JANUARY 30
Liverpool FC fans in buy-out sensation

Liverpool Echo

A new group is preparing a plan to buy out Liverpool FC's
US owners.

It is understood the group comprises high-profile LFC fans, legal experts and people in senior public positions.

They are believed to be proposing a Continental-style model where fans own a huge stake in major clubs.

The ECHO understands the group plans to raise £500m to buy the club AND finance a new stadium.

JANUARY 30
Kraft hints at Liverpool bid

By Peter Fraser - Sporting Life

American businessman Robert Kraft admits he has not ruled out a possible takeover of Liverpool.

Kraft owns American football side New England Patriots and Major League Soccer outfit New England Revolution.

And the businessman - who is founder, chairman and chief executive of the Kraft Group - was strongly linked with a bid to buy the Reds before the Merseyside club was taken over by fellow Americans George Gillett and Tom Hicks for £470million in 2007.

However, Gillett and Hicks are rumoured to be unsettled on Merseyside following Liverpool's lacklustre form and a much publicised bust-up with manager Rafa Benitez regarding the club's January transfer policy.

Dubai International Capital are thought to remain interested in a bid to buy out Gillett and Hicks, after withdrawing from the race to own the Reds last year, and Kraft has now hinted that he could also consider a takeover at Anfield.

"We haven't ruled it out completely," Kraft told Sky Sports News.

"But I'm worried a little bit. I want to be able to win whatever we do. But there are no rules in terms of spending on players.

"We would never want to be in a business where we couldn't compete and right now some of the structure doesn't allow you to compete on a level playing field."

And Kraft admits he has met with David Moores, who was Liverpool chairman before selling his stake to Gillett and Hicks and is now a director at Anfield, in the past.

"I spent a lot of time with Mr Moores and his group in Liverpool and we know something about building an opportunity," Kraft added.

"The fan base in Liverpool is a lot like the fan base of the Patriots when we bought them.

"They are dedicated fans if you give them a quality product and they know you are doing their best to win."

JANUARY 27
Hicks plans long stay at Anfield

BBC Sport Online

Liverpool co-owner Tom Hicks has insisted he plans to retain his stake in the club for the foreseeable future.

"There is no question in my mind that I will still be an owner of Liverpool Football Club in five years," he told BBC 5 Live's Sportsweek programme.

Liverpool have been the subject of speculation about a possible takeover by Dubai International Capital.

Hicks said that was never a "serious possibility" but the BBC understands he was in contact with DIC last Friday.

It is not clear what that conversation was about but Hicks said: "I can't think of a price where I would be interested in selling."

The Texan admitted speaking to DIC "a few months ago" about a "10% to 15% participation" in the club but DIC felt the price was too high.

"They would have been a minority investor and we would have used that capital to build a new stadium. We'll find other ways to capitalise the new stadium," he said.

Hicks, who along with fellow owner George Gillett took over the Reds in March 2007, confirmed a £350m refinancing package was put in place last week, with £105m of that as debt tied to the club.

Of that total, £45m will be used for future player transfers and to meet the club's working capital needs, while BBC sports editor Mihir Bose said £60m will provide the start-up money for the new ground.

"The refinancing will provide the capital for the next year-and-a-half to take the stadium move forward," added Hicks.

He repeated his backing for manager Rafa Benitez despite revealing earlier this month that he held talks with German Jurgen Klinsmann in November about taking over as manager in case the Spaniard left the club.

"We have a great manager who has our support," he said.

"After our meeting on 16 December he has shown his strong intent to do the right thing by the club.

"Rafa's got a contract for two more years and hopefully he'll stay for longer."

JANUARY 25
Why do Reds fans want DIC?

By Mark May - Setanta Sports

With American duo George Gillett and Tom Hicks finally securing the refinancing of Liverpool Football Club, Reds fans are understandably dismayed that their club has fallen into the hands of a bunch of money men who appear to have no real love for the club and its proud history.

Of course, this is all different to when the duo sailed onto Merseyside in March 2007 amid much fan-fare, promising to make The Reds a European powerhouse again, not to mention capturing the elusive Premier League title their fans crave so much.

