Trump losing US election could benefit Liverpool with ‘billions’ to be made
A Joe Biden victory in the United States’ presidential election, could push forward Liverpool’s owners ambitious financial plans.
That’s the view of an economist from America, who has suggested that should Donald Trump lose, the Fenway Sports Group (FSG) could look to complete their imminent deal with RedBall Acquisition quicker.
Liverpool’s American owners, led by John W. Henry have been in talks to secure the £6billion merger, with the hope it will increase the champions’ worldwide reach.
The deal would see RedBall take a 25 percent stake in Liverpool and would see them listen on the stockmarket.
An agreement between the two businesses is set to be completed regardless of who wins the closely contested presidential race, but a win for the Democratic Party’s Biden could facilitate the acquisition due to the former vice-president’s financial plans.
Andrew Zimbalist, an economist at Smith College in Boston, Massachusetts, and member of the editorial board of the Journal of Sports Economics, has explained exactly what a Biden victory could mean for Liverpool.
"A motivation in the United States is to take some of the capital gain that John Henry and Tom Werner have experienced and realise that capital gain prior to the, hopefully, new administration that comes in January," Zimbalist told the Liverpool Echo.
"Joe Biden has talked about raising tax rates, which were lowered substantially under Trump.
"Therefore you want to be able to realise your capital gain before that tax rate was lifted."
Biden currently leads the incumbent Trump, sitting on 253 electoral college votes, with a number of battleground states still counting votes.
Either representative needs to reach 270, with Pennsylvania, Georgia, North Carolina, Arizona and Nevada still too close to call, as of Tuesday morning UK time, according to CNN.
John Stones set for Man City axe again by Pep Guardiola despite 'almost perfect' display
Biden is the favourite to reach 270 and should that happen, Zimbali added: "If Biden wins then he would become President on January 20 and it would take some time before he would introduce capital gains legislation.
"There are some more pressing issues that he has to deal with. Once he introduces the legislation it would take a couple of months until it was passed and then it most likely wouldn't be enforced until the following year, meaning January 1 of 2022.
"That window might close more quickly but it also might be open for another 14 months, roughly."
Source: Read Full Article