MARCH 4
Hicks plots total control of Reds

BBC Sport Online

Liverpool co-owner Tom Hicks is unwilling to sell his share in the club to Dubai International Capital and aims to buy out partner George Gillett.

DIC has tabled a formal £400m bid to take control from the American duo.

BBC sports editor Mihir Bose told BBC 5 Live: "Hicks has been willing to have DIC as a minority stakeholder. He's not willing to sell a controlling interest.

"Tom Hicks is working on a plan where he would buy out his partner George Gillett, who is minded to sell to DIC."

Hicks has not formally rejected the offer from DIC, the Government-run Dubai investment fund, but is still unwilling to sell out.

DIC has insisted there is no deadline on its bid to buy out the Americans, who took control of the club in a deal worth £218.9m in February 2007.

Bose explained: "Gillett and Hicks have an informal understanding that one won't sell without the other and DIC has never been interested in being a minority stakeholder, and would not be interested in getting into bed with Hicks with a 50-50 partnership."

He added: "There is a bit more to go but some conclusion will be reached - either Hicks will raise the money to buy out Gillett and take total control, or there will be a sale of the club. I suspect it will be another couple of months at least before it is resolved."

DIC confirmed on Tuesday it had been in talks with American duo Hicks and Gillett about purchasing a stake in the Anfield club.

"It's no secret that we have been in discussions with the current owners," said DIC chief executive Sameer al-Ansari.

"It's not easy because (they) are in dreamland about valuations."

Al-Ansari later clarified that one of the club's owners "had come out of dreamland", without giving further details.

Bose said: "The fact that DIC has gone so public on this means they know that the offer is not being accepted and they are trying to use fan pressure, like the Americans did last year."

Texan billionaire Hicks said in February he was not planning to sell a stake in Liverpool, denying media speculation he was in talks with DIC over a sale.

He also revealed that Gillett could not sell his stake in the Premier League club without his approval.

However, both Hicks and Gillett have become increasingly unpopular among Reds fans, drawing criticism for their treatment of manager Rafael Benitez and their financial management of the club.

That has given fresh hope to DIC, which was considering buying Liverpool before the Americans joined forces to complete their own takeover in February 2007.

Hicks said in January he had talked to DIC "once" about a 10-15% stake, but DIC said the valuation was too high.

DIC is thought to want a controlling stake at Anfield, meaning it would need to convince Hicks to relinquish part of his 50% of the club as well as buying out Gillett.

Another obstacle is the refinancing package announced on 25 January that has loaded £105m of debt on to the club.

Of that, £60m is earmarked to kick-start the new stadium development at Stanley Park plus £45m for future player transfers and to meet the club's working capital needs.

DIC, which manages about £6.5bn of assets, is owned by Sheikh Mohammed bin Rashid al-Maktoum, the ruler of Dubai.

Al-Ansari was the man behind the takeover bid a year ago and looked to have succeeded until then Liverpool owner David Moores suddenly opted to sell to the Americans.

"It took me two weeks to get over that," said al-Ansari, who is a Liverpool fan. "But it didn't dent my passion - I still go to every match when I'm here."

MARCH 4
Hicks stands firm over Anfield stake

TEAMtalk

Liverpool co-owner Tom Hicks has not formally rejected DIC's reported offer for the club - but remains unwilling to sell his stake.

It is understood that Dubai International Capital made an offer for fellow owner George Gillett's 50% share in the club earlier on Tuesday, which was extended to Hicks.

But associates of Hicks have reiterated the stance made public at the end of last month when he vehemently denied that his stake was up for sale.

Despite reports that DIC are willing to pay £400million for the Merseysiders, handing Hicks and Gillett a profit of £25million each, and take on all of the club's debt, Hicks' position appears as entrenched as ever.

He remains unwilling to deal with any parties who would ask him to accept anything other than majority shareholder status, and retains the ability to veto any sale of Gillett's stake.

Although no formal statement is expected from the American, his stance remains the same as last month, when he said: "Reports that I am about to sell my stake in the Liverpool Football Club, or to invite DIC to examine the club's books in preparation for such a sale - like other such reports planted in the UK press in recent weeks by parties with their own self-interested agenda - are absolutely and categorically false.

"The reality is that I am personally, professionally and financially committed to the club and its supporters and that I will continue to honour that commitment to the best of my ability now and in the future."

MARCH 4
DIC: No midnight deadline for Liverpool bid

Ireland On-Line

Dubai International Capital today denied a “timeline” has been put on any offer for Liverpool.

The company’s spokesperson Jehad Saleh refused to comment on reports DIC this morning tabled a £400m bid for the club.

However, Saleh insisted reports DIC had given Liverpool co-owners George Gillett and Tom Hicks a deadline of midnight tonight to accept an offer were not correct.

She said: “No figures have been (publicly) mentioned, and talks are ongoing. No timeline has been set on the talks.”

DIC chief executive Sameer al-Ansari, a lifelong Liverpool fan, this morning confirmed he is in talks with Gillett and Tom Hicks.

Saleh refused to confirm that Al-Ansari is currently speaking to both Gillett and Hicks, but revealed he was in Dubai.

Reports on Merseyside claimed the deadline had been imposed on Hicks and Gillett to accept the bid.

The offer would give the American businessmen a profit of £25m each on their investment in the club.

The reported bid follows confirmation from DIC, the investment arm of the Maktoum royal family, that talks had taken place between the various parties but were being held up by the valuation of the club by one of Hicks or Gillett.

“It’s no secret that we have been in discussions with the current owners,” said Al-Ansari on www.skysports.com.

“It’s not easy because the owners are in dreamland about valuations at the moment.”

Al-Ansari later clarified that one of the club’s owners “had come out of dreamland”, without giving further details.

Other reports today indicate Hicks, who has insisted he is opposed to a sale, has been trying to raise the capital necessary to buy out his partner.

But Hicks has described such speculation as “premature”.

The US tycoons are believed to have suffered a breakdown in their relationship since taking over Liverpool last year.

FEBRUARY 28
Hicks may block Gillett sale

By Lewis Rutledge - Sky Sports

Liverpool co-owner Tom Hicks has hinted that he may not allow George Gillett to sell his 50 per cent stake in the club.

Hicks insisted only this week that he is not interested in selling his stake in Liverpool.