However, following the revelations that the club went behind the back of manager Rafael Benitez to seek out Jurgen Klinsmann as the new manager – an insurance policy according to Mr Hicks – and the refinancing of the club, Liverpool fans are more than wary now of the motives of the American billionaires.

In fact, a recent survey carried out by the Liverpool Supporters' network showed that 76% of 2,000 fans questioned said they would "seriously consider reducing their financial commitment to the club" if the current owners stayed in charge.

This is despite a considerable outlay by the pair to fund the capture of record signing Fernando Torres, investment in Liverpool's Academy, not to metion the costs involved in the plans to build a new stadium in Stanley Park.

Reds fans though now appear to be pandering to the feet of the Arab investment company Dubai International Capital (DIC) to save them from the evil reign of terror of Gillette and Hicks.

The company is an investment arm of Dubai Holding, which is owned by Dubai Crown Prince and United Arab Emirates Prime Minister Sheikh Mohammed bin Rashid Al Maktoum.

Sheikh Mohammed, whose family is internationally renowned for its running of the Godolphin horse racing stables, and is the world's fifth richest man, with an estimated personal wealth of $14 billion.

But why is it that Liverpool fans would welcome this company with open arms? Are there no lessons to be learned from the euphoria that greeted ‘the Yanks?’

DIC have a history of speculation throughout the world as they look to reach their mandate of $10 billion investment in global companies. The Dubai-based group can name Sony, Daimler Chrysler, Mauser and a host of other big corporations as recent investments where they hold a stake.

In March 200,6 they snapped up a variety of assets in Great Britain as they looked to increase their property portfolio in the country, purchasing Tussaud's Group - the theme park operator - for £800m. Tussaud’s group was subsequently sold in March 2007 to Merlin Entertainments for £1.03bn plus a 20% stake in the combined company, a handy profit of £200m in less than a year.

In August of 2006 they picked up Travel Lodge - the hotel group - for £675m. DIC were reported to be delighted to have added the company to their collection, with Sameer Al Ansari, Dubai International Capital's chief executive declaring: "It is a strong brand with growing potential.” Surely the words “strong brand” and “growing potential” are pure business parlance; the antithesis of the genuine football fan.

In fact, one of the apparent reasons former Liverpool chairman David Moores refused to sell the club to DIC last year, instead opting for the American option, was that DIC saw the club as merely a business asset, without regard to the fans.

DIC are well known for their ruthless streak and the Liverpool board were afraid they were not looking out for the best interests of the club.

Why is it then that Liverpool fans believe that their beloved club would be any different to any other investment the canny Arabs have made since the company was established in October 2004?

A banker with links to Dubai Holdings told The Daily Telegraph last year: "These guys are not after trophy assets. They buy and sell businesses for pure commercial reasons. They have proper investment objectives."

Of course with football being football, ethical considerations do not even get a mention! In a city that has faced many hardships in the past, particularly in its treatment of workers, it seems these considerations do not apply to potential owner.

While Manchester City’s Thaksin Shinawatra and Chelsea’s Roman Abramovich have what one might describe as chequered histories, it does not stop football fans from foaming at the mouth at the thought of a successful football team, regardless the trail of the money used to finance the side.

Dubai has up to 250,000 foreign labourers, which it treats less than tolerably, with many of whom living in conditions described by Human Rights Watch as being "less than human."

National Public Radio (NPR) – the privately and publicly funded non-profit membership media organization - reports that workers "typically live eight to a room, sending home a portion of their salary to their families, whom they don't see for years at a time." The BBC has reported that "local newspapers often carry stories of construction workers allegedly not being paid for months on end. “They are not allowed to move jobs and if they leave the country to go home they will almost certainly lose the money they say they are owed.”

But then what do football fans care of struggling immigrants in the Middle East? It appears for the moment at least that this investment firm will not be getting its hands of Liverpool Football Club. But should that time come, whose to know if one old adage will not ring true: out of the frying pan…

JANUARY 23
Hicks and Gillett re-loan will put
£150m debt onto Liverpool FC

Liverpool Daily Post

Liverpool co-owner Tom Hicks remains confident the long awaited refinancing deal will be signed, sealed and delivered tomorrow.

