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Kenny Huang linked to Liverpool takeover

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Guest davelfc

Comment From Dave Dave: ]

Hi Tony, why do you think that Kenny Huang has issued a statement denying backing by CIC.

Thursday August 5, 2010 15:18 Dave

15:18

 

 

Tony Barrett:

I've just been assured that Mr Huang and his representatives have issued no such statement, although one could follow later today. I have no idea what information it might contain though

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In one corner is a sales process set up and agreed to by all parties. In the other is the greed of the owners for profit and the willingness of some buyers to pander to that greed in the hope of gaining an advantage over the other buyers.

 

The owners agreed to the sales process from a position of weakness. Of course they will break their word if they feel it is not bringing them the profit they think they deserve. They will do it surreptitiously at first, by conniving with buyers, and openly if necessary by refusing to transfer their shares.

 

They might calculate that if they reject the sales process, Broughton will be able to walk holding his head up high and LFC will continued to be run by their man, Purslow and a toothless manager. They may also calculate that the banks will not call the loan. It is hardly in the bank's interest to give up a cash-cow. Also banks tend to back-off in situations like this and both Gillet and Hicks know that from long experience.

 

However, the ruling in the Texas bankruptcy court yesterday does affect the situation. Banks are more likely to act if a court has made a ruling against one of the bank's debtors or if other banks have moved first. There may even be clause in the RBS loan that allows the bank to call its loan on the basis that the borrower's credit has been seriously weakened by a related bankruptcy, judgement or serious loss of assets and the net worth the bank originally accepted as part of the security for the loan.

 

If Hick's creditors in the USA try to seize his LFC assets this would be troubling to RBS. Even if such claims are not likely to succeed RBS would not want the additional risk of being subject to USA court rulings on creditors claims. So after the bankruptcy ruling yesterday I think Hicks is substantially weaker and the RBS more likely to act than before. At the same time Hicks may be more desperate and more likely to make rash, irrational decisions.

 

If this analysis is correct then the Huang approach has a lot more force than the others. Huang is showing that his priority is to satisfy the banks - so even if Broughton were to walk or even if the owners were to refuse to cooperate with the agreed sales process - Huang would still be in the game.

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Hang on to what though? If a court has said every business is fair game to the creditors, then they lose the lot. Are RBS going to want to see their £257m gone in a bankruptcy hearing? No, so they will either push through a sale, or sell the debt on to the likes of Heung. Of course it's not as simple as that, but, for me, we have certainly moved on from the case of there is nothing at all to suggest a sale might happen at some point, which is what Barry fears. There is plenty to suggest we are nearer to getting rid of the yanks then at any other point.

 

The court in the US hasn't got any jurisdiction over here, Johnny, so Liverpool would be exempt from this...i think

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Guest davelfc

Comment From Steve

From the information you have from you're sources, what does you'e gut feeling say when it comes to the next name over the door at Anfield?

Thursday August 5, 2010 15:11

 

Tony Barrett:

I'd say Huang is clear favourite.

Thursday August 5, 2010 15:11

 

 

Comment From Pete F

Tony, Its been denied this afternoon that Kenny Huang is being backed by the Chinese state, via a statement.

Thursday August 5, 2010 15:12

 

Tony Barrett:

Hello Pete, that's not the situation as I understand it having communicated with Huang's representatives in the last hour. I stand to be corrected if there is other information available though.

Thursday August 5, 2010 15:13

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Remember when all the talk was of DIC? Wasn't Hicks stance then, 'My decision'? I remember something about him querying Gilletts ability to sell without his consent.

So why are they not blocking this sale?

Why are they not releasing a statement, refusing to negotiate with any bids that do not meet their price?

Why all these games, why all the staling tactics?

 

because then they were fighting each other, now they are fighting the banks and it's a different game. everything they've done over the past 15 months have been stalling tactics to cling on while debted up to their eyeballs with debts neither them or the club can afford. but they don't want to let go, so they hold on and stall. it's no different to what someone would do had they lost their job and can't pay the mortgage - you might have been splitting up with your wife before you lost your job, but once it was likely you'd both be on the streets you would do anything you could to keep your roof above your head. that's all C&A are doing now.

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No one is going to offer him big profits though when they know the creditors are all over him and a court said his assets can be stripped to make up any shortfall.

 

it's an auction, it depends how much one of the candidates wants the club. anybody with half a brain wouldn't have paid a pound for chelsea in 2003 they were that fucked, but abramovich still gave the smurf the profict he wanted because he wanted the club.