Neither man can sell without the other's consent and Hicks has revealed that he could block his fellow American if he tries to cut his ties with the club.

"Not only am I not going to sell, my partner cannot sell without my approval," Hicks said in the Fort Worth Star-Telegram.

"So, I kind of have the ability to determine the outcome of what is going to happen, and I am right in the middle of that."

Recent reports have suggested Dubai International Capital are considering making an offer for Gillett's half of Liverpool.

Hicks and Gillett took control of the Reds in 2007, but their time at Anfield has been shrouded in controversy as Liverpool have struggled on the field.

FEBRUARY 28
John Aldridge: Why I'm backing fans bid

By Tony Barrett - Liverpool Echo

John Aldridge today called on Liverpool fans worldwide to join him in an audacious attempt to buy the club.

The Reds legend has pledged £5,000 to buy a share in the ambitious Share Liverpool scheme set up by University of Liverpool academic and lifelong Liverpudlian Rogan Taylor.

Aldridge believes the dream of supporters owning the club can be come reality, as long as fans believe it themselves.

He said: "As someone who was fortunate enough to play for the club and who loves the club dearly, it hurts me to see it in the kind of turmoil it has been in recently.

"That's why when Rogan told me about his plan I thought it was a fantastic idea. It's all about putting power in the hands of the fans and that could only be a good thing.

"I've pledged and I would call on all Liverpool supporters around the world to do the same.

"I know £5,000 is not an insignificant amount of money but the beauty of Share Liverpool is groups of fans can get together to buy a share between them, you don't have to be rich to buy a share.

"If we get together and buy the club outright it would be a dream come true. It would put the power in the hands of the people who love the club most and it would also make the club incredibly powerful because there would be no profits or share dividends going elsewhere.

"Every penny generated would go back into the club. How many other clubs in Europe could boast that kind of spending power?"

Having played in Spain with Real Sociedad, Aldridge witnessed at close quarters how the Barcelona model helps make the Catalan giants one of the most powerful clubs in Spain and beyond.

And, even though he concedes that the Barcelona members never had to fork out hundreds of millions of pounds to buy their club, Aldridge reckons the comparison with Liverpool still applies.

"That is an important difference," he admitted.

"But when you look at what a fantastic club Barcelona is it should inspire everyone who loves Liverpool to at least try and do something similar.

"It can't be a coincidence that Barcelona are always in the running for the biggest prizes. That comes down to the way the club is run, from the members upwards.

"Like Barcelona, Liverpool is a very, very special club and I've no doubt our fan base is big enough to get the number we need.

"Liverpool is one of the best supported clubs in the world, right up there with the likes of Man United, Barcelona and AC Milan.

"When you have such numerical strength anything is possible."

Aldridge concedes there are those who will be sceptical and he readily admits it is an ambitious project which could fall short of its target.

But he also believes it is worth testing the water to see if Liverpool's fans can pull it off. Having met the newly formed steering committee at the weekend his hopes were boosted that the fans really can own the club.

"The people on the committee are very, very impressive," said Aldridge, who played 104 games and scored 63 goals in a red shirt.

"I met them on Sunday and I have to say the whole set-up surpassed my expectations. I met top people from the legal, financial and marketing worlds and, most importantly, every single one of them is a lifelong Liverpudlian.

"All credit to Rogan for that because to start from scratch and come up with such an impressive set of plans and the right people to put them into practice is some achievement.

"I would urge people not to be sceptical because believing in the idea is half the battle. "It might not end up happening but there is definitely no harm in trying.”

When the Share Liverpool website was set up last month it crashed because of the sheer weight of numbers trying to register interest.

Despite that early glitch, more than 9,500 people have already pledged £5,000 with a further 9,000 asking for further information.

It is these promising early figures which have fuelled Aldridge's belief that Share Liverpool could yet reach its target of attracting 100,000 supporters to pay £5,000 each in order to raise £500m to buy the club.

"If you look at those figures you have to be impressed," he said.

"This is something that only started a month ago and already there are more than 9,000 people who are saying they want to be a part of it.

"The interest was so overwhelming that the website crashed because it simply could not cope with the demand.

"All of that suggests to me that this is do-able and when you support a club like Liverpool you know anything is possible because we have seen enough footballing miracles to realise that this the case.

"It would be great if former shareholders got involved.

"If we all support it then we might just make it happen."

FEBRUARY 26
Hicks denies plan to sell Liverpool stake

Evening Echo

Liverpool co-owner Tom Hicks has insisted he is not planning to sell his stake in the club.

The Texan billionaire claims he is completely committed to Liverpool and has rejected reports that he has invited Dubai International Capital (DIC) to inspect the club’s accounts in preparation for a takeover.

Hicks said in a statement: “Reports that I am about to sell my stake in the Liverpool Football Club, or to invite DIC to examine the club’s books in preparation for such a sale – like other such reports planted in the UK press in recent weeks by parties with their own self-interested agenda – are absolutely and categorically false.

“The reality is that I am personally, professionally and financially committed to the club and its supporters and that I will continue to honour that commitment to the best of my ability now and in the future.”

FEBRUARY 26
DIC 'close in' on Gillett's
50% stake in Liverpool

By Tony Barrett - Liverpool Echo

Dubai International Capital may own at least half of Liverpool Football Club within the next three weeks.

After months of negotiations George Gillett has reportedly indicated a willingness to sell his 50% stake in the club and a fee is believed to have been agreed.

A specialist team of bankers and solicitors have been put in place by the investment arm of the Dubai government as it awaits permission to study the club's books.

That permission is expected to be granted in the next couple of days and should everything be found to be in order, DIC could complete the deal with Gillett, who is ready to relinquish his stake having had a massive fall-out with Reds co-owner Tom Hicks.

The relationship between the two Americans has reached an all-time low and Gillett believes it is now beyond repair.

Hicks, though, is not prepared to give up his stake in Liverpool and DIC are prepared to enter into shared ownership with the Texan, in the short term at least.

The Texan released the following statement this afternoon, "Reports in the UK media that I am about to sell my stake in the Liverpool Football Club, or to invite DIC to examine the Club's books in preparation for such a sale - like other such reports planted in the UK press in recent weeks by parties with their own self-interested agenda - are absolutely and categorically false.

"The reality is that I am personally, professionally and financially committed to the Club and its supporters and that I will continue to honor that commitment to the best of my ability now and in the future."

