Hicks delays Glorypark due to “extreme conditions”

A press release issued in Dallas overnight UK time will add more weight to the claims that Liverpool FC co-owner Tom Hicks will not be able to find suitable finance to purchase the other half of the club from partner George Gillett.

The Glorypark project in Arlington, Texas, is to be delayed due to financial concerns.

The Dallas Morning News quotes Hicks as saying: “We’re in the most difficult credit crunch I’ve seen the last 20 years.”

The press statement, from Hicks Holdings, said that “financing and construction of a proposed mixed use development between Rangers Ballpark and the new Cowboys stadium in Arlington has been put on hold because of ‘extreme conditions’ in the country’s financial and retail markets.”

Glorypark, Arlington, TexasIt goes on to say that “the nation’s economic markets today have made it impossible to come to terms with lenders for Glorypark, a half billion dollar (approx £257m) project.”

Hicks Holdings’ development partners on this project are Steiner +Associates, and the statement says that S+A have “been unable to secure a firm and final commitment from an anchor department store.” It’s reported in the Dallas media that S+A have been in lengthy discussions with Dillard’s department stores.

Now, the statement says, “The developers do not plan to exercise a May 15, 2008 option to extend a letter of commitment to underwrite bonds for roads and parking garages. As a result, construction mobilization will not begin this spring as planned.”

Tom Hicks is quoted in the statement: “We have put an enormous amount of time and money into Glorypark. In the end, the dream can’t become reality without the right financial package. We will pursue alternative funding options and examine our reprogramming options.”

Hicks compared it to another project he was a partner in, the Victory Park project, a similar initiative sighted alongside the American Airlines Center, home of his Dallas Stars NHL side. “This is extremely disappointing to me, personally,” Hicks said. “It’s almost the exact situation we had at Victory when we were ready to go, but the financial markets were in deep trouble after 9/11. That’s when we had to regroup.”

Of the Victory Park project, the statement says: “After two years, Victory did re-emerge although the project has evolved and continues to evolve.” Last week Ross Perot Jr’s company announced their plans to build a 43-storey hotel on the Victory development were being delayed, also due in part to the condition of the financial markets.

Hicks said in the statement that the land between his Texas Rangers baseball stadium and the new Dallas Cowboys stadium would still be developed: “When my family purchased the Rangers, we pledged to invest in a development around the Ballpark. We are still committed to doing that, but we may have to re-examine what should be built and what actually can be built if the market conditions continue.”

Hicks said he contacted Arlington’s mayor, Robert Cluck, about their decision: “These events are in no way related to the City of Arlington. The city did absolutely everything possible to facilitate negotiations while, at the same time, protect the taxpayers’ interests. We all must take the long view for this important piece of real estate between two great sports venues.” The Fort Worth Business Press says: “The city of Arlington has approved several zoning changes to make way for the development and the city had planned to contribute about $135 million through various taxing districts.”

According to Hicks, the developers will now be most likely to concentrate on attracting dining and entertainment businesses to the site: “We have had enormous response from those business segments at Glorypark. I believe reprogramming will produce a plan that is more incremental and includes those elements as well is specialty retail, residential and office components.”

The statement says that Hicks Holdings has invested “almost $50 million into the improvements, design studies, and master planning of the area around the Ballpark.” It also says “plans will continue for the development and opening of the 310-room Westin Hotel and condominium project that was previously announced by Hicks Holdings and Gatehouse Capital. It will be located across Johnson Creek from the new Cowboys stadium.”

Glorypark was due to open in March 2010. The Dallas Morning News talks about how Dallas and the rest of the US have felt the pressures of the current financial environment: “Since last summer, lenders have increased requirements for virtually all types of real estate loans. And some debt sources that previously financed office buildings, hotels, high-rise condos and such have exited the market. The so-called credit crunch is expected to significantly reduce the amount of speculative development this year in Dallas and cities across the nation.”