Sources close to Hicks say that it is now just a matter of ironing out a few minor details with the Royal Bank of Scotland and American investment bank Wachovia, and that the American’s stance that he is not interested in selling the club to DIC has not altered in any way.

As well as privately committing himself to announcing the financial restructuring deal tomorrow, Hicks has informed confidantes he will also reveal finalised plans for the new Anfield at the same time.

“Tom is in no doubt that the deal with RBS and Wachovia is going through and he is looking forward to revealing the new stadium design which is every bit as spectacular as promised,” said one source.

“There are a few minor glitches to be ironed out but nothing major – it’s pretty much just standard procedure for a deal on this scale.”

Should the deal be completed tomorrow it will result in a £350m loan being taken out. But, under the terms on the table, the entire debt will not be taken on by Liverpool.

It is understood the club will take on £105m, Kop Investment, the holding company set up by Hicks and Gillett in the immediate aftermath of last year’s takeover, will take on £190m, with the co-owners having been asked to put up £55m of their own money.

The fact that the loan is being arranged in this way represents a minor victory for David Moores and Rick Parry, who successfully argued with Hicks that the entire debt should not be loaded onto the club.

Moores and Parry, who remain on the Liverpool board, refused to budge from this position and their stance was one of the main reasons why the financial restructuring deal is only now nearing completion.

Had they capitulated, the likelihood is Liverpool would today be saddled with a debt of £350m.

But should the duo be removed from the board for any reason at any point in the future, there would be nothing to stop the entire debt from being shifted onto the club.

If Hicks’ plans come to fruition tomorrow as planned, the next stage of his plans will be the hunt for a further £300m loan to finance the construction of the new stadium.

JANUARY 22
Fears that Dubai rescuers may be scared
off as Liverpool tip towards crisis point

By Oliver Kay - Times Online

The turmoil surrounding Liverpool continued yesterday amid growing fears that the proposed “rescue plan” from Dubai International Capital (DIC) will be abandoned if Tom Hicks, the unpopular co-owner, proceeds today with a £350 million refinancing package that will plunge the club deep into debt.

Despite the grave misgivings of George Gillett Jr, his co-owner, and of the Liverpool board, Hicks intends to press ahead with a refinancing plan that has been agreed in principle with their bankers, the Royal Bank of Scotland and Wachovia. That plan, to transfer the duo’s existing £300 million debt to the club, will leave Liverpool facing annual interest payments in the region of £30 million, but the greater concern in the immediate term is that it may drive away DIC, the private-equity investment arm of the Dubai Government, which is regarded by many at Anfield as the potential “saviour” of the club.

There was optimism at Liverpool last week that Gillett, who is regarded as the more benign of the two owners, may be persuaded to veto the refinancing plan or that he may join forces with DIC in a bid to buy out his business partner. The expectation now, however, is that Gillett will reluctantly put his name to the refinancing package, which is regarded by the Americans as a means of stabilising their troubled regime at Anfield, at least in the short term, allowing them to proceed with plans to construct a new £300 million stadium on Stanley Park.

There is little doubt that Hicks and Gillett, faced with spiralling costs and hostility from the club’s supporters, are losing their appetite for the challenge they took on at Liverpool only 11 months ago, but they will not be forced into a quick sale.

Although they have held informal negotiations with DIC through a third party, they have no intention of selling unless they make a profit on their initial £234 million investment. They have already informed their bank that a proposed £300 million offer from DIC will be rejected out of hand.

The uncertainty at the club – not least over the future of Rafael BenÍtez, whose long-term position as manager appears untenable under the present regime after his much-publicised fall-out with Hicks – made for an unusually hostile atmosphere as Liverpool prepared to take on Aston Villa in the Barclays Premier League last night. After recent events, many supporters headed to Anfield preparing to direct their anger at the owners.

The “Reclaim the Kop” campaign has been influential in orchestrating the protests against the owners. In a prematch statement, it said: “These two . . . are not fit to be associated with our club. The current situation is unworkable. Rafael BenÍtez, with his ingrained sense of honour, dignity and morality, has been publicly humiliated by Hicks and Gillett. Rafa would have walked away by now but for one small thing the Americans will never ‘get’: he loves it here.”