Hicks has expressed a desire to retain control of the club but DIC are not interested in being a silent partner and want to start making decisions regarding the club's future as and when they complete the proposed deal with Gillett.

Hicks had tried to secure the funding to buy Gillett but with the credit crunch biting hard has been unable to do so and is now resigned to the fact he is likely to have a new partner shortly.

DIC are also looking to buy part of Hicks' stake as they look to secure a majority shareholding in the club, which they tried to buy outright last year.

Despite losing out to the Americans in February 2007, their interest has never faded and they have now successfully negotiated themselves a position which could see them take part-ownership by mid-March.

Should that happen, it would, in all likelihood, be greeted with enthusiasm by Liverpool's fans after a series of protests against Hicks and Gillett.

FEBRUARY 7
Liverpool fans pledge £60m

TEAMtalk

Share Liverpool FC have confirmed they have been pledged nealy £60million during the first four days of the fans' scheme.

The group is looking for 100,000 fans to put in £5,000 each in a bid to buy the club and so far 11,892 fans have pledged to buy a share of the club which amounts to £59.46million in a bid to make the £500million needed for the buy-out.

Google has revealed that, as well as the 11,892 "count me in" responses, the site has also recieved 5,394 responses in favour of the idea but need more information to make their pledge and 7,930 responses from people who cannot afford it.

The UK, Norway, USA and Ireland are the four countries where most of the hits originated from.

Rogan Taylor, Share Liverpool FC's spokesperson said: "These are pretty impressive numbers for just a few days with www.shareliverpoolfc.co.uk live on line and we're very encouraged.

"The stats also reveal we have a lot of work to do to present more detailed information, and also to address the affordability issue many fans flagged up.

"What they will be buying is something that lasts forever - a share in Liverpool Football Club which cannot be disturbed.

"The member shareholder will be able to pass it on, down through his or her family generations; to sons and daughters, and grandchildren. You will sit in that new stadium and think: 'This belongs to us...and so does the club that plays here!".

FEBRUARY 7
Hicks and Gillett double act has failed

By Tony Barrett - Liverpool Echo

The ink was barely dry on the offer document to buy Liverpool Football Club by Tom Hicks and George Gillett when one Reds legend confided that he believed the American adventure would end in tears.

“It will never work,” he said. “You can only have one person at the top making the big decisions.

“We found out when Gerard Houllier and Roy Evans were joint managers of the team that those kind of partnerships don't work in football.

“You need one person in charge, it’s as simple as that.”

Twelve months on from Hicks and Gillett taking over at Anfield, those words are looking remarkably prescient as the ‘two heads are better than one’ theory is starting to ring incredibly hollow.

Their divisions on the running of the club are now being laid bare, with the most glaring example being the position of Reds boss Rafa Benitez.

After a startling admission by Hicks that they had spoken to Jurgen Klinsmann about the possibility of replacing Benitez, the Spaniard was then told by the Texan that he had his backing at least until the end of his current contract which runs out in June 2010.

Significantly, Gillett has refused to offer similar assurances and the ECHO understands he has no intention of doing so.

But it isn’t just the major issues like the management of the first team where such division has been illustrated. There have also been incidents involving the day to day running of the club which highlight the fact that Hicks and Gillett have not always been thinking as one.

Sources in the city’s financial sector were left aghast when the duo sent separate accountants into the club on consecutive weeks last year.

One told the ECHO: “Obviously, it is common practice for owners to study the books, particularly when the business they own is so far away.

“But it only requires one set of accountants to do the job, there is no question about that.

“At Liverpool there was a two week period when a whole section of the club was brought to a standstill because one week Hicks sent his accountants in and the next Gillett sent his in.

“These were two separate firms of accountants studying the very same books for co-owners and both will have incurred costs in doing so.

“One can only assume that the bill for these costs were picked up by the club itself.”

While Hicks and Gillett have drifted further apart in their running of the club, the fans have been brought closer together as the feeling that the American duo are failing Liverpool grows.

Looking back on the last 12 months, Neil Atkinson, of newly formed fans group ‘Sons of Shankly’, is in no doubt that the Hicks and Gillett experience has not been a good one thus far.

He said: “One year on since we were promised the world, since we were told there would be no Glazer exploits here, since we were told there would be a spade in the ground within 60 days, we’ve been plunged into £350m of debt and there isn’t a spade to be seen.

“George Gillett said they would be judged on what they did, not what they said.

“Well, they’ve done nothing but hurt the club. Tom Hicks has said too much and now Gillett is seemingly mute. It’s entirely unacceptable.”

The supporters were today given the backing of Walton MP Peter Kilfoyle, who called on Hicks and Gillett to sell up before they can do any more damage to the club.

Kilfoyle, whose constituency takes in Anfield, told the ECHO: “What we are seeing at Liverpool at the moment is a recipe for chaos unless they sell up.

“Dubai International Capital appear to be the only ones on the horizon who are putting together a serious bid to buy the club and I would hope that Hicks and Gillett would do the decent thing and cut their losses or, at the very least, sell up for a small profit.

“From what I know of DIC they undoubtedly have the resources to give the fans what they want and, in Sameer Al-Ansari, they have a very capable chief executive who is also a Liverpool fan.

“So the best thing for all concerned would be for the Americans to sell up to DIC. If they’re not careful, Hicks and Gillett could be left with a bigger debt on a depreciating asset because, unlike Manchester United, Liverpool do not have the stadium to service the debt.

“Unless they do sell up then I really do fear for the future of the club.

“According to the figures we have seen following the recent refinancing deal, they have only put aside £60m for the new stadium.

“All I can read into that is that they are looking to raise most of the rest of the money through further loans. It really is a nightmare scenario.

“What always has to be remembered is that these are businessmen and in their eyes Liverpool Football Club is a commodity to be bought and sold at a profit.

“I just hope they recognise what way this is heading and do the right thing and sell up.”

That is clearly the view of the vast majority of Liverpool’s army of fans as well.

Having welcomed the Americans with open arms just a year ago they have since seen enough of them to come to the conclusion that Hicks and Gillett are not the custodians they had hoped they would be.

DIC’s bid to take Liverpool over at the second time of asking is undoubtedly building momentum and, with Sheikh Mohammed al-Maktoum now personally involved in their ambitious attempt to oust Hicks and Gillett, the fans’ wish to see the American duo ousted from their club could yet be granted.

