The financial model that Fenway Sports Group have adopted across their sporting teams has found itself challenged in recent times.
In the Premier League it is the entry to ownership of sovereign wealth funds and nation states that has raised the bar
while the carefree spending of the Todd Boehly/Clearlake Capital regime at Chelsea played a significant role in further distorting the transfer market.
In Liverpool the accusation around a lack of spend in comparison to their rivals has long been levelled at FSG by sections of the fan base
Liverpool have spent £95m this summer already on Alexis Mac Allister and Dominik Szoboszlai
the Reds’ spend will likely be pushing £200m by the time the Premier League season kicks off should they land their targets in midfield and defence
When it come to the challenges facing Liverpool from new ownership groups, FSG’s chief financial officer Julie Swinehart, who has oversight over budgets for all of the FSG-owned teams and properties, is well aware.
Swinehart:
“It is something that is top of mind for us. It is becoming more competitive and I think we try to do more with what’s there.
“There are things that we can do irrespective of winning or losing. That’s looking at today’s interest environment, how can we perhaps institute some techniques and tools to lower interest rates? How can we take a look at the first budget that comes from one of the teams and ask questions about ‘do you really need to spend that much’ and are you shooting high enough when it comes to partnership revenue?
“It’s everything from jersey and team patches to space around the field to NESN (FSG-owned regional cable network in New England) having digital ad insertion now in their DTC (direct to consumer) product. It’s also how we can expand our stadiums and arenas into more revenue-generating space. We’ve done that recently at Fenway, we’re doing it right now over at Anfield and we’re doing it at PPG Paints Arena in Pittsburgh.
“The goal is to keep the good work going. Let’s keep investing in the teams and the real estate where the teams play to make the fan experience amazing, and to introduce new generations of fans.”
FSG partner and Boston Red Sox CEO Sam Kennedy:
"I think Julie has brought a discipline to really study potential growth opportunities for us. She understands that when we are deploying resources the first line item is the teams, the first line item is investing in that product, on the field, on the pitch, on the ice to be successful.
“We are in a business of long-term value creation for our partnership, not a quarter by quarter cash flow projection.
“Julie is under a tremendous amount of pressure because we’ve had a huge amount of success here and we need to keep that going. She brings experience, leadership and passion for the industry and we’ve never had a CFO at the parent company level.
“Part of Fenway Sports Group’s secret sauce is investing in blue chip assets that our fans care passionately about so that we can win, but also invest in their venues. The beauty of Fenway Sports Group is that we feel that we can do it all.”
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