Cristiano Ronaldo gave FSG another transfer problem at Liverpool as £ 1.4bn gap needs to be closed

The difference in strategy between Liverpool and Manchester United in the transfer market is glaring, and has been for some time.

But that hasn’t stopped frustrations in some quarters over Liverpool’s transfer activity this summer as clubs including Manchester United have again spent big.

With the signings of Raphael Varane, Jadon Sancho and Cristiano Ronaldo, Ole Gunnar Solskjaer’s men have clearly improved their squad significantly, spending a lot of money and big salaries for big names.

Liverpool, meanwhile, have spent a relatively modest £ 36million on Ibrahima Konate, with the deal being covered by sales from players like Marko Grujic and Harry Wilson.

But spending only what they earn, creating a sustainable business model in the transfer market, is nothing new for Liverpool under the ownership of FSG and their risk minimization strategy.

READ MORE:Liverpool risk further FIFA bans after Alisson, Fabinho and Roberto Firmino issue

Over the past 10 years, Manchester United have generated around £ 1.4bn more than Liverpool in total revenue, around 45% more than the Reds over the same period.

This is an area where Liverpool need to improve in order to be able to spend more in the market, with Manchester United clearly ahead of them in this regard.

“Income is the most important thing that FSG invests in,” ECHO football writer Dave Powell said on a special podcast exclusively for Blood Red Club members.

‘But they collapsed last year in part because of the pandemic – £ 533million in 2019 and just £ 490million last year.

“One of the reasons FSG turned to RedBird Capital is to help them grow as a business, thanks to RedBird’s expertise in revenue growth.

“It was a $ 750 million investment for 11% of the entire FSG operation – so the Red Sox and Liverpool – and some people thought it was going to be a license to spend, but ultimately a big part capital will be deployed in other areas as increasing income streams.

“The Anfield Road extension, for example, will increase capacity and to some extent help meet demand, which will increase revenues.

“And then you have other things like media rights and the content around the club, RedBird having a history of success monetizing that with the New York Yankees and the networks they have in the United States.

“Liverpool have grown, but Manchester United remain the dominant English brand abroad and Liverpool are making progress, but United had a head start in the 1990s and early 2000s.”

The FSG have overseen a 167% increase in earnings over the past decade at Liverpool, but there is still a huge gap to close for them to reach the same stratosphere as Manchester United.

“The Nike kit deal is a way for them to close that gap,” Powell continued.

“But United left and signed Cristiano Ronaldo. Ronaldo will bring advantages on the pitch, but ultimately it will push them around the world again.

“Whether or not some people think he’s a faded force, he’s still the most popular athlete in the world when it comes to influencing, following on social media and all that.

“For what United pay him, they hope to get him back through commercial sponsors and that will strengthen their brand in markets where others like Liverpool were making progress.

“You need money to be successful, but you also need success to be successful – it’s very difficult. “

For now, this £ 1.4bn gap remains between the two clubs. The arrival of Cristiano Ronaldo has only made it even more difficult for Liverpool to reverse Manchester United’s lead.

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on pocket
Share on whatsapp

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.