FEBRUARY 6
Gillett & Hicks, one year on:
From hope to despair

Today marks the first anniversary of the takeover of
Liverpool FC by George Gillett and Tom Hicks.
Tony Barrett examines the impact the American duo
have had on the club over the past 12 months.

By Tony Barrett - Liverpool Echo

Liverpool have played 36 league games since the takeover, winning 16, drawing 13 and losing seven.

A total of 61 points from those games is put into sharp perspective by the fact that current Premiership leaders Arsenal have garnered 60 points from just 25 games so far this season.

Qualification for this season's Champions League was secured when the Reds finished third in last season's Premiership.

They have a battle on their hands to repeat that this year with Everton, Man City and Aston Villa all involved in a four-way battle for fourth place.

This season has been a disappointment in the Premiership, with the long- awaited title challenge having failed to materialise.

Liverpool made it to last season's Champions League final, knocking out Barcelona, PSV Eindhoven and Chelsea following the arrival of Hicks and Gillett, only to lose to AC Milan in the final.

They are still involved in this season's competition with a last 16 tie against Inter Milan on the horizon.

TRANSFERS
Fernando Torres, Ryan Babel, Martin Skrtel, Lucas Leiva, Yossi Benayoun, Sebastian Leto, Andriy Voronin and Charles Itandje have all been brought in at an estimated cost of £50m.

Momo Sissoko, Djibril Cisse, Craig Bellamy, Luis Garcia, Mark Gonzalez, Jerzy Dudek and Robbie Fowler have all been sold or released with an estimated £31m being brought into the club.

There is also a deal near completion for Javier Mascherano, who would cost £18.6m.

THE STADIUM
One of the first pledges Hicks and Gillett made upon taking over the club was to have a spade go into Stanley Park within 60 days.

A total of 365 days have now passed and Stanley Park remains almost untouched.

Hicks and Gillett have revised the stadium plans they inherited twice during the past 12 months.

Their first effort had to be scaled down because costs threatened to spiral out of control.

The latest design, by Dallas-based HKS, has a 71,000 capacity, is due to be built for the start of the 2011/12 season and will cost around £300m to complete.

FINANCES
When Hicks and Gillett bought Liverpool FC they used loans rather than cash from their own personal fortunes to do so.

They paid £5,000 a share, a total outlay of £174.1m. They also borrowed another £11m to pay banks and advisers for doing the deal and a further £44.8m to absorb the club's debt at that stage. On top of this, another £70m was added to the loan for the stadium project and running costs.

At that stage, even though they had not spent a single cent from their own pockets, Hicks and Gillett told fans they would not "do a Glazer" by loading the club with debt.

Twelve months on and a huge refinancing deal later, such pledges ring incredibly hollow.

Financial restructuring was concluded last month when a £350m loan was taken out with the Royal Bank of Scotland and Wachovia. £105m of that was immediately loaded onto the club's books with the remaining £245m being taken on by Kop Holdings, the holding company set up by Hicks and Gillett when they bought the club last February.

In a recent statement, Hicks' spokesman admitted that the club will have to service the interest payments on both sections of the debt to the tune of around £30m a year.

THE CLUB'S REPUTATION
Alongside finances, the biggest area of concern since takeover.

Three major demonstrations by fans at a club which had previously had none tells its own sorry story.

From being a club which was renowned for keeping problems in-house, Liverpool have become a club where dirty linen is washed in public on an almost daily basis.

From Rafa Benitez's now infamous "I'm concentrating on coaching and training my players" press conference to Hicks' admission to the ECHO that Jurgen Klinsmann had been lined up as a successor to the Spaniard, the Americans’ PR has been a disaster zone.

Add in on-going speculation about the club's ownership and the last 12 months have been among the most difficult in Liverpool's history.

Damage has been done and unless there is a return to the principles of the much fabled "Liverpool Way" it will continue to be done.

RELATIONSHIPS
In simple terms, the relationship between Tom Hicks and George Gillett has all but broken down.

Marry at haste, repent at leisure seems to be the story of their partnership.

A marriage of convenience to see off DIC at the 11th hour has certainly not resulted in a tale of happy ever after.

Rumours of serious divisions between the pair have been circulating for some time and appeared to be confirmed when a statement was released to confirm the conclusion of refinancing, but it carried only Hicks' name. Gillett's was conspicuous by its absence.

Hicks has tried to build bridges with Benitez following his admission that he spoke to Klinsmann about replacing him and recently backed the Spaniard to continue as manager for the length of his current contract, a little over two more years.

Significantly, Gillett kept his counsel.

THE FUTURE
Dubai International Capital retain a very strong interest in buying Liverpool, an interest which did not wane whatsoever despite Hicks and Gillett concluding their refinancing deal.

The investment arm of the Dubai government may have missed out on getting their hands on the club last year, but they haven't gone away and the ECHO understands senior DIC executives have been in dialogue with Hicks and Gillett for several weeks with a view to doing a deal.

They are ready to test the American duo's determination to hold onto the club but only at a price that suits them – in their eyes, paying over the odds is not an option.

Significantly, Sheikh Mohammed al-Maktoum, whom the ECHO can reveal was a boyhood Liverpool fan, has now taken a personal interest in making the deal happen.

Gillett & Hicks: A year in their own words

"We have purchased the club with no debt on the club,"
George Gillett, Feb 6, 2007.

"We are going to build the finest team for the finest stadium in the Premier League and that is Liverpool,"
Tom Hicks, Feb 6, 2007.

"The shovel needs to be in the ground in the next 60 days,"
George Gillett, Feb 6, 2007.

"It's all about the fans and the winning tradition,"
George Gillett, Feb 7, 2007.

"I won't be a visible owner. You'll see me in the stand yes, but probably not so much in the directors' box as out in front meeting people and thanking them for their support,"
George Gillett, Feb 7, 2007.

"I'm not a person who goes and hides,"
George Gillett, Feb 7, 2007.

"Our job is to be custodians of this franchise, not the owners of this franchise,"
George Gillett, Feb 7, 2007.

"There's no way either of my two teams' fans have the level of intense passion that Liverpool has,"
Tom Hicks, May 26.

"We want to be regularly competing for the Premiership and the Champions League,"
Tom Hicks, May 26.

