Big Law scores as billionaire investors buy into $7bn Liverpool FC

A host of top firms have landed roles on the sale of a minority stake in Liverpool FC to a consortium backed by some of the world’s wealthiest investors.

A&O Shearman, Latham & Watkins, Clifford Chance, Orrick and Cleary are advising on the deal, which will see 1892 Holdings reportedly acquire roughly a third of the Premier League club from Fenway Sports Group (FSG).

The transaction values Liverpool at more than $7 billion, the Financial Times reported, a huge uplift from the £300 million valuation when FSG acquired the club back in 2010.

1892 is led and managed by investor Amit Bhatia, with backing from Bhatia and the Mittal Family Trusts, K5 Sports and EE Capital.

K5 Sports is a fund of K5 Global, with Amazon founder Jeff Bezos its lead investor, while EE Capital is the family office of Elaine and Facebook co-founder Eduardo Saverin.

Adviser line-up

A&O Shearman is advising FSG and Liverpool, continuing a relationship that stretches back to the club's acquisition by the US group. Legacy firm Shearman & Sterling advised FSG on its takeover of Liverpool in 2010.

Latham is advising 1892, fielding a team across London and the US jointly led by London partners Ed Barnett and Hector Sants, Washington DC partner Nick Luongo and New York partner Matt Eisler. London sports partner Patrick Mitchell is also on the team.

Orrick and Cleary are advising K5 Sports and its lead investor, with New York partner Max Cantor leading the Orrick team. London sports boutique Northridge is supporting Orrick on UK sports regulatory matters, led by partner Ian Lynam.

Clifford Chance is acting for EE Capital, with private equity partners Eric Schaffer (New York) and Neil Barlow (New York and London) and London-based M&A partner Katherine Moir leading the team.

Sports money

The deal is the latest major private capital investment into elite sport, an increasingly valuable source of work for major law firms.

A&O Shearman advised Apollo on its acquisition of a majority stake in Atlético Madrid last year, in a deal valuing the Spanish club at €2.5 billion. Clifford Chance acted for Velocity Sports Partners on its acquisition of fellow La Liga club Espanyol.

Latham has been particularly active in the sector, advising on several major sports investments over the past 18 months, including Apollo's investment in Ryan Reynolds-owned Wrexham AFC.