Arabs eye £500m Reds buy-out
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Liverpool FC could change hands for the second time in a year as their American owners encounter difficulties in refinancing £350million of debt incurred in taking over and running the club. Beset by the steeply rising costs of a new stadium and manager Rafa Benitez's demands for new players, Tom Hicks and George Gillett Jr have been attempting to transfer the debt, for which they are personally liable, on to the club itself. City sources believe this is an extremely difficult task to complete before the loan's due date at the end of February.
Sameer Al Ansari (left) is a Liverpool fan.
It is possible that the Americans will meet the deadline, but if not an Arab investment group, Dubai International Capital, is understood to be close to lodging an offer to buy out the American pair, probably for about £500m. Takeover discussions are thought to be due before the end of this month.
If successful, DIC, led by Liverpool supporter Sameer Al Ansari, would invest heavily in two areas: the new stadium that Liverpool need if they are to compete with Arsenal and Manchester United for matchday revenue, and an improved playing squad. Were they also to acquire a new management team Jose Mourinho, who is known to be interested in managing Liverpool, would be a prime candidate.
DIC were extremely close to buying Liverpool last February, only to lose out to Hicks and Gillett when the club's chief executive, Rick Parry, switched his support from the Arab camp to the American. The latter paid £174.1m for a 100 per cent shareholding, also agreeing to take on the club's then debt of £44.8m.
The purchase, however, was funded solely with borrowed money, Hicks and Gillett's loan from the Royal Bank of Scotland swelling to £350m as it was used to fund several high-profile summer transfers, development work and architect's plans for a 60,000-seat stadium in Stanley Park, and to roll up the interest on the debt.
The RBS loan is due for repayment next month. The Observer understands that attempts to restructure it have so far failed and the Americans have yet to inject new equity into the refinancing. While RBS have asked Hicks and Gillett to each commit £20m of their own cash to the deal, City sources believe that at least one of the pair is not prepared to do so. Hicks and Gillett declined to comment last night.
Meanwhile, work on 'New Anfield' has been held up by the impasse over the acquisition loan, with no chance of funding being put in place for the £400m stadium project until the issue is resolved. A meeting in New York last week at which architects HKS and AFL presented competing stadium designs, was described by Parry merely as 'another big step forward to finding the best possible solution. Everyone is reflecting on what they have heard and a clear decision will be taken soon'.
Sources in the Middle East have confirmed that DIC remain as keenly interested in buying Liverpool as they were one year ago. DIC last night refused to comment on the matter, but they appear best placed to resolve the financial problems affecting the club's competitiveness in the Premier League. A mooted valuation of £1billion has been ridiculed, but an enterprise value of around half that figure might prove acceptable, allowing the Americans to exit with a profit of £75m each.
The 2 Americans to exit with a profit of £75m each? -
somethings i do not understand, someone pls answer my problems
how come when the glazer took over man utd by borrowing money, so many united fans protested
but the liverpool american owners did the same thing, borrow money, get liverpool into debt, yet no pool fans protested?
how come? -
i also want to know leh.Originally posted by uncle_abc:somethings i do not understand, someone pls answer my problems
how come when the glazer took over man utd by borrowing money, so many united fans protested
but the liverpool american owners did the same thing, borrow money, get liverpool into debt, yet no pool fans protested?
how come?
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Err... cos the pool fans are quiet and don't mind getting owned?Originally posted by uncle_abc:somethings i do not understand, someone pls answer my problems
how come when the glazer took over man utd by borrowing money, so many united fans protested
but the liverpool american owners did the same thing, borrow money, get liverpool into debt, yet no pool fans protested?
how come?
Yeah whats wrong with the Glazers? I am glad that they took over united... Just thank goodness it wasn't Tom Hicks and George Gillett that took over at United...
These 2 jokers are only out to make a quick buck at Pool's expense... wth bought it afew months ago only and now want to walk away with a profit of £75m pounds each !
