What FSG’s potential £1.25bn sale of Pittsburgh Penguins means for Liverpool

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Liverpool owners Fenway Sports Group are weighing up the possibility of selling the Pittsburgh Penguins as the NHL franchise soars in value.

FSG have only owned the Penguins since 2021, when they paid Mario Lemieux and Ron Burkle around £650m for a majority stake. That was more than double the takeover price of Liverpool 11 years earlier.

Unlike Liverpool, the Penguins are reliably profitable thanks to a patchwork system of revenue sharing, a collective bargaining agreement with the NHL’s player union and a league-wide salary cap.

Since John Henry, Tom Werner and Mike Gordon arrived on Merseyside in 2010, the reigning Premier League champions have racked up cumulative losses of around £28m.

And while they will post a chunky surplus when the time comes to release their 2024-25 accounts in the spring, FSG have also pumped several hundred million pounds into infrastructure redevelopment.

The only money they have recouped came in September 2023, when Dynasty Equity purchased a three per cent stake for around £127m. However, that money was immediately loaned to the club interest-free.

So the Boston-based investment group is well down on their investment as it stands – but Liverpool’s booming value as a business means they will be in for a huge payday when the time comes to cash in.

The club is typically valued at between £4bn and £5bn, and £700m is their new baseline target for annual turnover. All of that cash is reinvested, making Liverpool a superpower in the transfer and wage markets.

How do the Penguins compare? And with talk of a potential sale, how might the gains affect Liverpool?

Pittsburgh Penguins valued at £1.25bn as FSG contemplate sale

The new NHL season starts today. The Penguins, who are yet to win a major honour under FSG ownership, are looking to improve on their 13th-place finish in the Eastern Conference last term.

But while the team’s sporting performance under FSG has not pulled up any trees, their value is soaring.

A new analysis from Sportico has appraised the Penguins at £1.25bn.

Their value has increased by 16 per cent since 2024, though they have actually fallen three places in the ranking of the most valuable NHL sides.

Earlier this year, it emerged that Liverpool’s owners were courting minority investment in the Penguins. And in recent weeks, reports suggest that a full takeover could even be on the cards.

FSG’s official stance is that they are not interested in selling their majority stake, though many commentators believe that might be a negotiating tactic to drive up the price.

A sale at £1.25bn would be a remarkable markup on the £650m they paid four years ago.

Liverpool fans hoping to see the proceeds from a would-be sale diverted to Merseyside, however, will be disappointed.

FSG have never put money into the sporting side of the club, only to expand Anfield and build the AXA Training Centre in Kirkby.

For most intents and purposes, Liverpool are ringfenced financially from the wider FSG network.

While one less sports team in their portfolio might free up human resources, funds would likely be set aside for future investments.

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Liverpool owners eyeing landmark rugby deal; whispers of NBA Europe franchise

As exclusively revealed by TBR Football earlier this year, FSG are contemplating an investment in English rugby via the breakaway franchise league R360.

Those plans may have encountered a problem today, though, as England Rugby have promised to ban players who defect to the rebel league.

Meanwhile, TBR Football is also told that FSG have explored the possibility of investing in NBA Europe, the initiative to take America’s biggest basketball league across the Atlantic.

It is not known whether an FSG-owned team would have Liverpool branding, but Manchester City and Paris Saint-Germain are known to be looking at entering teams into the competition.

All this takes place against the backdrop of Michael Edwards’ ongoing quest to set up a multi-club network for Liverpool.

Last week, FSG were said to be getting closer in negotiations to buy Getafe.