Regardless of his wish to stay, BenÍtez appears certain to leave at the end of the season if Hicks and Gillett remain in situ. The Spaniard’s position was severely unstable even before Hicks admitted last week that he had held talks with Jürgen Klinsmann, the former Germany coach.

JANUARY 21
Time to end this desperate crisis

By John Thompson - Liverpool Echo

The roar of the Kop has been heard all over Britain and Europe. Tonight, an attempt will be made to send it right across
the Atlantic Ocean.

Liverpool fans are in a state of fury and dismay, convinced their world famous club is enduring the biggest crisis in its modern history.

And who can argue they are wrong?

A marriage that everyone hoped was made in heaven has spiralled into a nightmare captured in barely believable headlines, one played out amid a climate of deep distrust.

There is no doubt today that the majority of match-going supporters – surely still the most important people at any football club – believe the American dream is for them over and beyond repair.

And tonight at the game against Aston Villa they are set to call on Tom Hicks and George Gillett to do the decent thing – and grant them and their club the quickie divorce that many now believe offers the most dignified, possibly the only honourable route out of here for all sides.

Hicks and Gillett may see it differently and believe this fractured marriage can be repaired. Particularly if they really are intent on keeping the house.

They own it – and this is up to them.

They are hugely successful business partners who made a first class first impression when they bought Liverpool almost a year ago. They were appropriately welcomed with open arms by an Anfield faithful yearning for more success.

But stadium delays and confusion, alleged personal rifts, claims of imminent broken promises which will load all their personal debt onto the club, and a series of unsightly public rows with a driven manager whom most supporters still love and believe in, have rocked Anfield to its core.

This is not the Liverpool way.

And for the sake of a club which someone outside Merseyside recently described as ‘a national treasure’, it just cannot go on like this any longer. Particularly when a rejected suitor is waiting on the sidelines with a genuine offer which Liverpool fans are praying Tom and George cannot and will not now refuse.

An SOS sign was hung out on the Kop last week to Dubai International Capital.

It will be there again tonight, but will not be walking alone in its display this time.

Liverpool fans may know as little about the Dubaians as they did the Americans.

But the sure truth is the Dubaians have never fallen out of love with the idea of owning Liverpool, even though the long – possibly overly long – initial engagement was broken off suddenly amid acrimony, as pre-wedding nerves on both sides became tested.

Their interest in securing a deal at Anfield has never dwindled, not least because they are convinced the American re-financingŠnumbers simply do not crunch going forward and put Anfield in even more jeopardy, even more harm’s way.

It is not just the supporters and other experienced experts who care about the club who believe there is a real risk of Liverpool emulating Leeds United – possibly worse.

When there is, it seems, a genuine prospect of the Royal Bank of Scotland claiming default on the current mortgage and re-possessing the property, who can blame them?

There is no doubt Liverpool fans are anxious to see the Dubaians allowed in to rescue their club from this situation. And if there is any doubt, the odds are it will vanish this evening with a clarion call to DIC spilling from the Kop.

It no longer matters how Britain’s most successful football club got here. Right now it doesn’t matter who is to blame and how.

All that matters is that a truly great European football club and its lost, bewildered and angry supporters, get out of here. And fast.

Tom Hicks and George Gillett, are deeply committed family men who for all their wealth and hard-headed business brains surely understand that family ultimately comes first.

Particularly when that family feel and culture is actually a crucial part of their business asset, as much as it is an emotional reality.

The Kop is real currency – and losing it will cost in dollars, as well as in damaged eardrums.

For that simple reason, the co-owners must today do what they know is right in their hearts as much as their heads for a club steeped in that family tradition. One in which Kopites here have invested their lives, not just their hard-earned money.

If the Americans sincerely believe they can somehow get Liverpool out of this crisis and repair the damage then maybe, just maybe, they can risk taking that chance.

But the supporters at Anfield, many genuinely sick to their stomachs with worry, may now never be convinced, so serious is the collateral damage and loss of trust all round.

If Hicks and Gillett deep down accept that it just hasn’t worked out and that no amount of counselling can help, it is to be hoped they, or one of them, will sell their share to the Dubaians and walk away with no hard feelings either way.

