Arabs eye £500m Liverpool buy-out

[StevieH]

Arabs eye £500m Liverpool buy-out | Sport | The Observer

 

Arabs eye £500m Liverpool buy-out

 

 

Duncan Castles and Richard Wachman, City editor

Sunday January 13, 2008

The Observer

 

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.

 

Article continues

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'.

 

The global credit crunch has made it harder for Hicks and Gillett to raise new revenues elsewhere and also affected the value of their other assets. Should they fail in their efforts to repay the £350m acquisition debt on Liverpool when it comes due in just over six weeks, there would be the possibility of the next owner of the club becoming RBS.

 

The bank, however, are extremelyunlikely to allow the situation to develop that way. Nor are Parry and club honorary life-president David Moores, the former principal shareholder. Parry and Moores are horrified that the Hicks-Gillett deal has not thus far brought long-term financial stability to the club. As a consequence, there are increasing tensions between the Americans and other board members as the refinancing deadline approaches. Parry and Moores are understood to be open to a second takeover.

 

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.

[Ted]

I think this is mildly good news. Mild to spicy.

[Elite]

The pantomime continues

[Moschops II]

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.

 

Now, that's a tricky one...

[Red Nick]

Were just a laughing stock of world football, its a fucking joke

[Unrighteous]

If this happen? We've got cash to burn. However, it'll also be a bit of a joke.

[captainharris]

If this happen? We've got cash to burn. However, it'll also be a bit of a joke.

 

A joke, yes. But a welcome one.

[Unrighteous]

A joke, yes. But a welcome one.

 

I'd be the punchline for a new stadium, no debt, and a big warchest for Rafa.

[captainharris]

I'd be the punchline for a new stadium, no debt, and a big warchest for Rafa.

 

Badum Tish!

[rebel23]

a profit of 75m each what a joke, that sort of money should be going on the team/stadium :\

[Mr Piechnik]

Arabs eye £500m Liverpool buy-out | Sport | The Observer

. Should they fail in their efforts to repay the £350m acquisition debt on Liverpool when it comes due in just over six weeks, there would be the possibility of the next owner of the club becoming RBS.

 

Woah there. I work for the c*nts, I dont want them running my club too.

[derykw]

£75m profit for doing fuck all. Nice work if you can it.

[Filo]

A lot of its obviously speculative but some interesting snippets in there

[StevieH]

Woah there. I work for the c*nts, I dont want them running my club too.

 

Don't be so hasty. You could be entitled to free tickets.

[Bourbon]

a profit of 75m each what a joke, that sort of money should be going on the team/stadium :\

 

A price we would happily see paid to get rid of these two shitbags.

[Anny Road]

A price we would happily see paid to get rid of these two shitbags.

 

Maybe that was the game all along and Moores bought into it.

[Count Morfeo]

Maybe that was the game all along and Moores bought into it.

 

The penny drops - not a dig at you, Anny Road - rather the head-in-the-sand mentality of the average fan, best encapsualted by the editorial stance of the Echo, aka the PR arm of the American owners.

[Anny Road]

The penny drops.

 

Do I get a tick or a star or somethink now.

[bobhorse]

The figures quoted are bolloxs if you ask me.

If they carn't repay the loan they default and the bank then sells the club for whatever they can get and persue the owners for the short fall (if there is one )

 

Why would DCI pay £500m for us to two men who cant afford to re-pay what they owe and can't sell to anyone else, for the same reasons they cant see the project through?

 

Parry and Moores have a vote so do the two sons and the two owners

If one wants to get out (Hicks) and Moores and Parry agree that would be 4 - 2 in favour of a sale.

George would have to go along with it

I think/hope that is the way it will go

DCI will the pay the debt plus a little extra so the Yanks make a profit but £75m each would be a Joke.

I would think we will change hands for about £300 that would repay the debt and allow for a profit for both.

 

That is all on the assumption that the owners dont get the loan refinanced, if they do

repaying the 40-50m a year intereast on that sort of loan, in the years before the stadium is open, would just eat all the spare cash the club would have.

We wouldnt be able to spend big on any players of note

[Red22]

The Echo have been shocking throughout this whole affair - a willing medium for the Yankee propaganda machine.

 

We're at one of the most important crossroads in the Club's history and the editorial staff there are playing it safe and kissing Parry's ass.

 

It's the nationals who now provide the news. The Echo needs to have a look at itself and examine where its priorities lie.

[bobhorse]

There is no bid on the table for us so what do you expect them to print the owners own the club and they have bought players and they are trying to get the money to build a stadium they are the facts

 

We might not like them but the rest is speculation they wont bite the hand that feeds them

It will change when there is something more concrete to write

[Unrighteous]

DIC are a shrewd bunch of investors. They want us... but they won't give £150m more than what George and Tom's purchase price.

 

These yanks will be lucky to see £10-£20m each for their troubles or DIC will walk away.

