DIC: takeover thread

[Sinos]

Originally Posted by Carra_is_legend

Seriously, why would the bank put pressure on Hicks and recall the loan? I know there is a credit crunch and financial crisis and all that but the banks need to survive this period. To survive, banks need to receive the interest payments - there is no use of getting the loan amount back and keeping the money to themselves. It is not as if the banks are not lending at all - they are just being careful about it. They just want to make sure that their money will be safe and interest payments will be met. LFC can easily afford to do that - at the expense of the fans ofcourse.

JP Morgan is laying people off because they are worried about their profits - they are not worried of going bankrupt!

It is very much like getting a mortgage mate. Banks are now asking upto £2k arrangement fee if someone wants a mortgage. But, the banks are quite happy to add that £2k fee with your loan amount - hence forcing you to repay that £2k over a period along with interest every month. It is not as if the bank is getting that £2k there and then to solve their "financial crisis" is it? Banks are all cunts. They are just using the situation to their own gain.

but he WOULDN'T be going to hedge funds looking for money if the banks were willing to lend to him.

[coop]

Hicks is playing a dangerous game and if it goes wrong Liverpool FC will be the ones who pay not Tom Hicks.

[Carra_is_legend]

Originally Posted by Sinos

but he WOULDN'T be going to hedge funds looking for money if the banks were willing to lend to him.

May be the banks are looking for more personal guarantees?

Anyway, I was arguing against the suggestion that the banks might call the loans back. I was just saying there is no reason for them to do that.

[Carra_is_legend]

Originally Posted by coop

Hicks is playing a dangerous game and if it goes wrong Liverpool FC will be the ones who pay not Tom Hicks.

Even if it goes right, it will be us who pay not Tom Hicks. Increased ticket prices, corporate boxes, fans being forced to buy cup tickets, subscribe to the annual eat as much as you can Hotdogfancard etc.

Hicks won't give a fuck about us.

[coop]

Hicks is playing a dangerous game because if the figures he is projecting dont work then its Liverpool that will suffer.

The discussions between George Gillett and Dubai Holdings differ greatly then what that person who posted the article on RAWK said.

[Carra_is_legend]

Originally Posted by coop

Hicks is playing a dangerous game because if the figures he is projecting dont work then its Liverpool that will suffer.

Depends on how you look at it. If he builds that stadium, we will be competitive and as long as we are competitive, he will get the figures. Utd's model is the same - in fact, it looks dangerous. Some of the loans Glazers have borrowed are at 14.25%. Still, they are meeting the interest payments quite comfortably AND spending huge money on transfers AND making money for themselves. If Hicks/Rafa can make sure we are in top 4 until the stadium gets built, I think that will do for Hicks.

Originally Posted by coop

The discussions between George Gillett and Dubai Holdings differ greatly then what that person who posted the article on RAWK said.

Heard anything then coop?

[bigal]

Originally Posted by coop

Hicks is playing a dangerous game because if the figures he is projecting dont work then its Liverpool that will suffer.

The discussions between George Gillett and Dubai Holdings differ greatly then what that person who posted the article on RAWK said.

in what way Coop?

[coop]

As regards what discussions took place between Gillett and Dubai Holdings then i dont know what the outcome of the talks were but only a very select few will know so there would be hell to pay if information from that meeting was released.

Anything is possible in the world of finance and its feasible what that article from RAWK could be true as regards what Hicks is planning to do but one thing i do know is if Hicks does go ahead with his plan and get the money then we had better hope we qualify for the Champions League every season because room for error is not an option.

Everyone who Tom Hicks has approached have so far refused to back him which should give you an indication of what other people in the financial world think of his idea.

[Kennys_spell]

Originally Posted by Carra_is_legend

May be the banks are looking for more personal guarantees?

Anyway, I was arguing against the suggestion that the banks might call the loans back. I was just saying there is no reason for them to do that.

Am I wrong here or isn't all this 'Hedge fund begging' pointless if the board stand against him and refuse to allow him to load the borrowing against the club. The board have a clear majority of 4 - 2, with Gillett claiming he'll 'never sell to Hicks'.

Let him go and put himself deeper and deeper into debt.

[Bernard Diomede]

I'm confused, if god forbid Hicks should get the financing in place gillette still has the power to tell him to swivel doesn't he?theirs nothing written to say gillette has to accept his bid is their?

[WaltonRed]

Anyone one else seriously fucking bored with all this now?

The original poster who was celebrating must feel like a right tit.

[Carra_is_legend]

Originally Posted by coop

As regards what discussions took place between Gillett and Dubai Holdings then i dont know what the outcome of the talks were but only a very select few will know so there would be hell to pay if information from that meeting was released.

