Report: Hicks considers hedge funds to part-fund takeover

As Liverpool fans look forward with dread to the summer transfer window, a report in the Telegraph this morning claims that Liverpool co-owner Tom Hicks has been looking at using “hedge funds” as part of his plans to finance his attempt to take control at Anfield.

The report appears in the money section rather than the sports section, and points out the hedge funds approached are some of those that helped Malcolm Glazer in his takeover of Manchester United. The reports says Glazer got £275m of the £790m purchase price from hedge funds in the US, namely Perry Capital, Och-Ziff Capital Management and Citadel.

Hicks has been using Merril Lynch in his search for finance, and the Telegraph says: “Advisers are understood to have approached some of these funds recently to raise financing that would help him acquire George Gillett’s 50% stake in Liverpool and build a new 70,000-seat stadium at Stanley Park.”

Based on the lowest value usually quoted in terms of DIC’s offer for the club, Hicks needs at least £200m to buy Gillet out, which includes Gillett’s half of the total £350m finance, £105m of which is on the club.

According to the article, this type of financing is “playing an increasingly important in role in private equity financing, especially as the credit crunch has made it harder to raise debt from blue-chip banks.” It mentions retailer Peacocks being taken into private hands by its chief executive for just over £400m, and says that Newcastle were looking like being bought by hedge fund Polygon until wealthy supporter Mike Ashley stepped in.

The report says that even this “mysterious world of capital” isn’t a straightforward one, and that “at least one leading fund involved in these types of deals is understood to have rejected the opportunity to finance Mr Hicks’ plans for Liverpool.” It quotes a source: “There was an approach. It was turned down because the investment case for Liverpool is not the same as Manchester United.”

The Telegraph adds itself that “other hedge funds are understood to still be in discussions to provide financing for the deal.”

The article also points to the confusion over the alleged pre-emption deadline, saying: “Mr Hicks… has a pre-emption right that allows either man to acquire the other’s stake before it is sold to an external investor. It is said the right runs out towards the end of May, although banking sources say it is not clear whether this is in fact the case.”

If Och-Ziff are one of the funds approached then it’s little wonder they turned Hicks down. They are almost 10% owned by DIC, after selling a minority stake to them in October.

Citadel describe themselves on their website as “a leading global financial institution focused on alternative investment strategies. Founded in 1990, Citadel today deploys more than $20 billion in investment capital across multiple asset classes and investment strategies.” A 2005 Forbes article said Perry Capital were worth $11 billion.

In his much-criticised interview with Sky Sports last month Tom Hicks said he was planning to use various investors to help him buy George Gillett out. “It’s complicated, but it’s going to happen.  I can’t force George to accept but I will make him an attractive offer soon.  It’s not just the money to buy George out – I want to fix the entire financial structure of the entire club. If I’m the majority owner I could put more capital in, and I’ve got a 25-year track record of being a very successful investor around the world where I know there are people, institutions and individual investors who would like to be a minority investor with me and Liverpool.”

He also made some more bold claims: “I’ll take all the debt off the club. I want to get all the permanent financing in place for the stadium, and I want to have our finances very sound. I want to be the majority owner of a group that buys the club and fixes the balance sheet of the club at the same time, and finances the stadium at the same time.”

Buying Gillett out, covering the existing debt and funding the stadium would cost something like £700m. Perhaps Hicks’ most successful days are behind him, but one of his most well-known deals saw him buy Dr Pepper and Seven-Up for $45m before selling it two years later for $700m (around £350m). But a rumour first heard in early March claims JP Morgan, one of Hicks’ US bankers, are all but set to force him to sell his Liverpool FC share to pay for his commitments in the States.

As for what hedge funds are, descriptions vary usually depending on how scary you need them to sound. Malcolm Glazer seems to have funded around a third of his purchase of Manchester United using them, and his name strikes fear into just about any football fan. In most cases very little needs to be revealed about the details of hedge funds, leaving those sitting outside a deal wondering just what is going on. But the bottom line of using such a method for financing is that the two sides to the deal negotiate their own terms, and nobody is forcing one side to accept a deal they don’t feel comfortable with. If the purchase of LFC is made using terms similar to the worst examples then nervous times await, but it doesn’t necessarily need to be a worry at all. Whether we’ll find out the terms of such a deal, assuming one goes ahead, remains to be seen.

