Potential investors wait for Liverpool European failure to force cheaper deal By Nick Harris 10 March As least two potential investors in Liverpool are stalling on making offers for a share in the club in the expectation that Rafael Benitez’s team will fail to qualify for next season’s Champions League, forcing the current owners, Tom Hicks and George Gillett, to make a cut-price deal in the summer, sources with insider knowledge of the search for new cash have told sportingintelligence. It is understood that at least one interested party is American , while another is “from the East”, although contrary to some reports, not from India. There has been “no serious interest in a purchase” from the sub-Continent to date according to those with working knowledge of the hunt for new finance. Abu Dhabi has been mentioned in City circles as the source of some interest. Sportingintelligence has confirmed only that one group is US-based. This group has been in active talks in recent weeks, but has now taken the view that waiting holds potential advantages, and is keeping a “watching brief”. An impeccable source has told sportingintelligence: “Liverpool’s owners are not anywhere close to a deal to sell a major stake in the club. There is some way to go yet.” The source said the value of the club to potential investors does not lie in whether Liverpool qualify, or not, for the Champions League in any single season. “The value in the club lies in Liverpool being one of the leading football brands in this country [Britain] and around the world, and about being inside the top four in the Premier League over the long term. “Would missing out on the Champions League put pressure on the owners? It would certainly be better to qualify. Qualification is not necessarily the best outcome for would-be investors”. Received wisdom has it that if Liverpool – in action in the Uefa Cup tomorrow – fail to finish in the top four, and miss out on the Champions League, this will harm the search for new money. In fact it will harm Hicks and Gillett most because they cannot afford to retain ownership and fulfill their stadium plans on their own. With 50-50 control and no new external capital, an extra hole in next season’s budget could force them out. The pair need to repay £100m to RBS Bank by July of outstanding debts that managing director Christian Purslow said recently stood at £237m. In a recent meeting with the Spirit of Shankly fans’ group (SoS), Purslow made plain that Hicks and Gillett need to find £100m by the summer. Two versions of the minutes of the Purslow-SoS meeting exist (and both are published on the SoS website), and they differ in some areas. But even in the uncontested version, Purslow is quoted as saying: One of our key priorities is to reduce the debt by £100 million. This is a requirement from our bankers and will allow us to look at a more flexible and longer term refinancing with our bankers when this investment is brought in. Ideally we would like a three- or four-year refinancing deal rather than the shorter ones we have had recently. The targeted reduction in borrowings was agreed by the bank, CP and the owners when I was appointed. The £100 million investment will be made by the issuance of new shares, and will not go towards anything else other than paying down the debt, reducing it to £137 million. This new investment will also mean a dilution of the current ownership. Hicks and Gillett still believe they can find an investor willing to pay £100m or more for a stake in the club below a controlling holding. But the lack of interest in that proposition has been self-evident. The Americans are understood to have been told by at least one professional source of advice that their best hope of finding new money while staying involved themselves is offering at least a 50 per cent stake (and controlling interest) to a third party. The upside to this for an investor would be control, but not at the full cost of the club. The upside for the current owners would be to stay involved at less cost to themselves. Other Liverpool insiders insist there are still new partners out there who want to work with Hicks and Gillett – and are in ongoing talks – but deadlines set by Purslow for new money to come have already come and gone. Instead there are interested parties waiting for Liverpool to stumble in the run-in, knowing Hicks and Gillett will become susceptible if they do. Purslow’s last public utterance on the subject was that money would arrive by Easter but this looks highly unlikely. And while no new money is forthcoming, so the proposed new stadium – which by general consensus will underpin genuine significant growth for the club in all areas – is no nearer being started. http://www.sportingintelligence.com...verpool-failure-to-force-cheaper-deal-100301/
interesting article that, i for one would gladly take missing out on the cl if it meant getting those two out
The last thing in the world we need is another investor, its gotta be a buyout and not from another yank c*nt.
It's all just conjecture - anyone can quote an "impeccable source". It doesn't take a genius to work out that the club will be cheaper to buy if we don't make the champions league. At least the author had some knowledge of SoS and their meetings with Purslow. We're all hoping this horrible pair get out of our club as soon as possible
If there is gonna be any change over etc then I don't think it will happen until close to then so I'm not gonna read about any speculation until around that time. I think if they do make that payment we're fooked
There's lots of yanks that aren't c**ts- look to Birmingham for proof. As long as H&G are gone it's got to be a step in the right direction. I'll not believe anything is close until we have details on the official site.