"The fans are smart. The fans can sense that George and I want exactly what they want,"
Tom Hicks, May 26.

"It is really time for Rafa to quit talking about new players and to coach the players we have,"
Tom Hicks, Nov 23, 2007.

"It's been a big misunderstanding blown very much out of proportion. George and I are happy to see that it has settled back down,"
Tom Hicks gives Rafa Benitez his backing, Dec 1, 2007.

"George and I have never been closer. We both were very disappointed and confused as to where that inaccurate information came from,"
Hicks dismisses rumours of a split, Dec 1, 2007.

"We attempted to negotiate an option as an insurance policy to have him (Klinsmann) become manager if Rafael left for Real Madrid or other clubs that were rumoured in the press,"
Tom Hicks, January 13, 2008.

"I will still be an owner of Liverpool Football Club in five years,"
Tom Hicks, Jan 27, 2008.

"Rafa's going to be our manager. He's got a contract here for two more years and hopefully he'll stay for longer,"
Tom Hicks, Jan 27, 2008.

"As far as I'm concerned Rafa Benitez will be here for at least the length of his contract,"
Tom Hicks, Jan 27, 2008.

FEBRUARY 5
How Liverpool FC
ended up in American hands

Liverpool FC spent years scouring the world
for investment before the arrival of
Tom Hicks and George Gillett a year ago this week.
On day two of a three-day special report,
David Bartlett looks at how the deal was done.

By David Bartlett - Liverpool Daily Post

It is often assumed that members of the Moores family (by their annual inclusion in the Sunday Times Rich List) have an endless supply of cash.

There is no doubt that David Moores, former Liverpool FC chairman and nephew of the late Sir John Moores, is a wealthy man.

And while he certainly did not drain the club of money, Moores’s Littlewoods-accrued fortune was not enough to allow the level of investment needed in his beloved football club to give it Chelsea of Manchester United-style wealth.

And so it was that in March 2004, Liverpool FC hired finan-cial advisors Hawkpoint Partners to start a world-wide search for investors.

The search would take Moores and club chief executive Rick Parry to all four corners of the globe, sometimes to embarrassing effect. At an early stage of dealing with former Thai Prime Minister Thaksin Shinawatra, who now owns Manchester City, the pair went to Thailand with Keith Clayton, a club director and Moores’s accountant.

They were invited into one room to talk, and then into the next and unwittingly found themselves in a most unwanted press conference.

Talks with Shinawatra stalled in summer, 2004, with a sigh of relief from many fans far from enamoured with his human rights record.

Robert Kraft, who owns American Football team the New England Patriots, was also courted while multi-millionaire Liverpool FC shareholder Steve Morgan was keen to take a controlling interest.

Club officials first met George Gillett, now co-owner with Tom Hicks, in August, 2006, after the club had been chasing the investment group of the Dubai government, Dubai International Capital (DIC), for about two years.

“He was not taken terribly seriously at that stage, but those who met him thought he was a nice man,” a source told the Daily Post.

In the autumn of 2006, frustra-ted with the prevarication of DIC in making an offer for the club, Parry and Moores travelled to Montreal, Canada where Gillett showed the pair his ice hockey team the Montreal Canadiens.

A source said the pair were impressed but continued dialogue with DIC.

On December 6, 2006, Moores decided to go with DIC and the company was named preferred bidder.

The parties agreed to a period of exclusivity which ended on January 19, 2007.

It is clear, though, that Gillett did not give up at that stage, and Companies House records show that Kop Football Limited, the holding company through which he and Hicks own the club, was incorporated on December 18, 2006.

The DIC offer on the table was to buy at £4,500 a share, but a source said that club officials became frustrated with the company’s “dithering” over carrying out due diligence.

A DIC briefing paper was leaked which detailed an “exit strategy” and their intention to sell the club at a profit in the future. When this was revealed and faxed to Rick Parry from the Daily Post and Echo building, the tide had gone against the company, said the source.

According to a source there was a secret meeting at the Marriott Hotel at Canary Wharf, London where Gillett came in with an offer of £5,000.

“George was running the deal, but he didn't have the money, so he brought Tom Hicks in,” said the source.

DIC had withdrawn from the process and on January 30, 2007, the club board met and agreed to accept Hicks and Gillett’s offer.

Moores, who owned 51.5%, made almost £90m, Granada (or ITV Productions) pocketed around £18m, Radio City founder Terry Smith made £1.5m, former director Noel White £1m, and Steve Morgan about £8.7m.

Rick Parry was also paid a £500,000 completion bonus on top of his £500,000 salary.

Hicks and Gillett paid £174.1m for the club’s 34,800 shares, and also took on £44.8m of debt.

The controversial £350m refinancing package concluded last month – which has so angered fans – paid off the initial loan used to buy the club but loads both Kop Holdings and Liverpool FC with debt. It did, however, see Hicks and Gillett dip into their own pockets for the first time, with a joint investment of around £40m.

“Paradoxically about 70% of what they have done is good,” said a source. “What they have got dis- astrously and consistently wrong is the public presentation of it.”

First there was the new sta-dium, unveiled last summer with great fanfare but sent back to the drawing board in December.

Then there was Hicks’s public admission that Jurgen Klinsmann had been lined up as a possible replacement for manager Rafael Benitez. And then the refinancing package that included £105m of debt on the club’s books.

“Now there is a huge chasm between the owners and the fans,” said a source. “They just don’t understand The Liverpool Way.

“We have different standards and expectations to other clubs – and rightly so.”

FEBRUARY 5
LFC ONE YEAR ONE:
The stockbroker's view

By Neil Blankstone - Liverpool Daily Post

A Lot has transpired in the 12 months since Messrs Hicks & Gillett took over LFC.

Dubai International Capital (DIC) was in the driving seat in November 2006, having secured an agreement in principal with the majority shareholder David Moores to takeover the club.

Then, at the “11th hour” George Gillett finally found a business partner, Tom Hicks, enabling them to table the same offer as DIC.

David Moores felt morally obliged to consider not only the other shareholders but also the supporters and as a result requested of DIC 24 hours to consider matters.

DIC felt this had broken the agreement and walked away from David Moores (but not LFC!) leaving only the American offer on the table.

With the costs of the proposed new stadium development rising almost daily, a deal was quickly struck, the Americans taking full control by April 2007.