Anything is possible in the world of finance and its feasible what that article from RAWK could be true as regards what Hicks is planning to do but one thing i do know is if Hicks does go ahead with his plan and get the money then we had better hope we qualify for the Champions League every season because room for error is not an option.

Everyone who Tom Hicks has approached have so far refused to back him which should give you an indication of what other people in the financial world think of his idea.

There is room for error coop. Even someone one like Hicks will be stupid enough to budget beyond the 1st round of champions league - in other words, he has to budget assuming we will go out of the 1st round.

Knowing Rafa, he will probably take us to the semi final stage every year and that is added income. And if Rafa finishes 2nd/3rd in the league instead of 4th, this is additional income (not just directly from the league but indirectly from the champions league next year as team that finished 2nd previous year gets more money than the team that finished 4th).

Say we finish 2nd next year and reach the semi/finals of the champions league the year after, the money that we would have earned should be enough even if we miss out on the top 4 the year after. Think this is where Hicks has realised Rafa's importance and is probably the reason behind their recent alliance.

[Kennys_spell]

Originally Posted by Bernard Diomede

I'm confused, if god forbid Hicks should get the financing in place gillette still has the power to tell him to swivel doesn't he?theirs nothing written to say gillette has to accept his bid is their?

Exactly the point I made above.

[Falla]

Originally Posted by Code72

Cowtown is not one to post bollocks about things like these.

[Carra_is_legend]

Originally Posted by Kennys_spell

Am I wrong here or isn't all this 'Hedge fund begging' pointless if the board stand against him and refuse to allow him to load the borrowing against the club. The board have a clear majority of 4 - 2, with Gillett claiming he'll 'never sell to Hicks'.

Let him go and put himself deeper and deeper into debt.

Hicks is trying with the hedge funds to buy Gillett out. If he manages to do that, there will be no board to oppose him.

[Carra_is_legend]

Originally Posted by Bernard Diomede

I'm confused, if god forbid Hicks should get the financing in place gillette still has the power to tell him to swivel doesn't he?theirs nothing written to say gillette has to accept his bid is their?

On paper, he will have the power to say fuck off to Hicks but financially, will he have the power? If he has the kind of financial power that Hicks has, he won't be desperate to sell.

[Sinos]

Originally Posted by Carra_is_legend

There is room for error coop. Even someone one like Hicks will be stupid enough to budget beyond the 1st round of champions league - in other words, he has to budget assuming we will go out of the 1st round.

Originally Posted by Sweet Silver Song off RAWK

Hedge fund companies are the equivalent of loan sharks in the financial world. They provide loans where no other self respecting Banks will. They come at a price though, because their interest charges (and financial penalties) are that much steeper.

The Glazers are doing ok now, but they took a massive gamble and it just about paid off. They were loaned up to their eyeballs with debt, the demand for corporates had bottomed out at OT. they were struggling to fill the 76K stadium and season tickets were only slowly being taken up. If they had continued for another season in that vein, they would have gone into meltdown. I know certain Hedge companies involved were already looking at identifying certain players that they wanted sold. But luckily for them Cech suffered that injury at Reading, and they managed to sneak the league. Since then they've gone from strength to strength on the pitch, and the corporates are back as well as the demand for tickets from the fans. Things are much more stable now.

Hicks may similarly gamble like the Glazers, but I doubt even with Rafa's guile we will see a similar outcome.

That shows how perilously close Manure were.

[Bernard Diomede]

But in terms of financial power he doesn't need to have significant power until next year when the loans are due to be refinanced does he? I don't know much about all this shit but the way i see it gillette is in exactly the same position as hicks, ie he can sell to who he wants after this exclusivity deal, or he can stay and dig his feet in until he needs to refinance next year, which then according to others on here may mean the banks intervene. Gillettes lack of financial muscle may just mean we get fuck all money to spend on players, after all he already owns half the club doesn't he? Or have i read it completely wrong?

[Carra_is_legend]

Originally Posted by Sinos

That shows how perilously close Manure were.

Ofcourse it is close. A massive massive gamble. But, if things are done properly, the situation can be managed as the Glazers have proved.

We may not spend the sort of money Utd have spent in recent years but we have a manager that Hicks can trust to bring in the constant income from champions league every year (remember Hicks's quote about loyalty and dedication from fans and that this doesn't have to necessarily come from winning stuff?)

As fans, we will be in a shit situation either way - if things work out with Hicks, we will pay over the odds to see the team play. If things don't work out, we will see our beloved team fighting for a midtable position.

[Ted]

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