FSG and Liverpool investor RedBird buy AC Milan: Here's what it means for Reds

RedBird Capital Partners are a US-based investment group who bought an 11% stake in all of Fenway Sports Group (FSG) sports investments last year.

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FSG are the owners of Liverpool as well as other sports franchises such as the Boston Red Sox. Currently, Red Bird are the third biggest stakeholder in FSG.

As a result of their $750m investment, they have minority control over Liverpool's business dealings too. However, that has not affected Liverpool's day-to-day business, with FSG still firmly in control of all major decisions.

Why is this news important? Well, recently, RedBird purchased Italian club AC Milan in a deal worth $1.22bn, who are one of Liverpool's direct Champions League rivals.

They also bought Ligue 2 club Toulouse and have stakes in other franchises such as Indian Premier League team Rajasthan Royals.

How does their AC Milan purchase affect Liverpool?

As per the Liverpool Echo, RedBird's purchase of AC Milan will not affect Liverpool in any major capacity.

Gerry Cardinale, founding member of RedBird, claimed earlier this year that he would be 'disappointed' if his company didn't 'significantly' increase the amount of capital in FSG.

The Echo adds: "RedBird's ownership of Milan also doesn't cause any issues with the Champions League and ownership, with RedBird's stake minority stake and lack of a presence on any Liverpool board meaning they have no influence on business matters at the club, the amount of separation enough to not register on UEFA's radar."

They do have big plans for AC Milan, such as investing heavily in the team and re-building the famous San Siro. However, their business moves there will not affect Liverpool.

However, RedBird have been described as 'business builders' instead of 'passive investors', so their moves with Milan will give FSG and fans an indication of any future plans for Liverpool.

Source: Liverpool Echo