Liverpool FC fans threaten Royal Bank of Scotland boycott over Reds finance deal The Echo A GROUP of Liverpool fans are threatening to boycott the Royal Bank of Scotland if it extends its refinancing deal with the club. Liverpool FC co-owners Tom Hicks and George Gillett have until July 24 to repay the remaining £237million borrowed from RBS and American investment bank Wachovia that they have leveraged against the club's assets. Despite pledges to the contrary, Hicks and Gillett have set a total of £350million worth of debt against the club that was around £44million in the red when they took control from David Moores in February 2007. Now, some Reds fans are urging the bank to call in the debt this summer in the hope it will force the Americans to sell the club. An e-mail addressed directly to RBS chief executive officer, Stephen Hester, has been replicated and signed by individual Liverpool fans, angry at the bank's involvement. The e-mail has also been copied to other senior figures at the bank and Liverpool FC, including Hicks and Gillett, plus city council leader Warren Bradley. It reads: "Having reviewed the company accounts in relation to Liverpool Football Club and Parent Company Kop Football Ltd, of which there is approximately £237m worth of debt; it is clear that the business model operated by the current owners Tom Hicks and George Gillett is unsustainable. "Whilst I appreciate that any refinancing package deal is a confidential matter between the Royal Bank of Scotland and the current owners of Liverpool Football Club, it is also a very personal issue for many Liverpool supporters around the world. "There is an ever increasing sense of anger and resentment towards the owners Tom Hicks and George Gillett, which is likely to turn towards RBS if the refinancing deal is extended in the coming months. "It is my understanding that if the refinancing deal is renegotiated beyond July 2010, then a campaign in protest against the Royal Bank of Scotland will take place which will include billboards with anti-RBS messages encouraging Liverpool Fans to Boycott RBS in a similar manner to the Boycott of the Sun Newspaper. "We as supporters of Liverpool Football Club are effectively paying the loan repayments for Hicks and Gillett, and as taxpayers have a "controlling stake" in RBS. We should therefore have a say in where our money is being invested. "The ball is firmly in your court." Links to a website supporting a campaign to boycott The Sun are included in the e-mail as well as a link to the Liverpool Supporters Union, Spirit of Shankly, website. Spirit of Shankly have previously threatened similar action against the Royal Bank of Scotland when Hicks and Gillett secured a £350m refinancing package in January 2008, a move which saddled Liverpool with annual interest payments of £30m. However, although some of the fans behind the latest campaign are members of Spirit of Shankly, SOS says this latest move to oust Hicks and Gillett is not official union action. An SOS spokesperson told the Echo: "Whilst we appreciate the intent behind this action it is not something the recent AGM or management committee have considered." Hicks and Gillett have successfully sought several repayment extensions from RBS and Wachovia. In January 2009 they exercised terms under the loan agreement to extend it for a further six months until July 24 that year. After that, further extensions were thought to be unlikely. Instead, the Americans again refinanced with RBS and Wachovia, granting themselves a further 12 months to July 24 2010 to repay the debt. Following concerns expressed by club accountant, KPMG, about Liverpool's ability to operate efficiently with such a burden of debt, a condition was written into the latest agreement that £60m in equity must be provided to reduce Liverpool's outstanding liablities to around £250m. That was achieved last year but the banks are known to have put pressure on Hicks and Gillett to attract third party investment to the club. Investment banks Rothschild and Bank of America Merrill Lynch have been brought in to help with the search, while Liverpool managing director, Christian Purslow, is looking to bring in £100m of investment before the July deadline.
I wonder Has anyone in SOS, ever thought about trying to get access to the PA system at Anfield on a matchday? (illegally of course),with prepared statement in hand,you could inflict a lot of damage on the yanks.... while putting supporters of LFC straight on what damage they are doing to our club. And the publicity would be unreal,if such a stunt could be done. I know its easier said than done of course.
Good idea, but that would lead to an investigation and criminal charges, and we cant have that, as it wold look bad, we need to be as extreme as we can without breaking the law along the way,.
To hell with him , i want Bill Gates - he gives loads away to charity and if i'm not mistaken we're close to becoming one
I dont reckon it would look bad. OK its maybe an underhanded way to get the point across, but fcuk it, Those yanks have been the dirty ones in all this. with some sympathetic friends inside,and maybe a blind eye,or slight lapse in security. The publicity would reach out very far and wide.