Liverpool’s first business love is today waiting in the wings. She won’t go away and it’s clear the majority of the fans don’t want her to – though if there is to be a second marriage it might be worth hiring a Philadelphia lawyer to draw up the pre-nuptial contract.

But that, if ever, is for another day.

Liverpool Football Club and it’s wonderful, devoted supporters have suffered enough.

However it happens, every fair-minded and honourable man will surely agree it is high-time this desperate crisis was swiftly brought to a dignified end.

JANUARY 20
Hicks not selling up

By Joseph Caron Dawe - Setanta Sports

Liverpool co-owner Tom Hicks has issued a categorical denial that he is planning to sell up his stake in the Premier League club after mounting speculation the American would sever his ties with the Merseyside outfit.

Media reports have led to rumours that Hicks and George Gillett, his partner in ownership, would cash in their portion of the club by accepting a mooted offer from Dubai International Capital.

DIC – the investment arm of the Dubai government – was reported to be preparing a £500 million offer, but Hicks has issued a statement which has termed such reports as ‘a complete fabrication and ... absolutely and categorically untrue’.

Hicks said in a statement released on Sunday evening: "I have not received any offer to purchase the club from the DIC or anyone else, much less accepted any such offer. Nor do I have any intention of doing so.

"Whoever is behind this false report, the facts are that I and my family have always been, and remain, fully committed to co-owning the club; that no-one in my family has ever indicated any intention or desire to sell our stake in the club; and that we expect and intend to be co-owners of the club, and to actively and enthusiastically support the club's manager, players and fans for many years to come."

Hick’s and Gillett’s positions at the club have become somewhat precarious of late with the recent upheaval caused by their confession they had met with Jurgen Klinsmann about the managerial role at Anfield.

JANUARY 19
Liverpool set for fresh takeover bid

Ireland.com

Dubai International Capital - the investment arm of the Dubai Government - is preparing to launch a £500million bid to buy Liverpool, according to reports.

BBC Sport claim an offer is in the process of being made to American co-owners George Gillett and Tom Hicks.

Initially it was thought DIC, bankrolled by Sheikh Mohammed Al Maktoum, were interested in buying Hicks' 50 per cent share.

However, it is claimed DIC are now set to make an offer for the complete buy-out of the American duo.

The Dubai-based group were close to their own takeover of the Anfield club 12 months ago before the Reds' then chairman David Moores decided to go with the USA investors.

On Thursday a spokesman for Hicks insisted neither of the owners was considering selling their share and both remained fully committed to the club.

JANUARY 18
Fairclough wants DIC bid

By Nick Royle - Setanta Sports

Former Liverpool striker David Fairclough has hinted that he would support the sale of the club by co-owners George Gillett and Tom Hicks.

Gillett and Hicks insist they remain "fully committed to the club" despite Dubai International Capital reportedly preparing a bid for the club.

Last January, DIC lost a bid to take control of the club but it is believed they are now set to try to buy the American's 50 per cent stake in Anfield.

With the American co-owners coming under pressure from supporters for the equivocal backing of manager Rafael Benitez, Fairclough suggests that a DIC bid would be welcomed.

“I think that the DIC bid may be a better option, but it is all speculation,” Fairclough told Setanta Sports News.

“They have a lot of wealth, and anybody who has control of Liverpool needs a huge reserve. The stadium needs to be built, as Liverpool need to get to a bigger facility.

“Funding has to be found for team-building. Hopefully an answer will be found sooner rather than later, and in the meantime Liverpool keep winning on the pitch.”

A recent admission by Hicks that they had discussed the possible acquisition of former Germany boss Jurgen Klinsmann to replace Benitez has led to consternation amongst supporters, and Fairclough firmly believes that the co-owner was wrong to undermine the Spaniard.

“I am very much a Rafa Benitez fan, and I hope he can continue the things that he has started.

"I think he has been frustrated at the lack of funds in the past. However, most people think that he is moving in the right direction."

JANUARY 17
Hicks denies Anfield exit plan

TEAMtalk

Tom Hicks' spokesman insists the Liverpool co-owner has no intention of selling his Reds stake to Dubai International Capital or anyone else.

A year ago this month, DIC were stunned by the last-minute failure of their bid to take control of the club but it is believed they are now set to try to buy Hicks' 50% stake in Anfield.