But what must be seen, sooner rather than later, is progress.

The word coming out of Anfield points to Rafa Benítez being given a transfer budget that may work out as the lowest in the top flight, and coming as the club have moved so close on the field to those above them it will be a huge disappointment if this summer’s transfer dealings result in the club losing ground again, but until the club get an outright majority owner there seems to be no other outcome. Hicks seems determined to find the finance, however long it takes. DIC show no signs of upping their offer, relying instead it would seem on their confidence that Hicks won’t be able to find that finance.

Further reading:

BBC News – Business – So what are hedge funds?

Times – Hedge funds on the brink as US Federal Reserve cash fails to ease crisis

Times – Hedge fund returns ‘are vastly overstated’

Independent – 1 debt is $3bn but returns are so good, hedge funds want in

Guardian – What’s really going on with hedge funds?

179 thoughts on “Report: Hicks considers hedge funds to part-fund takeover”

  1. If Hicks builds his stadium and values the club at £1bn with £700m debt on it he walks away with £300m. However, I really don’t see who is going to pay £1bn for the club. If they do its almost certainly going to be another debt based purchase which means the club will be be paying even more interest than under Hicks. Where will the extra revenue come from to pay the extra interest payments. I really fear for this club and I feel very sorry for the genuine supporters who are going to get pushed away by increased prices to pay this debt. Where is it going to end? We need long term stability. The only way is for us fans to somehow wrestle our club back.

    Please keep supporting Share Liverpool – we need to keep the dream alive otherwise we are at the mercy a dark forces we cannot control.

  2. Look around the signs are out there.

    Valencia – Since 2000 Spanish Champions, Uefa Cup Chanmpions, Champions League finalists – Selling players below their value in order to stay afloat.

    Leeds Utd – Since 2000 Champions League semi finalists, Uefa Cup semi finalists, 3rd in Premier League- now in League 1. Sold players under value, sold ground under value, sold club for virtually nothing.

    Corinthians – World Club Champions, Brazilian champions – now second division.

    All because of unsustainable debt being put on the club.

    Man Utd – the economic powerhouse of world football now £764m in debt. Making losses of £54m a year despite winning the premier league and bringing in a record revenue of £210m.

    We are not immune to financial collaspe.

  3. @Texas_Dawg: “I love the DIC news about putting a fans’ rep on the board. Hilarious.

    DIC board members: “Here is what we are going to do…”
    Fans’ rep: “I don’t like that idea. I propose that we do _____ instead…”
    DIC board members: “Ha ha ha… how cute, Fan. Your proposal is duly noted. {{chuckle}} Now, as we were saying, here is what we are going to do…”

    What nonsense.”

    That made me laugh actually. Although isn’t there a similar idea in the US with a kind of season ticket holders consultation group? Not similar as in a seat on the board, but similar as in a group of fans getting to have some input. (Even if it is just duly noted).

  4. @Yogi: There’s still a lot of dispute as to the option running out at the end of May. And Voronin was signed before the owners bought the club, before DIC pulled out the first time in fact. (He signed his pre-contract agreement in the January, so the deal was already in place, he actually arrived in the summer.

    If you believe DIC’s version of events they’re convinced that they’ll get 100% and soon. But it’s still just their version, I can’t see a reason for their unshakeable confidence that Hicks will sell to them in the end.

  5. @Jim who said:

    “In fact, following a little bit of a natural progression, how would people feel if they decided to restructure their offer, upping the bid to £600m but with £200m of it coming from hedge funds?

