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| shiekhs in possible buy out | |
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| Tweet Topic Started: Jan 13 2008, 10:03 AM (58 Views) | |
chilli sauce
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Jan 13 2008, 10:03 AM Post #1 |
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Premier League
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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. 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. how is this going to affect parry and moores ? surely DIC would give them the push |
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My name is 77
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Jan 13 2008, 10:29 AM Post #2 |
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Achievement is its own reward - pride obscures it
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& they know this for sure? I would have thought you would be the last club he'd want to manage - ok Carlisle or Hartlepool may be the very last clubs, but you get my point. As far as Parry & Moores go - you make your bed, you've got to lie in it. The Observer / guardian hated Jose all time he was our manager & it seems in the stories they print now they're talking the same bollocks they always did. |
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redscouser
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Jan 13 2008, 12:43 PM Post #3 |
Championship
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The sooner these 2 jokers just get the fuck out of Liverpool the better and they can fucking well shove any ideas of making a profit on us. |
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Berethorn
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Jan 13 2008, 01:32 PM Post #4 |
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Mister B-man
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I remember one of the key reasons that Moores/Parry chose the yanks over DIC was the fact they didn't like the idea that the man DIC put in charge at Anfield would have to check back with Sameer Al Ansari for all these major decisions, leading to possible delays. Yet we see now Parry jetting off to the states and Rafa complaining about a lack of contact and communications problems. It's exactly what they were trying to avoid! My only real concern is the guarantee over LFC becoming some kind of equity plaything, being passed from one Arab investor to another. What we need is investment and board control guarantees being built into any agreement. Whoever DIC put in charge would have to be given some kind of grant or budget to work within each year, with the stadium financing kept completely separate. The Americans, well I don't mind them but they're clearly struggling. |
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Scarface1981
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Jan 13 2008, 02:18 PM Post #5 |
League One
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Well as far as I can tell the "plaything" approach seems to be working better then the current set up we have - just look at Man Citeh and Chelsea - both clubs getting much better investment than we are and better off for it. In the current climate, it would appear that you have to have money coming in - no more are the days when the club could be owned and run by the "real" supporters (the idealist in me hates me for that last sentence). So with that in mind I no longer care where the money comes from, as long as there's money for the right transfers and the new stadium. So if the Yanks can't deliver, bring on the Arabs. I will be angry if they get rid of Rafa, but I think if they give him the right money and bring in the right players we can win the league in the next 3 years at least. |
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Berethorn
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Jan 13 2008, 02:21 PM Post #6 |
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Mister B-man
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I will be very angry if they get rid of Rafa because I don't believe this situation is of his making. Unsettle the manager and unsettle the players and how CAN you expect strong performances? Chelsea had that problem at the start of the season and now look. What's the point of getting rid of Rafa and then selling up? If DIC do step in the only person I want to see the back of is Rick f*cking Parry. |
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chilli sauce
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Jan 13 2008, 02:26 PM Post #7 |
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Premier League
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well since parry was there when we chose H and G over DIC, i can't see him being asked to say on. we might headhunt kenyon :shock: |
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Berethorn
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Jan 13 2008, 02:29 PM Post #8 |
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Mister B-man
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Well if you're going to sell your soul to the highest bidder you may as well go the whole hog instead of this piecemeal shoite. :unsure: |
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Scarface1981
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Jan 13 2008, 03:54 PM Post #9 |
League One
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I think that was what H&G convinced Moores that they would do. Hell, I was convinced by their press conferences, let alone having umpteen meetings with them to get what their plans were. And lets face it, the stadium plans and buying Torres suggested they had what it took. Event since have been less promising. But at the end of the day if all their legacy is is the stadium plans that they've put in place of the old bowl design, that's something. |
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Berethorn
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Jan 13 2008, 05:23 PM Post #10 |
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Mister B-man
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IF DIC actually table an offer. I reckon our rivals have breathed a huge sigh of relief this season because of all the behind the scenes turmoil that has erupted in the club. I hope DIC do make an offer, say in April, and that we use the plans originally developed by HKS that were showcased last summer. But I also hope I'll win the lottery and David Cameron will fall under a train so what do I know? :blush2: |
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