And on Thursday, DIC made no attempt to play down speculation when their spokesman said: "We do not comment on such things, we have nothing to say on this."

However, a spokesman for Hicks dismissed the reports, saying: "Mr Tom Hicks and Mr George Gillett remain fully committed to the club.

"Any suggestion that Messrs Hicks and Gillett are contemplating a sale of the club or any portion thereof to DIC or anyone else is categorically untrue."

As the turmoil over the ownership of Liverpool by Hicks and fellow American Gillett continues, it has become clear DIC have never given up hope of owning the club, with lifelong fan and founder and chairman of DIC Sameer al-Ansari believed to be at the forefront of new moves.

It is the 44-year-old Loughborough University-educated financier who was the prime mover in last January's failed bid for the club, working on behalf of the real power behind DIC Sheikh Mohammed Al Maktoum.

A year ago then-chairman David Moores changed his mind at the last minute with DIC expecting to clinch their deal, and opted instead to sell to the Americans.

A board meeting at a London Docklands hotel hours before last January's match at West Ham signalled the change of heart.

But Al-Ansari has maintained close links with Liverpool, and in particular chief executive Rick Parry, and still attends matches regularly with his family.

And it is understood he has persuaded Sheikh Mohammed to become involved in a second bid.

Al-Ansari has also recently been linked with Sir Richard Branson's move to take over Northern Rock.

His Liverpool devotion was underlined recently when he said: "It took me two weeks to get over that (the failed bid), but it didn't dent my passion, I still go to every match when I am here."

The Liverpool Echo, in a report on Thursday, claimed an offer for Hicks' shares is being prepared and may even have been agreed in principle.

It was Gillett who brought Hicks on board last year when he did not have enough money to mount a solo bid for the club. Exactly where it would leave Gillett if DIC did buy into the club is open to doubt.

But the two Americans have discovered they have lost the backing of the club's supporters in recent weeks, compounded by the shocked outcry following Hicks' confirmation the pair had met Jurgen Klinsmann and offered him boss Rafael Benitez's job.

Hicks and Gillett have to reach an agreement with the Royal Bank of Scotland within six weeks to refinance the loan they took out to buy the club in the first place.

And there is major opposition from within the Liverpool board, believed to come from Moores and Parry, to any move that will see the club take on some of the debt from the loan.

Hicks could accept the bid and get out now with a profit, or continue with the refinancing plans, believed to be a matter of days from completion.

But with Liverpool fans preparing further demonstrations against the Americans at Monday's home match with Aston Villa, Hicks and Gillett could decide that their problems will only escalate if they continue to control the club from their bases in Dallas and Montreal.

However, the fact is that plans for the new stadium have still to be agreed a year after the takeover and funds to allow Benitez to compete with Manchester United and Chelsea have not been made available.

Hicks recently said he did not want to sell his shares but the reaction to his and Gillett's tenure this week from the fans could well see a change of heart.

JAUARY 17
Fans in fear as future of
Liverpool on knife edge

By Tony Barrett - Liverpool Echo

During an exhaustive search for investment in Liverpool Football Club Reds chief executive Rick Parry spoke of the need for any deal to be absolutely right.

“You can only sell the family silver once,” he famously remarked.

Today Liverpool are facing up to the previously unimaginable possibility of half of the family silver being sold for the second time in less than a year – if Tom Hicks is willing to sell.

DIC loom large on the Anfield horizon again.

After missing out to Hicks and George Gillett last time around Sheikh Mohammed Al Maktoum is understood to be ready to do everything in his power to ensure it does not happen again.

But despite being one of the richest men in the world Sheikh Mohammed does not use his immense wealth to pay over the odds for any business.

When he was beaten to the punch by Hicks and Gillett last February one of his most trusted aides told the world bluntly “we won’t overpay for assets”.

So, if a deal is to be struck, it must suit all parties.

DIC chief executive and self-confessed Liverpool fan Sameer Al Ansari intimated the investment vehicle’s interest in the club ended when Hicks and Gillett took control.

But in reality their interest has never really gone away.