    Good question JB. I would probably treat it in the same way as I am reacting to Hicks, that is concern without real knowledge. I guess you could argue that 200 million in loans is better than 350+ for the purcahse of the club? You could also make the case that if DIC used one of the Hedge Funds they had a share in it would add more security, you could also argue that DIC have much deeper pockets should something go wrong to rectify things, whether they wanted to or not is another thing all together. I would hope that DIC would decide that the money they have already is enough to purchase the club. Fundamentally, thats the difference isn’t it?…DIC, whether they plan to or not, have the ability to finance things as and how they see fit, whereas Hicks depends upon loans to find the finance he needs. I wouldn’t mind tbh if DIC used loans to purchase the stadium. I accept that they are in it to make a profit, and the benefits of the stadium would effectively off-set the needs to finance it. It’s the principle of the club having to pay for the right to own itself which I really object to (but you know that already as not the 1st time i’ve mentioned it!)

  6. “That made me laugh actually. Although isn’t there a similar idea in the US with a kind of season ticket holders consultation group? Not similar as in a seat on the board, but similar as in a group of fans getting to have some input. (Even if it is just duly noted).”

    I’ve heard of similar movements or attempts in the US, but I’m not sure if any have resulted in a seat on the board. It wouldn’t surprise me though if some have. I certainly don’t think this PR move is unique to DIC, PL football, etc.

    But this stuff is all pretty much just symbolic. Does a board need some guy at the table in order to tell them that, say, most fans are strongly opposed to a coach being fired, a player not being kept, etc.? If so, then their organization is so poorly run that it is almost surely beyond the help of Mr. Fan and his lone vote.

  7. Everybody with regards to all the storys that are being reported that LFC are going to buy the Barca defender Abidal is not true just heard on Radio City that LFC have not even had scouts looking at him, there is no truth to the story.

  8. “its for a 60000 seater stadium”

    Anthony,

    The 60,000 was requested and approved to get the stadium under construction sooner. There approval also leaves room for plans to be expanded after construction starts. The final product will still be around 73,000.

  9. ” “its for a 60000 seater stadium”

    Anthony,

    The 60,000 was requested and approved to get the stadium under construction sooner. There approval also leaves room for plans to be expanded after construction starts. The final product will still be around 73,000. ”

    Dawg – I know, I seen the story on LFC live and it said a 71000 seater stadium. Then in order to be the first person to land the scoop on the site I posted it without reading it. Then I went to look at the story and get the link where I seen that it was only a 60000 seater stadium, if you look below that post you will see where I corrected myself.

  10. @Jim,

    Hahahaha!

    Actually I lied, the stadium is going to be down-graded (can you change that to “different”) to the original AFL design @ 60,000.

    Furthermore, although I implied there would be no debt, actually the debt will be partly placed on the club and partly on the holding company – ‘Does This All Feel A Bit Familiar Holdings.” Unfortunately, despite promising the fans that I would back Rawww-for (rafa) to buy ‘Snoopy’ if he asked for it, unforunately all he is going to get is ‘Peanuts’.

    I’d also like to state that i’m definitely going to back Rawww-for. I believe he’s the man to take us forward. Mind you, if I catch wind from ‘The Daily Star’ that he might be off to Real Madrid then I might need to make contingency plans, just in case you understand. I’ve never heard of him myself but I hear Rick Astley is a very impressive individual – word has it he’s Never gonna give you up, Never gonna let you down, Never gonna run around ,and desert you…

    Anyway, I’m confident that I can make this the best ‘franchise’ in the world as i’ve discovered a mysterious material to make official LFC mugs out of.(a material, not scousers).The brilliance is that the moment you finish your beverage of choice, the mug implodes! …and you have to buy another one, which is why whenever you see one, it’s brand spanking shiny new. Because I believe that all Liverpool supporters drink gullibility juice regularly, selling enough mugs to make me even richer shouldn’t be a problem!

    😉

  11. GOOD NEWS!

    (Reg the new stadium…)

    Liverpool City Council Planning Committee has made a smart (aka cheeky) moves!

    Read between the lines people… long story short… the ball now is in hicks court!

    I believe with this moves, the LCC now has a say in this whole saga since the approval has been given and with current world credit crunch… the pressure now is in Hicks camp to ‘put the spade on the ground’.