Initially, the deal was not structured in the same way as the Glazer takeover of Manchester United ie loading the club with debt.

It was recognised that a refinancing of the loans taken out to cover the initial transaction and the whole of the clubs financial base would be reorganised within a fairly short space of time.

A well-documented deal has been struck with banks Royal Bank of Scotland and Wachovia that appears to have been split in three parts:

£105m of debt directly onto Liverpool’s books

£185m by KOP Football Limited

£60m of personal guarantees by Hicks and Gillett.

All of this was negotiated at the height of turmoil in the world’s financial markets and whilst the exact terms of the deal are not known, one of the reasons it probably took until the last minute to complete the refinancing is the volatility in market rates.

It would also appear that David Moores and Rick Parry, who remain on the board of the Kop Holding Company, had concerns as to the placing of too much debt on the club’s balance sheet.

The banks appear to have insisted on total agreement at board level, hence the structure of the loans.

Is the debt serviceable? In the last 12 months two significant television deals have been completed.

Domestically, although Sky lost its exclusive rights the rights still exceeded the previous deal. Probably more importantly, the International rights to Premier League games saw the same price achieved as the last round of domestic rights.

That alone means an even greater audience will now be reached adding to the potential for increased marketing activity.

LFC has also launched its TV channel on the Setanta Sports network, whilst an overhaul of its website has seen the number of visitors increase materially.

The team is also expected to continue to challenge for the game’s top honours. Qualifying for the European Champions League is important (preferably reaching the last 16 as a minimum – anything beyond that being a substantial bonus), but missing out twice in a five-year period would not be a complete disaster (although two consecutive years would put a strain on cash flow).

All of this, however, means that even an annual interest bill reported at £30m per annum should be manageable.

There is also the matter of the new stadium. The merchandising of LFC through the new mediums needs to be undertaken alongside this.

An extra 20,000-25,000 people attending 18 league matches a season would generate additional £10.8m- £13.5m revenue per season.

Add Champions League matches to that and you can see the difference.

Meanwhile, the rumour mill continues in full swing that Liverpool may be subject to a further change in ownership.

As stated above DIC did not walk away from LFC and it would appear that Tom Hicks did offer them a 15% stake.

It his partnership with George Gillett that is most under scrutiny and as always it then comes down to valuation.

With the extra revenue and despite much work to be done with regard to the new stadium, as well as the increased debt, it is clear that LFC is worth more today than it was 12 months ago.

FEBRUARY 5
Lawrenson: Ownership change may be
the only way now for Liverpool FC

It is a year since the arrival of Tom Hicks and George Gillett promised to herald the beginning of a new era at Anfield.

The pair came out, as Americans tend to do, with all guns blazing but they certainly said the right things and showed they were aware of the history and traditions of Liverpool FC.

The supporters were left to trust that there were certain assurances in the detail and structure of the takeover deal that would safeguard the future of the club.

Expectations were high over the new stadium and transfer money for Rafael Benitez to build a team capable of challenging for the Premier League title – and the signing of Fernando Torres and a flying start to the league campaign boded well.

But the first cracks started to appear in public after the infamous Benitez Press conference – in which he repeated the mantra that he was concentrating on coaching – and his tracksuited appearance for the Newcastle game that weekend.

At the time it looked merely like the manager had thrown his toys out of the pram, but in hindsight perhaps he was being cuter than we realised in flushing out the behind the scenes problems.

The revelations that the Americans had lined up a potential new manager in Jurgen Klinsmann dealt a potentially fatal blow to the bond that existed between supporters and owners.

Further news that the stadium plans had been scaled back and that a re-financing of the club would see the debt serviced from the Anfield coffers only heightened fears among fans that this was not what they had been expecting when the Americans outlined their vision and hopes for the future.

Twelve months on from that first Press conference and the owners have been the subject to unprecedented protests from the fans and even a suggestion the supporters unite to buy the club themselves. Unworkable though the idea is, it does reflect the depth of feeling among supporters who want to do something to help their beloved club.

The two co-owners reportedly do not see eye to eye over the way things have been handled which leaves further uncertainty, with DIC preparing the ground for another attempt to take over.

In the meantime Liverpool is left in limbo with question marks hanging over the future involvement of just about all the main players – from the owners to the manager.

Supporters worry about the effect on the players as results have waned and it must be impossible for it not to affect Benitez in some way.

Picking his best side as often as possible and allowing players to develop the partnerships that are so important to team play offers the Spaniard a quick remedy.

But when it comes to the takeover, the situation is far less clear. The intricate details of any deal do not really come out at the time and fans were reassured by the fact that Hicks and Gillett had both been involved in building stadia in America and running sporting franchises so they would have a feel for what happens in the world of sport.

But supporters are still waiting for work to begin on the stadium despite suggestions it would be just 60 days after the Americans’ arrival – with the prospect that Everton’s new ground could be done and dusted first.

And the manager is left to spend what he raises in terms of buying players with no bulging transfer kitty to dip into. Benitez is trying to lift the team to the next standard – which they have patently not achieved yet – but that does not make him a bad manager overnight after the successes he has enjoyed.

Liverpool have never been the type of football club to talk about things before they have been signed and sealed, but now fans read stories about things that have yet to happen.

In some ways the club has been left playing catch-up. It has always been well run, but when they were winning things at home and abroad in the 1970s and 80s, perhaps that was the time to develop the club commercially by looking at new markets in places like the Far East and Asia. Instead Manchester United seem to have stolen a march in that area and, indeed, seem to be the role model for success in a number of key areas along with Arsenal.

In many ways the Klinnsman revelation has been the most damaging to the owners. They are already operating thousands of miles way from the club, and were actually talking to another manager while their own team was doing fine.

It was a situation that lacked class, a point picked up on by Sir Alex Ferguson when he spoke out in support of Benitez recently.

Added to the rest of the equation, it means the Americans have lost the majority of the fans – and there seems no way they are going to get that trust back.

The only way forward now seems to be another change of ownership – but at the very heart of any new leadership must be that the best interests of Liverpool FC are of paramount importance.

Mark Lawrenson was talking to RICHARD WILLIAMSON

FEBRUARY 4
Fortress Anfield on shaky ground

Tom Hicks and George Gillett took control of Liverpool FC a year ago this week. Andy Kelly begins the Daily Post’s special three-day report into the American takeover at Anfield

By Andy Kelly - Liverpool Daily Post

A record seventh Champions League final, another legendary semi-final victory over Chelsea, the arrival of a £20m striker and the unveiling of plans for a 70,000 seat new stadium.

