Wealth Club: Billionaires' big risks buying soccer clubs

Billionaire Jeff Bezos has acquired a stake in Liverpool FC through a consortium called 1892 Holdings, which purchased a share from the club's current owner, Fenway Sports Group. The initial reports suggested a 30% stake, but later it was revealed to be closer to a 38% shareholding. The members of 1892 Holdings include Amit Bhatia, who is the son-in-law of Indian steel magnate Lakshmi Mittal and a co-owner of Queens Park Rangers, Facebook co-founder Eduardo Saverin, and Amazon.com founder Jeff Bezos.

Bhatia will become the vice-chair of the club's board, while the consortium will also have several seats on the board.

The billionaires' interest in soccer clubs is not surprising, given the considerable revenue they generate. For instance, Real Madrid, Barcelona, Liverpool, Manchester City, PSG, and Bayern Munich all earned over $90 million in revenue last year. However, investing in a soccer club comes with high risks. Many successful businesspeople have had their reputations tarnished by their time in a club's board, and some have not seen the financial gains they anticipated.

The Glazers, for example, invested heavily in Manchester United but left the club with heavy debt. Mike Ashley, who took control of Newcastle United in 2007, was initially well-received by fans but faced criticism for his management style. These examples demonstrate that billionaire ownership of soccer clubs can lead to high returns, but it can also result in public backlash and financial struggles.