    Kop Holdings, KFC or whatever the joined company that owns LFC right now is believe to have only 60mil to start building the stadium (which might be less if reports are true that the drawing by HKS costs 20mil).

    That’s kinda 320mil short, doesnt it? 🙂

    Well, give me your acc no. hicks… i’ll contribute a tenner, not!

  12. ” I believe with this moves, the LCC now has a say in this whole saga ”

    Massive RED – Liverpool City Council can start to demand answers as public money in the form of grants is going into the development. They can threaten to take the grants away if building does not start soon.

    Has anyone heard how Freddy Flintoff got away with driving at 87MPH in a 50MPH zone, takes the piss!

  13. In response to those cynical comments above at the supposed hilarity of having a supporter on the board, and just how untenable they assume it will be, I’ll offer a personal example of how such a situation was effective. Years ago, I sat on a volunteer board for a housing co-operative for people dealing with social, psychiatric and health debiltations. In addition to the six of us from the outside, who each brought in expertise on management issues, the board also had two residents from the co-op. The two resident representatives were included to speak on behalf of issues that affected people whose day-to-day lives were impacted by the decisions of the outsiders. If ever there was an order of business where confidentiality was paramount, then the meeting went in camera and the two resident reps left the room.

    I realise there’s a world of difference, business-wise, between this small housing co-op and Liverpool Football Club. Nonetheless, the principle could still remain the same. Whether or not that LFC supporter would have voting rights, they would still be in a position to speak on behalf of those who give their money, time and passion over to the club. Maybe it’ll be Kenny Daglish, maybe it’ll be Rogan Taylor, maybe it’ll be Josephine Scouser from down the pub (had to give us girls a fair chance there). It’s elitist to assume that someone from outside the usual corporate board paradigm would have nothing to contribute.

    raju (GPROB – Grand Poobah of the Royal Order of Brats): does Rafa have the authority to prevent the Argentine lads from going to Beijing?

  14. @Martin: “It’s the principle of the club having to pay for the right to own itself which I really object to (but you know that already as not the 1st time i’ve mentioned it!”

    DIC apart, who might still have used some debt for the purchase anyway, were there any other potential backers who would have bought us without debt? The reason I ask is (not the 1st time I’ve mentioned it either!) is that the use of debt to buy the club, albeit at a holding company level, was known about on takeover. I just wonder if Moores and Parry had resigned themselves to that being the case whoever took over.

  15. ” In response to those cynical comments above at the supposed hilarity of having a supporter on the board ”

    Julie (Toronto) – I think its the comment made by someone who obviously sees themselves to far above anyone alse, so far infact that they would just laugh at such stupid remarks. ‘Let them eat Cake!’

  16. Martin: “I’ve never heard of him myself but I hear Rick Astley is a very impressive individual – word has it he’s Never gonna give you up, Never gonna let you down, Never gonna run around ,and desert you…”

    LOL. That made me spew tea all over my keyboard in laughter. Not a pretty sight, but totally worth it.

  17. @Massive RED: The plans were always due to be approved (or not) this week, and it would be difficult to refuse them given the regulations that surround planning permission (I’m told).

    That about the drawings costing lots of money, £18m is the figure I’ve heard most, wouldn’t surprise me, but the goalposts keep moving as to which pot it came from. Some say the £45m transfer/working capital pot, others say it was spent before that pot existed, and now there’s the idea of it coming out of the £60m.

    This is the problem we face in trying to work out just what’s going on – we keep getting so many different versions.

    Also the cost for the stadium has risen in reports, from the £300m reported in January to the £350m reported now. I see no evidence that is has really risen, just that the reports have evolved that way.

  18. @Jim. Not as far as I know, no. Another – not the 1st time i’ve mentioned it! – statement is that backing DIC by default just because we don’t want Hicks is a pretty ridiculous manifestation of the current situation we are in… Following on from what you said, isn’t that basically what Moores and Parry did?!

  19. @Julie (Toronto): I was laughing at Dawg’s example, rather than whether it will happen or how effective it could be.

    I think if it was Kenny Dalglish then that’s hardly what’s implied by the SOS statement.

