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Kenny Huang linked to Liverpool takeover

Wor Horse

By Wor Horse,
in FF - Football Forum

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redheart Veteran

redheart

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I am still a little unsure about the Kenny deal. £800 million is a lot to invest. They would need a serious annual profit to justify that. They need their money back and some profit on top to justify the investment. It strikes me as rather odd.

 

They would be spending £350m on buying the club by paying off the debt, £400m on the stadium and £50m as a one off sum for players. The latter is not a huge sum these days.

 

However, they will want to take out some annual profit. I do not believe that £20m per annum is sufficient on £800m. They will want at least £30m to £40m. Otherwise whats the point. Invest elsewhere. Remember £40m per annum is only a 5% return. That is not large by any means.

 

So we will have to make £70m per year profit to generate an annual net transfer budget of £30m. I do not believe that we can make that kind of profit. Even Man Utd didn't make that it their financial peak.

 

Something smells wrong here.

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ctkeepercoach Enthusiast

ctkeepercoach

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I am still a little unsure about the Kenny deal. £800 million is a lot to invest. They would need a serious annual profit to justify that. They need their money back and some profit on top to justify the investment. It strikes me as rather odd.

 

They would be spending £350m on buying the club by paying off the debt, £400m on the stadium and £50m as a one off sum for players. The latter is not a huge sum these days.

 

However, they will want to take out some annual profit. I do not believe that £20m per annum is sufficient on £800m. They will want at least £30m to £40m. Otherwise whats the point. Invest elsewhere. Remember £40m per annum is only a 5% return. That is not large by any means.

 

So we will have to make £70m per year profit to generate an annual net transfer budget of £30m. I do not believe that we can make that kind of profit. Even Man Utd didn't make that it their financial peak.

 

Something smells wrong here.

 

But remember that the Huang people are counting on the revenues from the heretofore untapped Chinese market which will make up much of that difference in income. Also, they will most likely compare the return on the initial investment to secure the club and transfer budget (approx 400) rather than the whole 800 million up front. The Stadium has to be a long term investment which will see at least a percentage of its costs offset by naming rights etc... and the rest will sort itself out over time providing the club returns to levels of expected success on the field... Just projecting from what I've read that's what's been bandied about...

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TheDrowningMan Veteran

TheDrowningMan

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The Huang deal, regardless if specifics, is probably our only hope of keeping our players short term and, in the wider scheme of things, surviving as anything more than minor outfit long term.

 

We lose the players, we're probably also in administration, we lose all hope of half-decent buyers. Should that happen, the best we can hope for is a Simon Jordan or Ken Bates to steer us through the choppy lower level waters.

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AmerScouse Collaborator

AmerScouse

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when you look at the profit motive, you have to take into account what the club would sell for when you are done. remember that man utd are currently valued at 1 billion. we would be easily worth that amount once we have a new stadium etc.

 

that's the profit right there. add in additional gate revenue, overseas marketing/merchandising etc it all adds up in the end.

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nigecardiff Newbie

nigecardiff

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Ex-Chelsea CEO Peter Kenyon Said to Be Hired by QSL in Liverpool Bid

By Tariq Panja - Aug 19, 2010 9:02 PM GMT

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Former Chelsea and Manchester United Chief Executive Officer Peter Kenyon is negotiating for QSL Sports Ltd. in its effort to buy 18-time English soccer champion Liverpool, according to three people familiar with the situation.

 

Kenyon, whose teams won five league titles with him in charge, has been in talks with Liverpool Chairman Martin Broughton and Barclays Capital, after they were hired by Liverpool co-owners George Gillett and Tom Hicks to sell the club in April.

 

Kenyon, 56, wouldn’t have a seat on Liverpool’s board if Hong Kong-based QSL bought the team, said the people, who spoke on the condition of anonymity because of sensitivity of the talks. Kenyon was named CEO at Manchester United in 2000, then joined Chelsea following billionaire Roman Abramovich’s 2003 takeover. He left the West London club last year.

 

Hill & Knowlton, a public relations company hired by QSL co-founder Kenny Huang, declined to comment. Liverpool spokesman Ian Cotton said the club doesn’t comment on the sales process.

 

Hicks and Gillett bought the club in February 2007 for 219 million pounds, including debt, or $431.7 million at the exchange rate then. The team’s parent company, Kop Football (Holdings) Ltd., now had has debts of 351 million pounds ($549 million. Prospective investors must prove they’ll pay off the current owners’ 237 million-pound debt with Royal Bank of Scotland Group Plc, fund a new stadium and pay for squad development.

 

RBS Debt

 

The RBS debt matures Oct. 6. If the club isn’t sold by then and the owners can’t get an extension, the U.K. government- controlled bank could take over Liverpool.

 

QSL is among as many as four bidders for the club, including Syrian Yahya Kirdi, who lives in Canada.

 

Liverpool’s board said in an Aug. 13 statement it was reviewing a number of bids and would take its time before recommending one.

 

“The board will continue to act in the best interests of Liverpool Football Club and its supporters, doing all that it can to ensure that the club is ultimately sold to a buyer who has the resources and real commitment to give it a long term, stable and secure funding position,” the board said in a statement.

 

The people said Kenyon, now a director at management company Creative Artists Agency, has been involved in the talks for months and was hired because of his experience in English soccer. He is charged with determining the feasibility of a bid and to understand the financial structure of Hicks and Gillett’s investment in Liverpool.

 

To contact the reporter on this story: Tariq Panja in London at at tpanja@bloomberg.net

 

From Here

Ex-Chelsea CEO Peter Kenyon Said to Be Hired by QSL in Liverpool Bid - Bloomberg

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piscinin Mentor

piscinin

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Why?

 

Surely Huang getting someone like that involved is positive if anything? The blokes obviously a smarmy cunt but theres no doubt he's good at what he does and knows football business.

 

Seems clear the board don't have faith in sporting/footballing nouse on the Huang bid and have told them to beef it up.

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Anny Road Grand Master

Anny Road

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Why?

 

Surely Huang getting someone like that involved is positive if anything? The blokes obviously a smarmy cunt but theres no doubt he's good at what he does and knows football business.

 

The day that cunt comes anywhere near us means my generation will go and play bowls.

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Barrington Womble Grand Master

Barrington Womble

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I'm sure Evans is reporting whatever information he's hearing, and I'm guessing that there is very little information coming out of the board-room at the moment.

 

Do you have a better understanding of the situation than he does?

 

That was Kelvin McKenzies excuse once. I'm not saying Evans is that little twat, but it is apparent Evans is happy to print ANYTHING he hears in order to do the dirty work for one bid in particular.

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Guest TesticleOReilly

Guest TesticleOReilly

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Like him or not, Peter Kenyon is extremely good at what he does. He just happens to be a vile human being that makes people's skin crawl.

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Barrington Womble Grand Master

Barrington Womble

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Two more @tariqpanja updates:

 

1) If Huang/QSL is successful Kenyon won't have a role with #LFC moving forward, Bloomberg learns

2) Kenyon has been advising Huang camp for months over #LFC takeover. QSL see Kenyon's knowledge as important to their bid

 

fuck me if ever there was a reason not to back huang surely that has to be it? btw, who/what is @tariqpanja?

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