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Guest davelfc
it's an auction, it depends how much one of the candidates wants the club. anybody with half a brain wouldn't have paid a pound for chelsea in 2003 they were that fucked, but abramovich still gave the smurf the profict he wanted because he wanted the club.

 

But Abramovich does only have half a brain, if the gormless look on his face is anything to go by.

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There's only one real candidate imo. The rest are just like your mate going on your eBay listing and bidding more and hoping to get outbid at the last minute rather than get stuck with the item.

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Comment From Steve

From the information you have from you're sources, what does you'e gut feeling say when it comes to the next name over the door at Anfield?

Thursday August 5, 2010 15:11

 

Tony Barrett:

I'd say Huang is clear favourite.

Thursday August 5, 2010 15:11

 

 

Comment From Pete F

Tony, Its been denied this afternoon that Kenny Huang is being backed by the Chinese state, via a statement.

Thursday August 5, 2010 15:12

 

Tony Barrett:

Hello Pete, that's not the situation as I understand it having communicated with Huang's representatives in the last hour. I stand to be corrected if there is other information available though.

Thursday August 5, 2010 15:13

 

It wasn't the statement from Huang's people that I am thinking about, its the one from a CIC spokesperson in the Financial Times. That's a fairly reliable source. The other details in the article are pretty worrying.

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It wasn't the statement from Huang's people that I am thinking about, its the one from a CIC spokesperson in the Financial Times. That's a fairly reliable source. The other details in the article are pretty worrying.

 

Aye. Financial Times are not goal.com or sly.com either.

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It wasn't the statement from Huang's people that I am thinking about, its the one from a CIC spokesperson in the Financial Times. That's a fairly reliable source. The other details in the article are pretty worrying.

 

 

That is a very worrying article, but I prefer to believe for the time being.

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Guest davelfc

Tony Barrett:

Afternoon, we may as well get straight into it because everyone will be desperate for information abut what is happening at Liverpool at the moment. I know I am!

 

Thursday August 5, 2010 14:29

 

To make life easier for the mods and everyone else, I'll just keep updating this post.

 

Comment From Mike

Tom Cannon(SSN) suggests The Times may well have got it wrong with their big story. Got anything to say back?

Thursday August 5, 2010 14:35

 

Tony Barrett:

Mr Cannon is perfectly entitled to his opinion and he can point to his own record of calling the big issues rightly or wrongly.

 

Comment From Barrie

Is this a lot of fuss about nothing? DIC were financed from the government coffers and everybody was lauding them at the time.

Thursday August 5, 2010 14:37

 

Tony Barrett:

Good question Barrie. There is a lot of fuss but I'm not sure it's about nothing. There is a battle on to own one of the world's most renowed sporting institutions and that is always going to create massive interest. Add into the equation that Liverpool could be bought by the investment arm of the Chinese government and you've got a massive talking point on so many levels. I take your point about DIC though, there is nothing yet apart from indications to indicate that Liverpool will be put on sound financial footing if they are eventually bought by Kenny Huang.

 

Comment From Phil

Tony, is there any danger in your eyes that Broughton could opt for a deal that favours the Americans over the club's long term health given that he was brought in by them to sort out the deal?

Thursday August 5, 2010 14:40

 

Tony Barrett:

You would certainly hope not Phil. When you look at it Martin Broughton appears to have two options. 1. Do the right deal for the Americans, watch Liverpool's problems multiply and see his own reputation go up in flames or 2. Find the right owners, secure the club's future and take his place in history as the man who helped save Liverpool FC. Surely that would be an easy enough decision to make for a man of Mr Broughton's renowned business acumen.

Thursday August 5, 2010 14:42

Comment From Guest

Tony, If the Chinese do take over is there any indication that they will speak to the SOS union to get our view on how the club could be better run for the fans ?

Thursday August 5, 2010 14:43

 

Tony Barrett:

Afternoon Burnsie, I would expect any new owners, whoever they may be, to speak to supporters groups. Obviously, the new owners would have the right to speak to no-one if they so desire but in the best interest of the club you would hope that they would embrace fans in a way that Hicks and Gillett totally failed to do. The more open they can be with supporters the more they will be trusted and that would obviously be better for everyone than the situation we have had for the past two or three years.

 

Comment From Ashley Escobar

Tony, how comes the club can't do anything to stop people like this Kirdi joke publicly stating he is negotiating a buyout when we know he is infact not? Surely there is an element of criminality in stating false facts to inflate the price of a company?