[SPReds]

January 13, 2008

Banks set to back ‘new Anfield’

Jonathan Northcroft

 

TOM HICKS and George Gillett have moved closer to securing a bank deal that will allow them to press ahead with their ambitious plans for a 70,000-seat new stadium for Liverpool.

 

The Americans, who for several months have been locked in talks with Royal Bank of Scotland and Wachovia over a £350m refinancing loan, are now optimistic an agreement can be struck by the end of the month – and possibly as early as next week. The injection from the banks is necessary to cover the £270m of loans Hicks and Gillett took out to purchase Liverpool last February and help fund their new ground.

 

The Americans spent nine hours in New York on Tuesday with Rick Parry, Liverpool’s chief executive, discussing two rival architectural designs for ‘New Anfield’ and will make a decision on which option to take as soon as the package from the banks comes through. The Dallas-based company HKS produced a revised version of their original plans which were scrapped last month as the project became simply too expensive to proceed with, while Manchester-based AFL came up with their own proposals as the two firms went head to head.

 

Both companies were asked to produce a full set of proposals with detailed costings, designs, time scales and planning information. Parry says he was impressed by what he saw, but Liverpool are not yet willing to put their own deadline on when a decision will be made. Parry maintains, however, that whichever plan gets the nod it will produce an “excellent result”. “We had two very detailed and very informative presentations which were very thorough and extremely professional,” he said. “It has been another big step forward to finding the best possible solution.”

 

Despite the snags over the new ground, and continued doubt over the future of team manager Rafa Benitez, Hicks and Gillett are adamant that they do not intend to sell the club and cut their losses, despite continuing speculation to the contrary.

 

Banks set to back ‘new Anfield’ | Liverpool - Times Online

[Red22]

The figures quoted are bolloxs if you ask me.

If they carn't repay the loan they default and the bank then sells the club for whatever they can get and persue the owners for the short fall (if there is one )

 

Why would DCI pay £500m for us to two men who cant afford to re-pay what they owe and can't sell to anyone else, for the same reasons they cant see the project through?

 

Parry and Moores have a vote so do the two sons and the two owners

If one wants to get out (Hicks) and Moores and Parry agree that would be 4 - 2 in favour of a sale.

George would have to go along with it

I think/hope that is the way it will go

DCI will the pay the debt plus a little extra so the Yanks make a profit but £75m each would be a Joke.

I would think we will change hands for about £300 that would repay the debt and allow for a profit for both.

 

That is all on the assumption that the owners dont get the loan refinanced, if they do

repaying the 40-50m a year intereast on that sort of loan, in the years before the stadium is open, would just eat all the spare cash the club would have.

We wouldnt be able to spend big on any players of note

 

Don't agree with you there mate. The share capital of the Club is worth £174m (according to G&H). Dubai valued it at something like £156m.

 

If Dubai decide to buy, they'll be paying something about this mark for the Club - not £300m.

 

There is no bid on the table for us so what do you expect them to print the owners own the club and they have bought players and they are trying to get the money to build a stadium they are the facts

 

We might not like them but the rest is speculation they wont bite the hand that feeds them

It will change when there is something more concrete to write

 

I'd expect them to mention that G&H were planning to transfer the acquisition debt onto the Club, at the very least.

 

Or even to observe that they've refused to come out and publicly back the manager.

 

Among other things.

[Red22]

January 13, 2008

Banks set to back ‘new Anfield’

Jonathan Northcroft

 

TOM HICKS and George Gillett have moved closer to securing a bank deal that will allow them to press ahead with their ambitious plans for a 70,000-seat new stadium for Liverpool.

 

The Americans, who for several months have been locked in talks with Royal Bank of Scotland and Wachovia over a £350m refinancing loan, are now optimistic an agreement can be struck by the end of the month – and possibly as early as next week. The injection from the banks is necessary to cover the £270m of loans Hicks and Gillett took out to purchase Liverpool last February and help fund their new ground.

 

The Americans spent nine hours in New York on Tuesday with Rick Parry, Liverpool’s chief executive, discussing two rival architectural designs for ‘New Anfield’ and will make a decision on which option to take as soon as the package from the banks comes through. The Dallas-based company HKS produced a revised version of their original plans which were scrapped last month as the project became simply too expensive to proceed with, while Manchester-based AFL came up with their own proposals as the two firms went head to head.

 

Both companies were asked to produce a full set of proposals with detailed costings, designs, time scales and planning information. Parry says he was impressed by what he saw, but Liverpool are not yet willing to put their own deadline on when a decision will be made. Parry maintains, however, that whichever plan gets the nod it will produce an “excellent result”. “We had two very detailed and very informative presentations which were very thorough and extremely professional,” he said. “It has been another big step forward to finding the best possible solution.”

 

Despite the snags over the new ground, and continued doubt over the future of team manager Rafa Benitez, Hicks and Gillett are adamant that they do not intend to sell the club and cut their losses, despite continuing speculation to the contrary.

 

Banks set to back ‘new Anfield’ | Liverpool - Times Online

 

Read this earlier and thought it was a nothing article - conjecture based on what Mr Northcroft has read over the last few days methinks.