Liverpool keep an eye on RedBird as they take a crucial step toward a potential takeover.
It’s not surprise that RedBird Capital Partners wants to increase their European football portfolio.
Alec Scheiner, one of the firm’s partners, revealed earlier this year that RedBird had looked at around 80 teams in Europe before settling on Toulouse, a team they bought last summer, and that future transfers were being planned to build a multi-club platform.
Cardinale chose to invest £538 million ($750 million) in the total FSG operation in March, after first discussing a potential 25% share through his special purpose acquisition company RedBall, a collaboration with baseball statistics genius Billy Beane of “Moneyball” fame.
That agreement fell through for a variety of reasons, including both sides losing interest in taking the company public and some investors being skeptical of the FSG business’s value.
However, in March, RedBird, a play on Cardinale’s surname and the fact that a Cardinal is a red bird, arrived on the scene with the intention of using their capital injection across the FSG business to allow projects to proceed. It was never intended for the transfer kitty, but the option to spend it elsewhere in the business meant that FSG could have approached the transfer window in the same way if the football eco-system hadn’t been wrecking havoc for the past 18 months.
RedBird and FSG, on the other hand, are interested in collaborating to acquire more sporting properties, something RedBird has already done on their own, purchasing Toulouse last year and taking a small stake in Malaga, a Spanish second-tier side that reached the Champions League quarter-finals in 2013.
Malaga, a Spanish second-tier club, has a tiny investment, with roughly 600 shares purchased for £15,500 (€18,000). However, RedBird is considering a long-term strategy, positioning themselves for a takeover attempt once the Andalucian side’s complicated legal situation is addressed.
And last week was a significant step forward in this regard.
Malaga’s financial problems appear to be a long way away. The summary comes to a close.