According to the same paper, this isn’t the first holdup to the project: “The completion of Glorypark, which would have included restaurants, retail, office space and residential, had been delayed at least twice previously.”

As well as needing to raise investment of around £200m (approx $389m) to buy George Gillett’s half of Liverpool FC, Hicks also needs to raise the funds to continue with the building work on the club’s new £300m (approx $584m) stadium, due to open on Stanley Park in 2011. £60m is already in place to commence the work, but the other £240m (approx $467m) still has to be found.

Much can be read into this announcement.

On the one hand it does add weight to the various claims Hicks had been struggling to get finance for his Liverpool FC needs, but on the other hand it suggests the Texan could now be in a stronger position to get the finance for LFC – the total borrowings of the Hicks Holdings group of companies won’t now include this figure in the immediate future.

Again, on the one hand this announcement adds weight to the claims that the US banks Hicks does business with have been looking to call time on his borrowings, but on the other it could be said that recent talk of Hicks approaching hedge funds related to his quest for finance for Glorypark rather than Liverpool FC.

Is it possible Hicks has sacrificed this phase of Glorypark for now in favour of finalising the LFC situation?

The fact remains that Hicks is adamant George Gillett cannot sell without his say-so. This would leave Dubai relying on Hicks hitting financing problems as their only means of getting control of the club. If their assumption turns out to be true then sitting it out could eventually see them take control for the figure they’ve already decided is their top price. But if their assumption is wrong, and they don’t make a substantially higher and tempting bid, George Gillett may just go back on his vow not to sell to his partner rather than sit in this state of limbo for too long.

Further reading:
Star-Telegram – Hicks puts Arlington’s Glorypark development on ice
Fort Worth Business Press – Arlington’s Glorypark development on hold
Dallas Morning News – Arlington will have to wait for Glorypark development near stadiums

193 thoughts on “Hicks delays Glorypark due to “extreme conditions””

  1. ” The tickets were arranged for us by the Liverpool owners ”

    If Dawg is so well aquainted to Hicks why does he not refer to Tom. He refers to the ‘Liverpool owners which would imply that he does not know tem.

  2. ” I was also trying to guard my wife from the people behind us that a couple times had to use our backs and heads from falling a couple rows forward in their celebrating. ”

    I have sat on the Kemlyn road ansd when there was a goal scored I never got pushed fowrard nor did I ever have to defend myself. When I have stood on the kop maybe but not in a seated area.

    ” wear good shoes. Expect to stand the whole time. Mostly male crowd but people kept separate so not lots of instadium brawling. ”

    The statement about people being kept separate is not true. People are no longer kept separate in football stadia.

  3. Anthony, The picture on the link isn’t one that he took as you quite rightly pointed out – he got it from Wikipedia. But he never claimed that it was his photo did he?! In fact, the original post was made on Wednesday the 8th of August headed “Hadnot and I are going to the Liverpool/Aston Villa game Saturday…

    How could he of taken a photo of something he wasn’t going to for 3 days? The photo was for illustration purposes only, which explains why he claimed he was actually in the Liverpool end and the photo was the Villa end.

  4. P.s. Hicks’ franchises are all underperforming flops. Records speak for themselves I’m afraid.

    Stephen,

    A Detroit Redwings/Liverpool fan from the US (I forget his screenname) already backed me up in pointing out that this statement is false. The Dallas Stars have been one of the top 5 winningest teams in the NHL over the past 15 years.

    Is hadnot, Hick’s son that he was having conversations with then why would Hick’s son sit in the cheapest seats in the Villa end.

    Anthony,

    “Hadnot” is a friend of mine who lives in London. My wife and I were in London to stay a few days with him before heading on to Barcelona for a few days on our vacation last year. EPL opening weekend so I let Tommy know and he had the tickets waiting for us at Villa Park. (The picture I included was before the game (see the date of the post… as Martin noted: before the game). I just got it from Wikipedia as noted above.)

    You’re trying too hard here, Anthony. This really isn’t that big a deal.