Thursday August 5, 2010 14:46

 

Tony Barrett:

To be fair to Mr Kirdi, there is no evidence that he is artificially trying to lift the price, although there are obviously people who feel this is the case. The problem with the sale of a club like Liverpool is it is such a high profile institution that it is always going to attract massive media interest and one of the by-products of this is you will always get people trying to take advantage of it and make a name for themselves. It is up to Barcap and Martin Broughton to sort out the genuine investors from the impostors and until an unless Kirdi is categorically ruled out of the process the media has to treat him with a degree of seriousness even if we feel his actions will not ultimately match his words.

Thursday August 5, 2010 14:50

 

Comment From Mike

Your mate Tony Evans made a fool out of himself this summer, with im saying Gerrard and Torres where deffo leaving and it was all doom and gloom,

Thursday August 5, 2010 14:51

 

Tony Barrett:

Alright Mike, the nature of journalism is you will sometimes call stories right and sometimes you will get them badly wrong. I've made plenty of mistakes in my time and I know for an absolute fact that I'll make many more in the time to come. Without wishing to defend my boss (I'm quite happy for him to get it in the neck from time to time), the situation with Liverpool has been so fluid and changeable this summer that it has been hard to call anything right one way or another. At the end of May I was convinced that Liverpool would lose Gerrard or Torres or both. By the end of June I didn't think that would be the case but there were still plenty of people, including some at the club, who feared Liverpoool would lose at least one of their star players. That hasn't happened but anyone who thinks it was never a possibility is misguided.

Thursday August 5, 2010 14:55

 

 

Comment From Dave

How confident are you that CIC are behind the bid, another boradsheet is reporting that Kenny Huang PR agency has released a statemnt that CIC are not behind the bid.

Thursday August 5, 2010 14:55

 

Tony Barrett:

Hello Dave, to be fair the line about CIC wasn't mine so I can't be 100% sure of anything. The story was written by Helen Power, our business reporter who has unbelievable contacts in the financial world, and Tony Evans, who broke the original story about the interest from Mr Huang. I wouldn't hesitate in backing their judgement on this because they are about as close to the issue as it is possible to be. But there may be some smoke and mirrors to come simply because this is such a complex situation and maybe we won't have conclusive confirmation about who is and isn't involved in the bid until it is or isn't accepted.

Thursday August 5, 2010 14:58

 

 

Comment From Tony

Do you think James Milner is a possibilty?

Thursday August 5, 2010 15:03

 

Tony Barrett:

You would certainly hope not at the price Aston Villa are quoting. If Liverpool went down the Manchester City route of buying mediocre players at vastly inflated prices it would be almost as depressing as having no transfer funds at all.

 

 

Comment From Peter

Hi Tony, when do you think we will see a completed take over announced?

Thursday August 5, 2010 15:04

 

Tony Barrett:

Hello Peter, I keep hearing different things. Someone said to me earlier on today that Huang's bid is now "unstoppable" and could be complete within a week. Someone else said I should stand by my phone - whatever that means - because it could happen any day. The only thing that is clear is that Huang's bid has momentum.

Thursday August 5, 2010 15:05

 

 

Comment From HAtem

Hi Tony, Forgive me for being negative but we seem to get a whole waft of takeover rumours just before the deadline for refinancing with RBS - What makes you think this is genuine?

Thursday August 5, 2010 15:06

 

Tony Barrett:

I appreciate your cynicism, it's fully justified given everything that's happened over the last few years. This situation is different, though. Huang's interest is bona fide, as confirmed by the banks involved and Huang himself, and talks are currently taking place at a very high level. We have never been at this stage before.

 

Comment From James

Is this transfer budget of £150m anything like reality? If so where is that information coming from and who are realistic targets?

Thursday August 5, 2010 15:09

 

Tony Barrett:

Hello James, again that wasn't my line. That piece of information came from Tony Evans who is as close to this situation as anyone. All the indications are that Huang will invest heavily in the playing squad if and when a takeover is complete. But as ever the proof will be in the pudding. Just as long as he doesn't promise to sign Snoogy Doogy I think he'll be on the right lines.

Thursday August 5, 2010 15:11

 

 

Comment From Steve

From the information you have from you're sources, what does you'e gut feeling say when it comes to the next name over the door at Anfield?

Thursday August 5, 2010 15:11

 

Tony Barrett:

I'd say Huang is clear favourite.