Parry and club honorary life-president David Moores are goondus... Selling Pool to these Bloodsuckers... milking Pool all the way to the bank...
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i guess its because they need money to challenge the other top 3. they chose the americans over the arabians.Originally posted by uncle_abc:somethings i do not understand, someone pls answer my problems
how come when the glazer took over man utd by borrowing money, so many united fans protested
but the liverpool american owners did the same thing, borrow money, get liverpool into debt, yet no pool fans protested?
how come? -
We need a true red fan to take over, Steve Morgan was one but they rejected him on grounds that his offer would lower the value of Liverpool.
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like tat will cre8 unrest in Pool dressing rm anot
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Man...all these boardroom stuff are very messy and maybe unsettling?
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Perhaps accepting Thaksin would have been better than these 2 Americans... At least he got $$$.
Now Mr Thaksin want revenge by taking away that 4th CL spot from Pool... -
When the Yankees took over Man Utd, the fans objected strongly cos the Yankee know nuts about soccer and could be using Man Utd as an investment.
It may be due to british pride.
After the Yankee took over Man Utd, they were willing to splah big money to get players like Terez for Alex.
So, I guess for the Liverpool fans, they were hoping for money from Yankees to build the stadium and buy more good players.
But, the real intent of the Liverpool Yankees are really to make a good buck and not really into investing more of "their" money into the stadium.
If that is the case, must as well get the Leempire to invest on Liverpool since they are known to splash hard earned peasants cash on money losing business.
Since they have already "sponsored" man city through a "good" friend that love ba ku teh, may as well buy another club. -
if man city really take the 4th place, ex-Liverpool chairman can go bang wall for not accepting his takeover.Originally posted by zocoss:Perhaps accepting Thaksin would have been better than these 2 Americans... At least he got $$$.
Now Mr Thaksin want revenge by taking away that 4th CL spot from Pool... -
Thaksin is a narrow minded man and he won't forget things others do to him...
You can bet he wants to get even with those people...
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During the period of takeover, the tak-sin was trial for corruption.
Why would Liverpool want to risk taking a potential criminal fund and get into bigger trouble later ?
Leempire should just move in and invest immediately and remove any further guessing cos sin city have tonnes of money to BURN.
A football club is a good place to burn money and be famous. -
Err... I think you may be mistaken... during the time when he was very interested to takeover, he was still the Prime Minister of Thailand...Originally posted by Medicated Oil:During the period of takeover, the tak-sin was trial for corruption.
Why would Liverpool want to risk taking a potential criminal fund and get into bigger trouble later ?
Leempire should just move in and invest immediately and remove any further guessing cos sin city have tonnes of money to BURN.
A football club is a good place to burn money and be famous.
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O ya..2005 right?Originally posted by zocoss:Err... I think you may be mistaken... during the time when he was very interested to takeover, he was still the Prime Minister of Thailand... -
Purchase of Manchester City Football ClubOriginally posted by lpx88:O ya..2005 right?
Yeah, while Prime Minister, Thaksin offered to buy Fulham F.C. from owner Mohamed al-Fayed. After Fayed rebuffed his offer for the club, Thaksin unsuccessfully bid to buy Liverpool. -
Liverpool needs to have a change of chairmans or they would end up as Leeds. They are currently in debt and not in the top four. If they fail to qualify for Champions League this season, i fear for them
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given their run of form,i would not be surprised if man city or everton manages to take the 4th spot from liverpool..Originally posted by glacer:Liverpool needs to have a change of chairmans or they would end up as Leeds. They are currently in debt and not in the top four. If they fail to qualify for Champions League this season, i fear for them
Liverpool inconsistencies has shown and is still showing.. -
They are in 4th place currently...Originally posted by glacer:Liverpool needs to have a change of chairmans or they would end up as Leeds. They are currently in debt and not in the top four. If they fail to qualify for Champions League this season, i fear for them 
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Good job Liverpool.
