Liverpool co-owner agrees $550m NHL deal
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ANFIELD FINANCE SAGA
Liverpool co-owner agrees $550m NHL deal
Tom Hicks and George Gillett (R): Anfield's answer to Statler and Waldorf
Liverpool owner George Gillett has agreed to sell the NHL's Montreal Canadiens to the Molson family in a deal that could help lift the financial cloud over the Premier League club.
The deal to sell the NHL's most successful ever team is worth a reported $550m (£330m). Gillett put the Canadiens up for sale earlier this year as he scrambles to find funds to meet obligations on debt incurred as part of his takeover of Liverpool in partnership with Tom Hicks.
The sale includes Gillett's 80% stake in the team, the Bell Centre arena, and the Gillett Entertainment Group. Brewing moguls the Molsons, who sold the controlling interest in the team to Gillett for around $275m (£165 ) in 2001, already own the remaining 20% share.
''This is a very exciting time for our family and we are grateful to the many people and organisations who came forward to offer their collaboration in the development of our proposal,'' Geoff Molson said in a statement.
The sale must first be approved by the NHL's Board of Governors, and will likely not be completed for several more weeks.
The NHL's approval of the sale would, however, seemingly be only a matter of course.
NHL commissioner Gary Bettman responded positively to the news of the deal, saying: ''I think to the extent that they've been able to find people who are obviously passionate about the game and structure a transaction that makes sense for everybody, that's a real plus for the franchise and the fans in Montreal.''
News of the deal comes a little over two weeks after Liverpool's accountants warned of ''significant doubt'' over the club's parent company's ability to continue as a going concern with debt repayments due on July 24.
The company formed by Gillett and Hicks suffered a loss of £42.6m ($70.5m) last year, largely on interest repayments. The pair took out a loan of £350m ($580m) when they bought the club in 2007.
While Hicks and Gillett have been seeking other investors for Liverpool, they have so far come back empty-handed, meaning funds from a sale of the Canadiens could be needed to help cover upcoming payments.
Hicks has also been seeking to sell off elements of his own sporting empire - which includes Major League Baseball's Texas Rangers and the NHL's Dallas Stars.
Hicks' situation is further complicated as the Hicks Sports Group in April defaulted on a £325m loan ($525m) relating to the Rangers and Stars.
The Canadiens, who are celebrating their centenary year, are the oldest continually run professional ice hockey team in North America. Their 24 Stanley Cup titles are the most in the NHL.
''Our family has been very proud to be associated with the Montreal Canadiens over the past eight years and particularly to be a part of their Centennial Season,'' Gillet said after confirming the deal.
''I am fully confident that the Molson brothers, who have been a great part of the heritage of the club, will ensure the preservation and development of this great sports institution.''
The Molson family first bought the team in 1978, although their involvement dates back to the 1950s.
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fucked up man, they should sell liverpool
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The fat meat in their mouth where they will let go?
Pool will be their money making machine... lol
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well... lets take it that liverpool will have some more money to spend =x
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Originally posted by zocoss:
The fat meat in their mouth where they will let go?
Pool will be their money making machine... lol
I doubt so. Teams in EPL are proving to hard to be profitable. Player wages are rising fast even in economic recession. Even a highly successful commercial team like Man Utd are seriously in debt of 750 million pound. It will depend on their owner willing to cover up the debt easily.Only super rich owner like Abramvich/Chelsea and Man City arabs owner can handle the mountain debt. Other mini billionaries owners are already feeling the heat like West Ham and Newcastle. Even Liverpool owner are not consider super rich.
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liverpool's owners are doesnt know how to operate a club
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Originally posted by CannyOng:
I doubt so. Teams in EPL are proving to hard to be profitable. Player wages are rising fast even in economic recession. Even a highly successful commercial team like Man Utd are seriously in debt of 750 million pound. It will depend on their owner willing to cover up the debt easily.Only super rich owner like Abramvich/Chelsea and Man City arabs owner can handle the mountain debt. Other mini billionaries owners are already feeling the heat like West Ham and Newcastle. Even Liverpool owner are not consider super rich.
Players wages rising fast if you take the pounds exchange rate into consideration and the new 50p rule.
In debt doesn't mean its a bad thing...most businessman take loan to operate their business anyway...at the end of the day, their income is able to cover the interest and pay some debt off, why not? It's not considered a crisis...
Their TV rights, merchandise, tickets, sponsor, etc is good enough to cover those.
Also, RM took loan to purchase all their players...
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Real Madrid isn't your normal club... Yes they are already in debts of around a few hundred million euros before their lastest loan, but they are unlike most or should I say any club, their bank loans, don't come with interest payment... lol... So they save a lot yearly from having to pay interest on their loans... Cos no businessman or bank in Spain would dare to be known as the man or the bank that kill Real Madrid... lol
I wonder who is going to foot the bill when it becomes too large... The last time they got into huge debts a few years back, they had to sell their Madrid training ground in the City area and moved to a more remote location... Even then, there were accusations that the priced they got was over the normal valuation then... I wonder next time who is going to pay for it... Maybe the citizens of Madrid or some politician ready to pleased the Spanish people...
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Yah, Real's status is a non-profit social trust hence the interest generated is not as high as other clubs (not that they do not need to pay interest I guess?). Real also has the biggest domestic league TV rights, more than twice of ManU.
The last time Perez sold their training ground is to wipe out their debts...so that they can buy galacticos. Although some said that the city overpaid for the ground, maybe due to Perez's influence? They also use the money to build another one in the city outskirt (obviously much cheaper), which is a good move by Perez. He is a shrewd businessman...