  5. I think he meant Hicks Jnr tho…

    Correct, Martin. Tommy was in Liverpool the next weekend for the Chelsea game. I would love to have gone to that one too, but the game was on Sunday, and we were flying back to the US that day.

  6. And, Anthony… you being the fan of random information that you are :-) (as am I, by the way) … my friend’s “Hadnot” screenname comes from Butch Hadnot, a running back for the University of Texas… where my friend (as well as Tom, Jr.) went to school. (I try not to hold that against them though. :-) )

  7. ‘…the internent is full of cranks…’

    Another delicious quote.

    Keep it up TD, unlike those of certain others, your posts are generally worth reading.

  8. Some rumours going around we might be about to sign Andrea Dossena from Udinese. He’s a fair quality left back 26 years old who has one cap for Italy. Probably be part of Euro 2008.

    Not sure if its great news, but its definitely good news if true, I reckon he’s better than anyone else we have in that position at the moment. Oooh imagine it, an eye-tie defender lol

  9. Oops scratch that last comment about Dossena being part of Euro 2008 – I just checked he’s not in the squad.

  10. Ghsoh! You guys’ve been busy since i last visited the site!

    @ Jim Boardman

    “Maybe it wouldn’t have made a difference, but to me it’s human nature that if you’re getting that kind of abuse you’ll either pack up and leave, stripping the place as you go, or you’ll close the windows, arrange some extra soundproofing and carry on regardless, in defiance of the protests. Seems that in this case the second one has happened.”

    Seems to accept a shift in Hicks position?

    If Hicks had the money, or wasn’t seriously affected by the credit crunch (and today I read the construction industry is already feeling the pinch from (the lack of) private and public sector contracts) wouldn’t he be doing more than being defiant. He’d be doing a Shinawatra _ throwing his weight around.

    Speculation aside, where’s more on-the-record Hicks/Gillett/DIC quotes. I’m getting hungry over here!!!

    Question (for anyone who knows): What length of contract has Sammy Lee got?

    Trying to piece together my very complicated analysis – well, actually, it’s very simple – on whether it means Rafa’s going to get a new contract and soon (now he’s sorting out his backroom staff).

  11. As proved earlier by the poster that had 3 ids and had conversations with themselves, you can be anyone you want to be on here. Go to any forum use their log in name here and wahey people assume you are the person from the other forum.

  12. @midlands-red: You can’t go to sleep around here any more MR, you never know what you’ll miss! Actually you do – same old same old really!

    Not sure what you mean by “seems to accept a shift in Hicks’ position”. What I’ve always tried to say in this is that the range of possibilities over how the ownership can go isn’t as narrow as it’s often painted. Just as all the “JP Morgan to force Hicks to sell LFC” style stories can be true, so can a large number of alternatives. One version of the “JP Morgan to force Hicks to sell LFC” stories said it would happen as soon as we went out of the CL, another one was as soon as the season ended, and time has shown us that at least that detail didn’t happen.

    That’s the problem really – we’ll probably not know the truth of any claim until it actually happens, or until the whole saga comes to an end. I’m now 100% sure there is no end-of-May deadline in place, even if that might be grounds for someone to be sued for negligence, but short of all parties going on record to confirm it the only other way we’ll know is when we get to June 1st!

    We can only go off the information we get as to what’s happening. On-the-record quotes are almost as rare as a Rob Jones goal.

    In the meantime people still fall into the trap of thinking every negative story about Hicks has to be true, every positive story about Dubai has to be true. The Malouda story – we’ll be buying him if DIC take over – was an obvious example. A lot of people actually believed it. And hardly anyone questioned the root of the story. It came from the only newspaper we officially boycott, the one we’ve boycotted for 19 years, but far too many people glossed over that because it fitted in with the Hicks-out agenda.

    If a similar tale had come out, printed in the Mirror say, linking us with some other £10m player, but only if Hicks took over, it would have been laughed off on the spot and allowed to fade into the usual transfer window pit of dodgy rumours.