Thursday August 5, 2010 15:11

 

 

Comment From Pete F

Tony, Its been denied this afternoon that Kenny Huang is being backed by the Chinese state, via a statement.

Thursday August 5, 2010 15:12

 

Tony Barrett:

Hello Pete, that's not the situation as I understand it having communicated with Huang's representatives in the last hour. I stand to be corrected if there is other information available though.

Thursday August 5, 2010 15:13

 

 

Comment From Sat

Tony, How is the decision going to be made on the new owners. Its rumoured to be the board would that include the Hicks, Gillete, Purslow, Ayres and Broughton or is it just Broughtons decsion?

Thursday August 5, 2010 15:15

 

Tony Barrett:

The board will make the decision and Broughton could have the casting vote.

 

Comment From Phil M

Are there any indications how the Chinese would run the club day to day if they were successful? Do you think it likely that Purslow and Ayre will remain?

Thursday August 5, 2010 15:16

 

Tony Barrett:

Hello Phil, all the indications up to now are that there is no desire for a cull of Liverpool's executive.

Thursday August 5, 2010 15:17

 

 

Comment From Dave

Hi Tony, why do you think that Kenny Huang has issued a statement denying backing by CIC.

Thursday August 5, 2010 15:18

 

Tony Barrett:

I've just been assured that Mr Huang and his representatives have issued no such statement, although one could follow later today. I have no idea what information it might contain though.

Thursday August 5, 2010 15:18

 

Comment From Sam

Hi Tony, do you think that Hodgson is the man to take Liverpool FC forward to where it deserves to be, assuming the takeover goes through?

Thursday August 5, 2010 15:20

 

Tony Barrett:

Good question Sam. The one thing you could guarantee would be that Hodgson would come under even greater pressure if a takeover went through. If results dipped the situation could quickly become intolerable. I hope that isn't the case because Hodgson deserves the time and the opportunity to prove that he is the man to turn Liverpool around.

Thursday August 5, 2010 15:21

 

Comment From Mike

If the Chinese do take over - what's the likelihood of us retaining our unique character and ethos?

Thursday August 5, 2010 15:22

 

Tony Barrett:

That will be the biggest challenge of all Mike. For me, Liverpool has already lost a lot of its unique character in recent years and a deluge of cash could change it beyond all recognition. It would be up to the new owners to ensure they take the necessary steps to ensure this doesn't happen.

Thursday August 5, 2010 15:23

 

 

Tony Barrett:

Hello James, I've been impressed with Hodgson. He is very straight and forthright and I get the impression most people enjoy dealing with him.

Thursday August 5, 2010 15:25

 

Comment From Dave

why are we linked with journey men like Young, Konchesky and Poulsen

Thursday August 5, 2010 15:26

 

Tony Barrett:

I'm afraid that's a natural result of the manager being deprived of genuine transfer funds Dave. Unfortunately for Hodgson, he inherited a situation in which money is incredibly hard to come by and unless there is a takeover the likes of Konchesky and Young will represent the summit of their ambition.

Thursday August 5, 2010 15:28

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because then they were fighting each other, now they are fighting the banks and it's a different game. everything they've done over the past 15 months have been stalling tactics to cling on while debted up to their eyeballs with debts neither them or the club can afford. but they don't want to let go, so they hold on and stall. it's no different to what someone would do had they lost their job and can't pay the mortgage - you might have been splitting up with your wife before you lost your job, but once it was likely you'd both be on the streets you would do anything you could to keep your roof above your head. that's all C&A are doing now.

 

I am not disagreeing with you over their desperation to keep hold, but, as I say, why not release a statement 'We have a minimum price and all potential owners must agree to this'.

 

It has essentially been common knowledge that the bid is low, or certainly not as high as they were hoping, so why have they not emphasised their valuation?

 

It suggest to me that it is not in their hands, and that is the biggest difference.

 

To use a well worn cliche, the silence is deafening!

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I wonder if we're going to have to lay off the Torres bounce, with games being streamed live to China it could become a big problem if they all decide to copy.

 

Good point Dave. We could end up orbiting Pluto just because Nando puts a penalty away.

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Guest Numero Veinticinco

All it says on the FT is that no 'formal bid' has been made, doesn't it? I don't subscribe to the FT. Anybody want to PM me the article?

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All it says on the FT is that no 'formal bid' has been made, doesn't it? I don't subscribe to the FT. Anybody want to PM me the article?

 

From FT.