    If it’s Rogan Taylor you’d be surprised how many supporters wouldn’t be at all happy.

    But there’s a lot to consider about who it would be. It would have to be an unpaid role, except for expenses etc, otherwise it’s not an independent fan. Quite how that fits in with it being someone with the knowledge to understand all the complexities in the boardroom without losing their current job is hard to tell. In fact I’ll stop there – it’s not something to be taken lightly.

    Earlier versions of the idea were for some of the board to meet up with a group of fans rather than have a fan on the board, this version is very recent.

    Not sure about Josephine Scouser either. Wasn’t she in the paper over something or other the other day?

  20. @Martin: “Another – not the 1st time i’ve mentioned it! – statement is that backing DIC by default just because we don’t want Hicks is a pretty ridiculous manifestation of the current situation we are in… Following on from what you said, isn’t that basically what Moores and Parry did?!”

    “Ridiculous” should be the subtitle for the end-of-season DVD.

    But at least it’ll be full of sublime Torres goals.

  21. Jim, In all seriousness – how about yourself as the fan’s representative on the board?!?!

    Think about it – You are in a great position to mediate between the fans and the board, exposing any mis-truths, and you can use the phrase “the very knowledgable Martin said…” every time there’s a board meeting! hahaha

  22. Jim: poor Josephine, that girl never could catch a break – I’m sure there’s a perfectly plausible explanation why she was found naked on Torres’s roof singing Abba songs at the top of her lungs.

  23. @Martin: I could blame you for anything difficult that I had to announce.

    @Julie: Her explanation was she was the only one who got caught.

  24. Fan representation is not a bad idea. The question is how it is done. And it will only work if you want it to work.

    Fan representation on the board is no different in my view to having council tenants sitting on the board of Arms length Management Organisations (ALMO’s) which run Local Authority Housing Stock. They have an important role to play in terms of making sure the tenants views are heard and voting in a direction that supports this. The issue is making sure they have sufficient experience and backbone to not simply go native.

    Texas_Dawg and people like him, like the idea of making money but despise the idea of ordinary people restricting how capital/money men make decisions if it is not in the overall interest of the local community.

    I say to Texas_Dawg, instead of dismissing this totally out of hand, think carefully of how Mr. Hicks – who’s failed miserably at engaging with us real fans – make look at increasing our involvement rather than looking at us as cash cows! Unless of course, he has something to hide!

  25. midlands-red: “I say to Texas_Dawg, instead of dismissing this totally out of hand, think carefully of how Mr. Hicks – who’s failed miserably at engaging with us real fans – make look at increasing our involvement rather than looking at us as cash cows! Unless of course, he has something to hide!”

    Spot on!

  26. “Dawg – Who do you reckon will win between Clinton and Obama? And who do you want to win the presidential elections?”

    Don’t know, don’t care, and I hope they all get eaten by alligators.

    Dawg – How much are the TV deals worth per year in American sport, and how do they compare to the premier league?

    Depends on the sport and I’m not sure how each compares with the PL deals.

    I say to Texas_Dawg, instead of dismissing this totally out of hand, think carefully of how Mr. Hicks – who’s failed miserably at engaging with us real fans – make look at increasing our involvement rather than looking at us as cash cows! Unless of course, he has something to hide!

    He heard the fans and is fully behind Rafa, midlands. Didn’t need anyone on the board to make that decision either. (The fan on the board thing is just silly pandering.)

  27. Dawg – Have you ever been for psychiatric help and been given the diagnosis of being a pathological lyer?

    No. What did I lie about, Anthony?

  28. Or have you ever heard of a story called Pinocchio?

    Because I know some one who is very good freinds of Hicks and he said that you are telling pork pies.

  29. here is a link to a good radio show which features LFC as well as EFC but you can take part as its interactive, on mon and tues 7pm -9pm, on air know I will remove the www’ because it will not post otherwise.
    bbc.co.uk/liverpool/

  30. Dawg – I am only jokeing, I do not know any one who is any way aquainted to Hicks, and of course I believe you when you say that you are Hicks christmas card list.