    The same kind of logic goes into every story, rumour, claim etc over the takeover. The hedge funds story was printed in one paper, with from what I recall a quote from an unnamed source, in an article that mentioned at least one company currently owned by DIC as having been approached by TH. He might have approached hedge funds. He might have asked them for the 1%, having found the other 49% from a more standard type of investor. Or the percentages may have been swapped around. Or he might not have actually gone. No other newspapers have added further evidence to that story by getting quotes, named or unnamed, from their own hedge-fund sources.

    Yet now it’s become an accepted “fact” that Hicks approached hedge funds.

    How many other Tom Hicks or DIC stories are just financial equivalents of Didier Baptiste?

    With regards Sammy Lee, I understand what you’re saying, and I’ve not been able to find out how long his contract is for. I’m not sure how much we could rely on it for an indication of whether Rafa’s on for a new contract. Obviously if Lee’s here for 3 years then it bodes well for Rafa, but if it’s only for 2 then it still doesn’t mean no contract will be offered. Lee’s hardly going to come out and say “I wanted 4 but they gave me 2”, or for that matter “I was unwilling to commit to more than 1 year until the ownership is resolved”. Maybe we’ll hear something in the next day or two, but even then we’ve got to take it all with a pinch of salt.

    No matter what people think of Hicks, I think most will agree we dodged a bullet with Mr Shinawatra (although I’m basing that on stories I read about him that could be complete fabrication, I’ve not really looked that closely!)

    One other thing, I get the feeling this Glorypark development means as much to Rangers fans as the later retail developments in Kirkby will mean to Evertonians when (if) their stadium gets built. If their owner was a partner in those retail developments out there, I couldn’t see bloos shouting from the rooftops about how disgusted they were that a new John Lewis / Primark shop wasn’t now going to happen.

  13. Dawg – Jim had a conversation with three people who he caimed to be involved in a witch hunt with. The fact that you have put a few random quotes on another forum does not mean jack to me. On top of all that the way you get so defensive about people not believeing you is also a dead give away that you are stringing people along. It wouldn’t be the most dificult thing in the world to invent a few people on a website and then join a forum and start giving people the run around on that site and use another site to back up your story. Criminals do that kind of thing all the time to give themselves an alibi. I do not personaly believe that Hicks would associate with people who would spout off on LFC forums by claiming to know them, and if they did they would definatly tell you to tone down the way you have shown no respect to any LFC fan on this site. You have come on this site and shown no empathy to any of the LFC fans and have just sat on your high horse with substanceless claims which in truth have very little meaning, and provoked alot of bad fealing towards Hicks and Co. And it for these reasons I believe that if you did know Hicks and Hicks knew that you was being so arrogant towards LFC fans in the way you have been in his name he would have told you to put a sock in it. You just get under my skin sometimes the way you act like a wooden spoon everytime someone has an opinion on the situation, and you come in as an apperently informed person on the subject and shoot everyone down. You remind me of Drogba with his diving.

    With regards to the photo I actually noticed the date last night but I was to tired to be arsed commenting on it.

    But as I said earlier I do not mind you, I just take you with a pinch of salt.

  14. What are the pedictions for the FA cup today? I am looking forward to it more today than I would if Manc U or Chavski where in it.

    I think 2 – 0 for Portsmouth.