 

China’s CIC denies interest in Liverpool FC

 

By Jamil Anderlini in Beijing and Justine Lau in Hong Kong

 

Published: August 5 2010 14:21 | Last updated: August 5 2010 14:21

 

Chinese fans may lament the low calibre of their domestic men’s football teams, but that does not mean the Chinese government would consider buying debt-laden Liverpool Football Club.

 

A spokesperson for China Investment Corp, the country’s main sovereign wealth fund, told the Financial Times on Thursday they had never heard of a plan to buy Liverpool or of Kenneth Huang, the man widely reported to be fronting a Chinese bid to buy the English Premier League club.

 

 

UK media have reported that Mr Huang, owner of a small sports marketing company with an office in Beijing, is bidding for the club with backing from CIC.

 

But Mr Huang himself issued a statement on Wednesday night saying that although he has registered interest in investing in Liverpool, he has not made a formal bid.

 

“There has been much speculation and commentary from a wide array of people, many of whom have little knowledge of the facts,” Mr Huang said.

 

A person who has worked closely with CIC said there was “no way” the fund would get involved in such a high-profile, symbolic and potentially risky deal.

 

“Next they’ll say CIC is going to buy Playboy,” this person said.

 

A person close to Mr Huang told the Financial Times on Monday that his bid was backed by a “sovereign wealth fund from the Far East” but declined to name the fund.

 

There had been no suggestion internally at Liverpool that CIC was involved in Mr Huang’s bid, another person close to the situation said.

 

Portrayed in the UK press as a Chinese billionaire tycoon, Mr Huang runs QSL Sports Limited, a sports marketing company that is trying to develop a new basketball league in China and promote Little League (youth) baseball in a country where most people know nothing about the sport.

 

QSL’s website says the company is based out of Hong Kong and located at a prestigious address. However, when the Financial Times visited the office there was no sign of QSL and the management company of the building said no company by that name rented an office there.

 

A person who answered the phone at QSL in Hong Kong at first said the company was still at the address listed on the website, but when told that the management company of the building had denied this, then said the company had moved and its new address was a secret.

 

At QSL’s small office in central Beijing, company employees were still unpacking boxes having recently moved from a much smaller office. A staff member said the company employed around 15 people in Beijing but he had not heard about a plan to buy Liverpool FC.

 

After repeated questions to Mr Huang’s spokeswoman, the office addresses were removed from QSL’s website on Thursday afternoon.

 

An official biography of Mr Huang says he is an investor in a Chinese basketball team and in 1988 became the first Chinese college graduate from mainland China to work at the New York Stock Exchange, where he “started his career in public relations”.

 

He also founded an investment company called Rocket Capital with Leslie Alexander, owner of the Houston Rockets basketball team, and has made a number of investments in Chinese companies. Mr Huang’s spokeswoman could not confirm whether he was still involved with Rocket Capital.

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Comment From Mike

If the Chinese do take over - what's the likelihood of us retaining our unique character and ethos?

Thursday August 5, 2010 15:22

 

Tony Barrett:

That will be the biggest challenge of all Mike. For me, Liverpool has already lost a lot of its unique character in recent years and a deluge of cash could change it beyond all recognition. It would be up to the new owners to ensure they take the necessary steps to ensure this doesn't happen.

Thursday August 5, 2010 15:23

 

 

 

 

 

This one gets to me, I was thinking about it the other day. I thought, we have already suffered irreversible damage to our unique character and ethos under Hicks and Gillet, what has happened cannot be changed.

 

However, I hope whoever does own the club doesn't go down the Abramocunt, Man Shitty route. Just that the dignity of following Liverpool is restored. So the fun can return in following LFC.

 

All in all, no matter what happens, David Moores should never be welcome back at Anfield.

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A spokesperson for China Investment Corp, the country’s main sovereign wealth fund, told the Financial Times on Thursday they had never heard of a plan to buy Liverpool or of Kenneth Huang, the man widely reported to be fronting a Chinese bid to buy the English Premier League club.

 

 

UK media have reported that Mr Huang, owner of a small sports marketing company with an office in Beijing, is bidding for the club with backing from CIC.

 

A person who has worked closely with CIC said there was “no way” the fund would get involved in such a high-profile, symbolic and potentially risky deal.

 

“Next they’ll say CIC is going to buy Playboy,” this person said.

 

A person close to Mr Huang told the Financial Times on Monday that his bid was backed by a “sovereign wealth fund from the Far East” but declined to name the fund.

 

Hmmm, doesn't seem that solid!

 

It certainly isn't an official denial.

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