There are similarities between Elon Musk and Man United’s biggest shareholder Sir Jim Ratcliffe a football finance expert has said.
Controversial tech billionaire Musk, who is the world’s richest man with an estimated worth of more than $425bn, is said to be keen to buy Liverpool Football Club – with the Tesla chief’s dad telling Times Radio: “He would like to (buy Liverpool FC) yes, obviously. Anybody would want to — so would I. His grandmother was born in Liverpool, and we have relatives in Liverpool, and we were fortunate to know quite a few of the Beatles because they grew up with some of my family. So, we are attached to Liverpool you know.”
The prospect of Musk ownership at the Premier League giants has split Reds’ fans, and now a football finance expert has warned supporters to be ‘wary’ of the impact the mogul could have, as he drew comparisons with the impact INEOS boss Sir Jim Ratcliffe has had at arch rivals Manchester United. Football finance expert Dr Rob Wilson, formerly Professor of Applied Sport Finance at Sheffield Hallam University, also believes Musk would face an eyewatering price tag to take over at Anfield – even for the world’s richest person.
Speaking to Slingo Dr Wilson said: “Liverpool fans should be wary. When Musk took control of X he dumped many executives on high salaries alongside a host of functional staff. He saw the organisation as being bloated and wanted to drive efficiency. The profile of INEOS principal Sir Jim Ratcliffe is not dissimilar to the modus operandi of Musk. Efficiency drives across the board have led INEOS to downsize a ballooning staff base at Old Trafford.
“Liverpool are in a better place with their headcount – FSG have already cleared the decks, but we’d expect more efficiency gains with any US investor. There will be an inevitability regarding staff change and he will downsize to drive up margins. Revenue then becomes king – price rises, new commercial opportunities and new markets all exercised to squeeze more revenue. For those hoping that any outside investment will accelerate contract negotiations with star players like Mohammed Salah, I’d think again.”
And Dr Wilson added that even Musk could be priced out of any chance to buy Liverpool if the club’s current owners, Fenway Sports Group, are unwilling to sell. He continued: “The value of LFC currently sits around the £4-4.5 billion mark. Someway behind arch rivals Manchester United. A reinvigorated LFC, with new investment, playing success, new sponsors and a more cost effective staff base (including players) could see the club push on toward a value surpassing £5 billion in the short term.
“Much like United, a $10 billion valuation in the US for the club, or £8-8.5 billion back in the UK, wouldn’t be out of the question if everything aligns like it needs to and they capitalise on new opportunities and trophy success. No investor comes without political baggage. Musk polarises opinion for many but football fans are more interested in on-field exploits than what’s happening off it, often turning a blind eye to the indiscretions of their owners if the team is winning.”