  15. phillfc // May 16, 2008 at 8:59 pm
    Texas_Dawg, I think you give a biased veiw, but if i was in your shoes i´d do the same!! I wouldn´t stand by and watch people have ago at my mate, however, you must admit that H&G have almost destroyed the club from the inside, you do not go to the press about your partner you do it in the Boardroom, where you´d have 100% of his attention… When you Lie, you lose respsect, for me, you don´t say at the Press Conferance that you and your Partner will not do a Glaizier and dump debt on the club, and then later you do the opposite and Dump Debt on the club!!! Hicks and Gillett said we will buy players on the same scale as that club to the East of us…i.e Man Utd, well i am waiting, and don´t say Torres was a product of that, as that was done because Benitez made that money up from sales and from what Parry and Moores made available, not H&G…could you shed some light on this…

  16. Hello, i have added my post again as it was ignored, some people on here tend to only concentrate replying to the same posters, only Jim and Texas_Dawg have answered me in the past, a forum is a good thing, at least try and include other people in the conversations, i may not appear on here alot with my opinion but i check it out every day

  17. phillfc – Yeah but Phil if your ‘mate’ was the owner of a football club then you would have to accept that some people will critisize you no matter what. You would not be so bothered you would get someone on a forum claiming to know you defending you.

  18. I’ll be hoping Cardiff win, would be nice for them. I’ll also be keeping an eye out for Robbie if he gets a kick (I heard he was in the squad) and for Aaron Ramsey.

    Either way at least its one the Mancs won’t be winning :)

  19. Yeah I’ll be watching, kicks off at midnight here which is no dramas. Its the 2am kick offs that are really tough!

  20. Hi Anthony, its nice to share opinions and get things of your chest, i basically talk LFC all day, every day, my wife is sick and tired of it, so i go to sites like this, and talk with like minded people, because it is another great day in LFC Land!!!
    I respect the opinion of T_D even though i don´t like Hicks, it is another way to understanding him (Hicks)
    We are in a position through the web to talk to people around the world, and for me that means promoting LFC and what we stand for… you have to understand that what you say in some ways does actually get back to Hicks or Hicks jnr, the very people that you shout about are, i imagining reading what you write.
    but its good speaking to you.

  21. phillfc – What I was talking about with regards to Dawg was the other day I was listening to BBC radio Merseyside. Alan Jackson said on the show that he believed that this whole saga with the two yanks was just a ploy to get more money out of DIC. Dawg then posts some nonsense saying that AJ was speaking out of his backside. He fired a broadside at the post. His post just seemed very confrontational, he appeared to just be stirring it, to go along with a little game that he is playing, there was nothing inteleigent to what he said. I believe that if Hicks did want to understand the feelings of the fans he would not behave like Dawg, he would pretend to be a Liverpool fan and court as many different responses by pretending to be one of them. Not by being cocky like Dawg has been. Dawg has caused Hicks more problems on this site than he has solved, and I do not believe that Hicks would want anyone stirring it on him like Dawg is doing.

  22. Texas Dowg – The records speak for themselves!!

    Stanley Cup Winners

    2000–01
    Colorado Avalanche (WC)
    2001–02
    Detroit Red Wings (WC)
    2002–03
    New Jersey Devils (EC)
    2003–04
    Tampa Bay Lightning (EC)
    2004–05
    Not awarded
    2005–06
    Carolina Hurricanes (EC)
    2006–07
    Anaheim Ducks (WC)

    That’s 6 different winners in 6 years!

    Losing Finalists

    2000–01
    New Jersey Devils (EC)
    2001–02
    Carolina Hurricanes (EC)
    2002–03
    Mighty Ducks of Anaheim (WC)
    2003–04
    Calgary Flames (WC)
    2005–06
    Edmonton Oilers (WC)
    2006–07
    Ottawa Senators (EC)

    That’s 9 different teams in 6 finals. Must be really difficult to break into that monopoly!!! Hicks is a genius the way he’s developed the Stars to not be able to get a piece of that action!!

  23. @Jim “In the meantime people still fall into the trap of thinking every negative story about Hicks has to be true, every positive story about Dubai has to be true”

    I haven’t believed one story in the press for many months.

    Look at the facts since Hicks has taken over. That is all any Liverpool fan needs to do to be disgusted with his running of our club. The facts are there Jim. Please forget about the Press and look at the way the club has been run!! More of the same? No thank you.