  31. TH has been in the market looking for new funds for sometime now and the announcement that hedge funds have been approached is no surprise. They were approached before and asked TH to sweeten terms, now he is back again in a significantly weaker negotiating position.

    As mentioned in previous posts, TH approached a number of private equity funds whose cost of capital is lower than the hedge funds who desire much higher and secured returns. i.e. higher interest rate and accelerated repayment schedule. TH is unlikely to find a long term financing solution for LFC and at best can only secure short term funding at very high rates. The hedge funds are glorified money lenders with a short holding period!

    To reiterate, DIC is funded by sovereign wealth and its investment horizon despite contrary claims is much longer – typically 20 to 30 years since they are laying the foundation for long term wealth creation. Therefore under their plan they could ‘lend’ money to the club at single digit interest rates. On that basis they can afford to pay more than £500m for LFC.

    Hedge funds on other hand typically have a 5 to 7 year life and have return capital to their investors within that period hence the higher cost of capital – min. 15% but in today’s market more than 20% even on a secured basis. If anyone doubts this please call any hedge fund manager and ask!

    Although some doubt, i remain confident that TH and GH will not be in control of the club by July 2008. TH is not interested despite his statements in long term ownership. Once he can put together a financial package at a higher valuation he will use that to grind a higher price from DIC.

    Even at £500m its a bargain! I know i am repeating here, but i am so astounded how Moores sold out so cheaply! I have never met the chap and have heard many nice things, but does he have any commercial acumen? Surprised further by the poor advice dished out by Mr. Parry.

  32. ” Hedge funds on other hand typically have a 5 to 7 year life and have return capital to their investors within that period hence the higher cost of capital – min. ”

    ” Although some doubt, i remain confident that TH and GH will not be in control of the club by July 2008 ”

    Dawg – You see I told you so! His last throw of the dice.

  33. ” but i am so astounded how Moores sold out so cheaply! I have never met the chap and have heard many nice things, but does he have any commercial acumen? ”

    Adam Tomkin – You are not the only person who has said that. They must have seen Moores coming. Nothing has changed apart from the debt on the club.

  34. @ Adam Tomkin – welcome back!

    As I said before I know little about Hedge Funds but what I do know is that they carry high risk or rather demand high rates of return.

    From the outset Tom Hicks mentioned nothing about Hedge Funds. The fact that he’s willing to go down that line suggests he’s desperate. There can be no other reason for going down that line

    @ Texas_Dawg – so Hicks wants to keep Rafa. That is really great news. But – regardless of who was considering ousting him – Rafa was always going to remain. In any case, it’s not about the Manager. This is about the long term future of the club. And that’s where Hicks is lettimng himself down – amongst other things of courese.

    Jim has actually provided alot of balance to the Hicks, Gillett and DIC debate. But I sense this Hedge Fund stuff makes him wonder what Tom Hicks’ playing at? Or rather, it now makes it blatantly obvious what he’s playing at? Anyway, what say’s you Jim?

    @Adam Tomkin – If they – Hicks and Gillett – can be gone by July 2008 then great. But I’ll take August 2008, ’cause Hicks by any means necessary to get the funds makes me nervous _ unless Gillett holds firm, which I think he will (if he can).

  35. @Adam Tomkin: “On that basis they can afford to pay more than £500m for LFC.

    That’s possibly part of the problem – Gillett has so far refused to actually sign up to sell to DIC, and perhaps that’s down to him feeling he can get far more out of them.

    Even at £500m its a bargain! I know i am repeating here, but i am so astounded how Moores sold out so cheaply! I have never met the chap and have heard many nice things, but does he have any commercial acumen? Surprised further by the poor advice dished out by Mr. Parry.

    That remains one of the mysteries of this whole saga so far. And add to that the various other supposed LFC supporters who were sniffing around for years – in hindsight I wonder how many of them would have considered joining forces to buy the club in a similar way to the method used by Hicks.