Had you offered all these things to any Liverpool FC fan on February 6, 2007, as Americans Tom Hicks and George Gillett completed their takeover of the club, they would probably have bitten your hand off.

Remarkably though, all those things have happened in the last year at Anfield – but the first anniversary approaches with demonstrations demanding the removal of the owners.

The empty seats next to Rick Parry and David Moores in the Anfield directors’ box, presumably left deliberately clear, speak volumes not just about the absence of the co-owners but the current absence of leadership at the club.

How have we gone from the welcoming banners for uncles Tom and George to the chants of “Get out of our club” and “Liverpool Football Club is in the wrong hands” which have been so prevalent in recent weeks?

How has Tom Hicks gone from the billionaire with the big bank balance to being labelled by some of the Kop faithful as the “liar” with a big head in just 12 months?

The demonstrations may have switched to post-match to ensure support for the team is not affected, but the thousands who stayed behind on Saturday made it clear the criticisms are not going away.

How have we gone from talk of the club’s future being secured for the next 30 years to the possibility of another sale, this time to Dubai International Capital, and possibly within days?

The answer lies in broken promises, whether real or perceived, and a fair amount of bad luck along the way.

As a city, Liverpool has a history of warmly welcoming needy new arrivals. The difference when Tom Hicks and George Gillett came to town was that here were two men who did not need help but could provide it.

They had, it was hoped, the financial muscle and marketing prowess which would finally allow Liverpool to challenge the riches of Manchester United and Chelsea, returning the club to the summit of English football.

Importantly, they did not have the negative human rights perceptions of then Thai prime minister Thaksin Shinawatra, now ensconced at Manchester City, who had been courted previously.

They had also promised not to load the club with debt, as Malcolm Glazer had at Old Trafford, prompting those gleeful chants of “USA, USA” from the Liverpool supporters which seem a lifetime ago now.

Fans were even prepared to turn a blind eye to Tom Hicks’s supposed close friendship with President George Bush, a significant sacrifice for some.

There was ready acceptance of the £220m deal quite simply because the club badly needed a change. Insiders describe the Moores era at the club as one of unbelievable inertia, where “getting things done was unbelievably difficult.”

An all too frequent summing up of his stewardship was that his method of keeping The Liverpool Way going was to do nothing.

At the famous Anfield press conference to announce the deal, both Hicks and Gillett said almost all the right things, though perhaps the lapse into “franchise” speak sparked the alarm bells for some even then.

Gillett, 69, said: “Our main priority is winning, then passion, respect for tradition, and legacy.”

“We didn’t come over here to be the guys to milk the franchise,” said Hicks, 61. “It is not just about money. If I just wanted to make money there are other things I could do.”

Yet milking the franchise and failing to respect that tradition are the two charges most laid against the Americans today.

FINANCE
While the initial deal did indeed not put debt on the club, it was so short-term as to need renegotiating last month.

The new £350m deal with Royal Bank of Scotland and Wichovia puts £105m of debt directly on Liverpool FC, with £60m committed for the first stage of work on the new stadium and the rest for transfers and normal capital workings.

Some, though not all, accept that as legitimate, but it is the part of the debt placed on Kop Football Holdings, the company formed by the Americans to run the club, which is most controversial.

A spokesman for Hicks recently made it clear that the asset itself – ie, Liverpool Football Club – will be expected to “service” that debt of almost £200m, though with Gillett and Hicks on standby if the club fails to produce the necessary profits. Essentially, the club pays for the loan used to buy the club.

It should not come as any huge surprise. As early as last March, Daily Post business editor Bill Gleeson warned of possible repayments of around £21m a year, perhaps by the club paying its first ever dividend to the new shareholders. With refinancing, those estimates have jumped to around the £30m mark.

It is now clear the only thing which prevented the whole debt coming onto the club at this stage was the stubborn refusal of both chief executive Rick Parry and former owner David Moores to sanction it. Both are members of the Kop Holdings board (along with Hicks and Gillett, and sons Foster and Tommy).

The Daily Post has learned that bankers demanded an agreement from all six board members on the refinancing deal, allowing Parry and Moores the opportunity to block it.

Removing them from the board at this stage would have been viewed as too antagonistic, so the compromise was agreed.

Rick Parry’s letter to season ticket holders last February saying “the club is in very safe hands” is suddenly ringing distinctly hollow for many.

It is not quite Glazer, but it is a mini-Glazer and the natives are not just restless, but rebellious. A new fans group, Sons of Shankly, intends to boycott club merchandise as part of a campaign to hit the owners where it most hurts. Others, led by the University of Liverpool’s Rogan Taylor have launched a radical plan to buy the club with a one member, one share, one vote proposal which seeks 100,000 investors at £5,000 each. Both could be overtaken if the DIC bid materialises as expected, though some in the Anfield hierarchy believe fans are clinging to an option they know little about.

“The question you should ask fans is what details they know of the DIC bid? The reality is most know hardly anything and are grasping that option because of the anti-American feeling,” said one senior figure.

THE STADIUM
“I’d rather be a lucky general than a good one,” was how Napoleon put it, and in that sense Messrs Hicks and Gillett shouldn’t be looking to enter too many battlefields any time soon. When they took over, the Stanley Park stadium was costed at around £225m. But they thought the designs “obsolete” and new designs were commissioned by Dallas-based HKS.

Unveiled in July, 2007, to almost universal approval, they offered the tantalising prospect of future expansion to beyond 76,000 seats, making the stadium larger than Old Trafford.

The new cost was £300m but that didn’t stand still for long. Just a few months later and a cost of £450m had developed, thanks to rising steel and construction costs worldwide. At the same time, the value of the dollar has plummeted by around 10% in a year against the European currencies in which Liverpool FC does most of its business, making the costs weigh even heavier on two men whose assets were also almost completely held in dollars.

On top of that, the global credit crunch has made borrowing money even more expensive. The first plans were scrapped and a revised plan for a straight 70,000 seat stadium by HKS was unveiled last month, costed at £400m. Work has not started properly yet and another huge loan will be needed to pay for it.

