The building and hotel entrepreneur had held 6 per cent of the shares in Liverpool and on three occasions tried unsuccessfully to buy control from David Moores, the former chairman.
Now Morgan has revealed that he sold his holding before yesterday's final deadline set by Tom Hicks and George Gillett Jr, the new owners. Morgan will have collected about £10 million for his stake, at £5,000 a share, while Moores has acquired £88 million for his controlling interest.
Gillett and Hicks are already guaranteed full ownership of Liverpool, having passed the 90 per cent threshold.
Morgan said: "I spoke to George Gillett and recognised he needed the 100 per cent ownership, so I decided to sell my shareholding to the new owners."