  36. I have said all along that a hedgefund would not be interested in this deal as its not somthing they would want to waste their time with. Hedgefunds hedge their investments, they get a company and ride it while its share increases and then they sell. Its like the film a good year, they get the stocks when their low, they make the firm more profitable, then when the stocks reach the highest they can get or they reach a high point they sell, and that is where you get the term HEDGE. Its like a surfer riding a wave, they get a wave and ride a wave and get of at the end.

  37. Do you want to see somthing that will bring a tear to your eye’s, you may have seen it already but there’s no harm in watching it again.

  38. @midlands-red: Jim has actually provided alot of balance to the Hicks, Gillett and DIC debate. But I sense this Hedge Fund stuff makes him wonder what Tom Hicks’ playing at? Or rather, it now makes it blatantly obvious what he’s playing at? Anyway, what say’s you Jim?

    I know what you’re saying MR, but it doesn’t make anything blatantly obvious really. It’s another one of those reports we keep reading. Some of them must have some truth in them but we’ve had so many. And if it’s true, how true is it?

    This reporter, a financial journalist, has written a few articles of interest though:

    He wrote/co-wrote these two articles on Mike Ashley, the Newcastle shirt wearing owner:

    http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/24/cnash124.xml
    http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/02/05/cxmktrep104.xml

    And this one on us, dated New Year’s Eve:

    http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/12/16/cnlfc116.xml

    (he talks about the stadium costing £450m in this story, which by December 31st we knew it didn’t.)

    Here’s one on the Glazers, from June last year:

    http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/06/09/cnmanu109.xml

    No idea what purpose it serves posting that lot, but it might pass a bit of a quiet morning in work tomorrow for someone…

  39. jim, i was listening to the This Is Anfield podcast this afternoon, and Chris Bascombe was one of the guests. I know how much you respect him as a journo (or did, I haven’t seen you mention him recently), and I think we all know he probably has as much info as any outsider on what’s going on at the club, so I was wondering how you can account for the fact that he thinks Tom O’s sole ownership of the club would be disastrous, and that he thinks that DIC will buy Gillett’s half in may, then squeeze Tom O out (though in truth, the logic behind the squeeze out seems pretty weak to me). And that major players will speak out against Tom O if the situation is not resolved by the end of May.

    also, on the Times podcast, Guillem Balague said that Gareth Barry would be the major arrival for Liverpool this off-season, (with him financed by player sales as we already know) meaning that not only will Tom O and Georgie not be putting money in, they will be taking assets built under the previous ownership. the money that normally would have gone to finance players transfers (the 20m or so of the pervious years) is going to pay off the loans that those shysters took to buy the club, thus leaving nothing for rafa. and i think that he is calm about it now because he knows the shit storm that is going to break out in late may if DIC have not bought Gillett’s stake. and we all know that regardless of your demand for answers from DIC, the supporters wrath will be directed at Tom O Hicks.

    . i would love to see the numbers on the sales of the new kit. especially UK sales. for me that would be the prime indicator of how the supporters are reacting.

  40. Cory, good – and understandably disenchanted – post.

    While Jim’s at it, Texas_Dawg might want to comment as well!

  41. @Cory: I’ve not listened to the podcast. When you say “major players” do you literally mean players, as in playing staff? It’s happened already although it’s being allowed to remain low key for now, and that’s why I’m not going to discuss that particular player on here just now. For his sake.

    CB isn’t the only Liverpool-supporting reporter to want Hicks out. And CB doesn’t deal with the PR firms either. He’s a good journalist and probably the only one to stand up last year and ask why DIC had been treated as they reportedly had been, or more to to the point asked why Moores and Parry had it seemed suddenly u-turned.

    This idea of forcing Hicks out continues to be claimed as DIC would put money in for say the stadium, then Hicks would have to bail out because he couldn’t fund his half. But as I’ve said before, I can’t see why this wouldn’t be the case now with TH putting money in over and above what GG could afford.

    What Balague says sounds like what I was talking about the other day, but probably comes ultimately from the same source. Which doesn’t mean it’s false of course, in fact it sounds pretty plausible to me.

    Kit sales figures will be interesting, you’re right.

Comments are closed.