INSTABILITY
The first cracks in the normal united front presented by Liverpool FC to the world were between manager Rafael Benitez and the two Americans. The frustrated Spaniard – regarded by insiders as “difficult” – was told to concentrate on improving the team when he wanted to be dealing for players, prompting his infamous “I am concentrating on preparing my team” press confer- ence last November where he repeated the mantra ad nauseum to a bemused press pack.

Then came last month’s shock confirmation from Tom Hicks that he and Gillett had spoken to Jurgen Klinsmann about possibly replacing Benitez as an “insurance policy”.

The chants in support of Benitez, the man who had delivered Istanbul and one of the great FA Cup finals, were now allied to calls for the removal of the Americans.

Behind the scenes Gillett, 69, has been increasingly angered by his partner’s public gaffes and their relationship is now considered deeply strained. Gillett refused to put his name to the press release regarding the refinancing deal, and has not commented publicly on it. His son Foster left Liverpool three weeks ago, and a return in any meaningful capacity is regarded as unlikely. A source said: “Announcing the refinancing like a triumph was a mistake, that’s why Gillett didn’t want to put his name to it. Hicks will never understand The Liverpool Way.”

THE SOLUTION
So what to do? While Tom Hicks has regularly stated his intention to stay at Liverpool – despite admitting talks with DIC about selling them a 15% stake – sources say George Gillett is hoping his partner will take a profit on his shares and sell to the Arab consortium, “but he doesn't expect it to happen”. Gillett himself could take the money thought to be on the table from DIC, or both could go. One of the problems is Hicks’s valuation of the club at £1bn because of the revenues which he believes the new stadium will create come 2011. It is astonishing that, at Liverpool FC, once a bastion of stability, neither the owners, the chief executive, any of the board – or, indeed, the manager – can be assured of their current position.

MP gives his backing to Liverpool fans’ buy-out plans

An early-day motion has been tabled in the House of Commons welcoming Rogan Taylor’s “Share Liverpool FC” concept.

MP John McDowell has signed the motion supporting the idea of 100,000 Liverpool fans putting in £5,000 each to take over the club.

The Liverpool-born MP said: “The Share Liverpool FC initiative could be an absolutely huge development for football in this country, and if it succeeds will show that there is an alternative route to the corporate takeover of clubs with all the attendant dangers for the clubs and fans.

“Football is rightly the property of those who go every week, commit their life’s savings and every second of their time and energy for the club they love.”

In response, Rogan Taylor said: “It gives us a lot of heart to hear this kind of encouragement and backing for our proposal. The website www.shareliverpoolfc.co.uk is receiving a tremendous number of visits and in a few days we should be able to put some figures on just how many fans have signed: Count me in!”

Asked about Saturday’s post-match Kop demonstration, Mr Taylor said: “I knew it was coming. I would not like it to be confused with the shareholder group proposal, but I understand how they feel.

“With our proposal, you can sort the issue out for ever and the club can never be sold again.

“At the moment, we are renting the club from the Americans, but with this idea fans can own the club themselves – like you own your own home and do not have to pay rent.”

Hundreds of fans stayed behind on Saturday to call for the American owners Tom Hicks and George Gillett to leave the club.

FEBRUARY 2
Dubai bid to divide
Liverpool FC’s American owners

By Ian Doyle & David Bartlett - Liverpool Daily Post

Dubai-based consortium DIC was last night set to join forces with Liverpool FC co-owner George Gillett in a bid to buy out his partner Tom Hicks.

Events could move forward within a matter of days, with figures close to the club anxious to see a rapid conclusion to what is seen as a damaging distraction at a crucial time in the season.

Relations between Gillett and Hicks are at an all time low, with Gillett remaining silent, but understood to be privately furious with his partner’s unsanctioned public statements over club affairs.

Gillett originally brokered the deal to buy Liverpool, but was forced to bring the significantly wealthier Hicks on board to be able to afford the buy-out.

Now, with the first anniversary of the takeover looming next week, relations have soured between the two men to such a degree that Gillett’s son Foster, who moved to Liverpool to represent the Americans and work alongside club chief executive Rick Parry, returned to the US 3½ weeks ago, and has not been seen at the club since.

The Daily Post understands that Foster Gillett and his wife have no plans to return to the city, despite having recently bought a £1m home in Woolton. The final twist of the knife for George Gillett came when Hicks went public last month with their approach in November to Jurgen Klinsmann as a possible replacement for beleaguered manager Rafael Benitez.

DIC (Dubai International Capital), led by Sameer Al Ansari whose £4,500 a share offer for Liverpool last year was trumped when Hicks helped Gillett to bankroll a successful £5,000 a share offer, are known to be keen to test the resolution of the Americans with a new offer.

Hicks has stated repeatedly that he has no intention of selling in the short term. It is believed he sees the potential to sell the club for well over £1bn in 2012, if the 70,000 seater stadium plan is delivered.

But Gillett is equally determined to hang on to his interest in the club, seeing the whole takeover as his deal, with Hicks merely providing the financial clout to make it happen.

With relations between the pair at such a low ebb, insiders doubt whether both of them can remain as co-owners. The Dubai proposal would allow Gillett to carry forward his plans, while allowing Hicks an exit-strategy with a healthy profit on his 12 months investment.

One source close to the negotiations told the Daily Post last night: “Discussions are still ongoing with DIC. They would be happy to take Hicks out and work with Gillett, or they would be happy to take both of them out.

“But DIC doesn’t want to pay Hicks a huge premium. The key is to get a deal done within days rather than weeks.

“All this has been a huge distraction at the club. Hicks insists on valuing the club at £1bn because he includes the valuation after the stadium is in place, yet it is not even built and doesn’t even have planning permission for the 70,000 seats.”

Hicks has matched Gillett’s £20m personal investment in the club following last week’s £350m refinancing deal, and is likely to be offered double that sum by the Dubai consortium to walk away.

No-one for DIC was available to comment last night while Mr Gillett’s office declined to discuss the matter.

Liverpool FC had no comment to make on the issue.

But a spokesman for Tom Hicks told the Daily Post he remained determined to stay at Liverpool FC.

He said: “As we have said previously and repeatedly, Liverpool Football Club is not for sale.

“Mr Hicks has been very clear in terms of the club not being for sale and that has not changed in any way, shape or form.”

Thor Zakariassen ©