Instead of fighting for the title, you're now fighting to remain in 4th... -
liverpool is in a tricky spot...Originally posted by zocoss:They are in 4th place currently...
anfield is suppose to be a fortress, but they only manage to win 4 games at home..
if this goes on, i think it will be a UEFA cup campaign for liverpool next season -
man utd is the first few clubs that is bought by foreigners. i think the fans are reserving the impact made my the glazers. as for pool, the fans must have already thought that its a trend that they should be in.Originally posted by uncle_abc:somethings i do not understand, someone pls answer my problems
how come when the glazer took over man utd by borrowing money, so many united fans protested
but the liverpool american owners did the same thing, borrow money, get liverpool into debt, yet no pool fans protested?
how come?
btw, man utd was already a very rich club when glazers bought them. man utd don't have any stadium plans and dont have any money woes. the same cannot be said to the liverpool. i dont think their balance is very healthy and they still dreaming of building a new stadium(and where does the money comes from?). i think this explains why man utd fans are more critical abt their bought over.
u think liverpool could have bought torres without the boughtover? -
Hicks ... won't sell his share
LIVERPOOL co-owner Tom Hicks is set to reject any renewed attempt by Dubai International Capital to buy his 50 per cent stake.
The investment company, who missed buying the club last year, are reportedly ready with a bid of £150million-plus for the American’s share of the Anfield set-up.
Hicks and fellow American George Gillett currently hope to secure a £300m loan to re-finance their original deal within the next week.
They took over only last February.
However, tensions between them are rising and Gillett could be interested in forming a new partnership with DIC.
Even so, their representative Roy Winnick said last night: “Any suggestion Mr Hicks or Mr Gillett is contemplating selling the club or any portion thereof to DIC or anyone else is categorically untrue.” -
Liverpool's owners consider selling out for £50m profit
Liverpool's future was cast into doubt last night as the club's two American owners were faced with a decision on whether to accept a £400 million buy-out by Dubai International Capital. The offer from DIC, the investment arm of the Dubai government, could land millionaires George Gillett junior and Tom Hicks with a staggering profit of £50m, less than a year after their own takeover and without them having put a single dollar of their own money into the club.
Such an outcome would enrage Liverpool fans already dismayed by their team's lack of progress towards becoming genuine Premier League contenders since the arrival of Gillett and Hicks. Despite the temptation to cash in, Hicks and Gillett are understood to be planning to cling on to control of the club and go ahead with their intention to take out £350m in refinancing loans.
The worrying downside to that venture would be the crippling effect on the transfer plans of manager Rafael Benitez and the fear that it could be the first step towards a Leeds United-style meltdown. Neither DIC nor the club's bankers, the Royal Bank of Scotland, would allow that to happen and they will hold crisis talks this week to discuss how the Dubai company could rescue Liverpool from crisis, on and off the field.
Gillett and Hicks are close to finalising a restructuring package with RBS, who loaned them £220m to buy Liverpool last February, and American bank Wachovia. The new £350m loan would cover the Americans' original borrowing, the money the club raised to buy players last summer and the start-up costs for a new stadium project.
But City observers believe the new loans would be merely a 'sticking plaster' for the problems at Liverpool and would leave them unable to compete with the likes of Arsenal, Manchester United and Chelsea because of crippling £30m-a-year interest charges.
There are even fears that any future failure to qualify for the Champions League could leave the club vulnerable to the kind of downward spiral suffered by Leeds. RBS, who have a long relationship with Liverpool, are so concerned about the deal that a senior figure in the bank has been called in to oversee the delicate negotiations.
But with fans due to mount a huge demonstration against the Americans at Anfield tomorrow, the pressure on them to walk away is increasing by the day. Hicks, however, is playing hardball, refusing to be forced into accepting DIC's current price for the shares and believing that, if the refinancing goes through, he will be in a stronger negotiating position. For their part, DIC will not pay a price which does not make commercial sense under their own plans and are prepared to bide their time. -
liverpool in the hands of mourinho and some arab bos...cool