In a strategic move aimed at maintaining compliance with UEFA regulations, a significant partner of Fenway Sports Group (FSG) has stepped down from the board of directors at French club Toulouse.
Toulouse Compliance: FSG Partner Resigns
Gerry Cardinale, founder and managing partner of RedBird Capital Partners, made this decision to ensure the separation of Toulouse, a Europa League qualifier, and RedBird-owned AC Milan, a potential Champions League participant.
UEFA rules prohibit clubs with common ownership from participating in the same European competition. FSG, the parent company of Liverpool, holds an indirect stake through RedBird, but as the stake is in FSG and not Liverpool itself, there is no conflict of interest for the Reds.
RedBird’s investment in FSG, amounting to a 10% stake worth $750 million, was aimed at mitigating the pandemic’s impact on Liverpool’s operations.
Besides Toulouse, RedBird also acquired AC Milan, adding to their portfolio of footballing interests that already included French top-flight club Toulouse and Serie A powerhouse AC Milan.
The potential clash arises if AC Milan, currently qualified for the Champions League, were to drop down to the Europa League, where Toulouse secured their spot.
This prompted Cardinale’s resignation as a precautionary measure to satisfy UEFA and preserve the participation of both clubs in European competitions.
Liberty Media Eyes Premier League Investment
Meanwhile, Liberty Media, the chief executive of which is Greg Maffei, has expressed interest in investing in Premier League clubs. Liberty Media is renowned for its successful transformation of Formula 1 since its $8 billion takeover in 2017.
The group currently owns the Atlanta Braves baseball team and has explored various investment opportunities in the sports industry.
While Liberty Media’s potential stake in Liverpool remains speculative, FSG has been seeking fresh investment for the club since November 2022.
Complexities of Club Ownership and UEFA Compliance
The situation highlights the complexities of club ownership and compliance with UEFA regulations.
By proactively addressing the potential conflict of interest between their clubs, FSG and RedBird aim to maintain their operations within the confines of UEFA’s guidelines.
As fans eagerly await the outcome of upcoming European competitions, Liverpool supporters can rest assured that their club remains unaffected by these developments.
The focus now shifts to RedBird’s efforts to secure UEFA approval for both Toulouse and AC Milan’s participation in European competitions, safeguarding the integrity of the tournaments.
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