis means going for broke to deliver silverware just isn’t in their interests. Trophies are addictive, but FSG have shareholders to satisfy.
Credit: Adam Williams/TBR Football/GRV Media
On the other hand, what Liverpool do have is a global brand that Fenway have turned into a money-printing machine.
To continue winning, winning sustainably and eventually delivering a return for FSG, this is the magic key.
Liverpool chief Ben Latty: FSG’s commercial masterplan key to future success
In 2023-24, a season in which Liverpool had no lucrative Champions League football, commercial income continued to rise.
Liverpool generated £308m through sponsorship, retail and events, up from £272m the previous financial year. When FSG took over the club in 2010, commercial income stood at £62m.
On average, this revenue stream has grown by 17.6 per cent annually under the American owners. If they hit that this year, commercial income will hit £362m, which is eminently achievable given the bonuses they will rack up from sponsors and the merchandise they sell as fans celebrate a record-equalling 20th English league title.
New Adidas deal will see income continue to boom
Next year, Liverpool’s new deal with Adidas kicks in. That partnership is set to be worth a basic £60m per season, anywhere up towards £90m depending on sales and other contractual factors.
“They are future-proofed,” said University of Liverpool football finance lecturer and Price of Football author Kieran Maguire, speaking exclusively to TBR Football after the deal was inked last year.
“No one does their homework more than Liverpool when it comes to the value of their commercial deals.
“It’s broadly identical to the deal that Man United have over the next decade. That has set a benchmark. It would be difficult for Liverpool to negotiate above that price.
“Real Madrid are also with Adidas and on a long-term deal, so we can see that Adidas are trying to get their A-listers tied up for a long time.
“In the short term, you could argue that Adidas are paying over the odds. But you and I could have this conversation in 10 years time and we will think it has been fantastic for both parties.”
The Premier League’s commercial market is ultra-competitive, just like the league itself. The Big Six is still a league in itself as far as the value of sponsorships is concerned, but the competition between those half dozen clubs is intense.
Liverpool’s intellectual property – the badge, the history – gives them an edge, as does the team they have staffing the commercial department.
Ben Latty was promoted to chief commercial officer last summer and, among other successes, has overseen Mohamed Salah’s selfie celebration with the Google Pixel smartphone against Tottenham which has made a huge splash and will probably win awards for brand activations.
Speaking to the Financial Times after the title win, Latty said commercial income was key to being able to “sustainably finance the pursuit of trophies.
“We’re already looking to the future and working out how we can best maximise this success [winning the Premier League] to continue our commercial growth and support further on-pitch success,”
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Liverpool receive £4m-plus bonus after winning Premier League
Liverpool don’t provide a specific breakdown of where their commercial income comes from.
However, football business insider Lukasz Baczek reports that Nike and Standard Chartered, Liverpool’s two main sponsors, have each paid out bonuses worth around £2m for winning the league.
That doesn’t move the needle significantly in terms of the top line, but it’s welcome income all the same.
Perhaps more significant is the increased leverage that Liverpool will have with potential new partners as a result of their Premier League triumph.
Sponsors always pay more to be associated with success, or to have their brand displayed next to the Premier League trophy itself.
Liverpool’s commercial income stayed relatively static after their last title, but that was largely to because the pandemic had restricted spending in the commercial and retail markets.