    I’m sick to the teeth of his lies, disrespect, back stabbing and public fighting. The man has no class. He’s a two bit hustler. We all know it by nothing more than his actions. He has to go (they all do – but if he goes all will follow – Parry, Moores and Gillett – and good riddance). He’s the key hence he gets most attention.

  24. As is always the case Stephen hits the nail on the head. 1 word sums up hicks and gg LIARS simple as that forget everything else. They have lied to us the fans, the most important aspect of any club.

  25. Right on Stephen,
    Hicks’ current position is stiffling the development of the club, there is no effective management function or strategy whatsoever. The man is just hanging on in there, hoping to survive and at the same time frustating the attempts of his co-owner to sell his stake to DIC which without any shadow of doubt is far and away the best way forward for the club. On top of all this the man is about as unpopular as it is possible to be with fans and is outvoted 2 to 1 on the board. Isn’t obvious to all that the only reason he’s still interested in Liverpool is that he can smell money in the long term, he doesn’t give a monkey’s about anything or anybody else.
    He is a hustler, chalatan and a conman and he will ruin the club if he stays as an owner.

  26. Stephen,

    All that your repeating that point does is show how little you know about the NHL and American sports leagues.

    I and another American poster here have already explained your error to you.

  27. I live in Dallas and Tom Hicks is a moron, except when it comes to his hockey team…..GO STARS!!!! The Texas Rangers have sucked and will always suck like a 10 dollar Whore….he cant get financing? The guy has a couple billion dollars in his wallet…….he is just waiting for the ignorant City leaders to step up and pony up some money like they did to help develop Jerry Jones Dallas Cowboys Stadium and the morons that run this city probably will…. He is a true Texas Wanker not a Texas Ranger.

  28. Texas_Dawg – you are right I don’t know much about NHL. Hence i don’t post on NHL fan sites. All I am looking at are the stats. It looks like from the stats that it is an open league with lots of winners and finalists being drawn from all over. With no dominant team. I just wondered why the Stars are not successful in such circumstances? That is all.

  29. I live in Dallas and Tom Hicks is a moron, except when it comes to his hockey team…..GO STARS!!!! The Texas Rangers have sucked and will always suck like a 10 dollar Whore….

    So one team has been bad (and that long before Hicks came along), and the other has been very good (as acknowledged even by someone who hates Hicks).

    Just as I’ve said. Thanks, Scott.

  30. We Liverpool fans don’t believe not winning anything for years and years is very good. But I guess for teams run by Hicks failure is seen as very good! God help us Dowg if that is the level Liverpool is dragged down to.

    Hicks has not progressed our club by one inch since he took over. No stadium, no money, no use. FACT. But we have be given copious amounts of debt for the pleasure. How much of that will you be paying back? Oh sorry, you won’t be paying it back but real Liverpool supporters will.

  31. “Hicks has not progressed our club by one inch since he took over. No stadium, no money, no use.”

    Agree, but I feel that the blame should not be directed all at Hickleberry Finn’s direction. Gillette also has a 50% stake in the business and this guy seems to have vanished back into the Rocky Mountains from where he came. Both of these individuals promised alot when they took over…….this seemed to be true with their signings of Torres and Babel, but now we are hearing Rafa has minimum funds to play with, must sell before he can buy etc etc. What we hear now is, if I (Hicks) takes over, I will wave my magic wand and get rid of the debt the club has, build a fantastic new staduim (struggling to get funds) and make LFC compete with the likes of UTD and Chelsea (can’t see that happening on the shoestring budget we have). As that old saying goes, actions speak louder than words. Both H&G talk way too much in my honest opinion.
    Moores…..why why why?

  32. All I can say is Beware. We were part of the design team that worked on the Glorypark garages from 2007-2008 and never received a dime for our work. This past January we found out from the Hicks Holdings COO that they have no intention of paying our invoices “because they lost money on the deal too.” Sadly we weren’t aware when we signed up for the work that we weren’t going to be paid for work completed if the deal didn’t go thru.

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