In the autumn they entered into talks with Hicks and Gillett with a view to snapping up a minority share of between 10-20% - only for any potential deal to founder on the Americans’ £1bn valuation of the club.

Now they are looking at setting up a deal in which they would buy, at the very least, a 50% share in Liverpool.

A firm bid could be forthcoming within days.

It is undoubtedly decision time for Hicks and Gillett who thought they had seen off DIC’s interest once and for all when they paid £218.9m for Liverpool last February.

But since then plans to refinance their initial purchase and pay for the long-awaited new Anfield with a new loan running into hundreds of millions of pounds have been slowed down by the American credit crunch making borrowing money much more difficult than it was 12 months ago.

There has also been a reticence from honorary life president and former chairman David Moores and Parry to sign up to a refinancing package which will plunge the club into hundreds of millions of pounds of debt.

As progress has stalled DIC has stepped up its long-standing interest and it is now ready to pounce.

Their desire is understood to have been fuelled by speculation Moores is becoming increasingly minded he should have gone with DIC rather than Hicks and Gillett when both parties put forward rival bids last year.

The fact Liverpool fans displayed their displeasure with the way the club is being run by the American pair at Anfield on Tuesday night did not go unnoticed in Dubai.

Banners unfurled on the Kop during the FA Cup tie against Luton Town sent an SOS to DIC and there were several negative chants directed at Hicks and Gillett.

It could be that, like his fellow countryman, Man United owner Malcolm Glazer, Hicks is prepared to ride out any storm of controversy whipped up by unsettled fans.

But as a businessman of international repute, he will also be aware such naked negativity from his customers is not sustainable in the long term.

Liverpool’s very future is today on a knife edge.

The family silver could be up for grabs again.

Although it is still too early to tell whether it will eventually change hands, DIC are certainly ready to test the water.

Dubai International Capital (DIC) was established in October 2004 as the international investment arm of Dubai Holding.

The purpose of DIC is to create a return for its shareholder Dubai Holding and its ultimate shareholders, the ruling family of the Emirate of Dubai.

Its assets and investments include:

Travelodge - the UK budget hotel group was purchased in 2006 for £675m.

Mauser Group - the German industrial packaging company - one of the world’s leaders in its field – bought in June last year for 850m Euros.

A 3% stake in Sony acquired for $1.5bn.

A substantial stake in HSBC.

A 2% stake in German carmaker Daimler. which cost $1bn

A $1.25bn stake in the New York hedge fund Och-Ziff.

JAUARY 17
Dubai to make Liverpool FC bid

By Tony Barrett - Liverpool Echo

Dubai International Capital is ready to make an offer for Tom Hicks’s stake in Liverpool FC.

The ECHO understands senior executives at the Dubai-based international investment company were given the go-ahead by Sheikh Mohammed Al Maktoum to launch a second bid to buy into Liverpool in a year.

An offer has been agreed in principle.

Co-owners Hicks and Gillett are edging closer to clinching a refinancing deal.

But DIC are hoping to make a move before any deal is completed.

Hicks and Gillet enjoyed a honeymoon period after their acquisition of the Reds.

But recent revelations they talked to Jurgen Klinsmann about the possibility of replacing the hugely popular Rafa Benitez as manager have led to them falling out of favour with the Liverpool fans.

While the financial restructuring deal, which would give them the necessary collateral to fund the building of the long-awaited new stadium, remains incomplete, DIC believe a window of opportunity still remains open to them.

Whether Hicks is willing to sell is another matter entirely.

The Dallas-based multi-millionaire is on record saying he is not interested in selling his stake, even though there are tensions between himself and Gillett about the proposed refinancing deal.

In a recent interview with the ECHO Hicks said: “I just want to clear up with you that I am not selling any of my shares to anybody.

“I have no idea why anyone would think that. It was just rubbish.”

But with Sheikh Mohammed, one of the world’s richest men, now back on the scene Hicks looks likely to face some tough decisions in the days to come.

On the one hand a deal with DIC could present him with a sizeable return on his initial investment and an opportunity to walk away from the dual problems of securing the necessary loans to service their own debt, fund the new stadium and winning the fans over all over again.

But, on the other, there may be a reluctance to part with an asset which he fought so hard to acquire, one which he firmly believes can pay dividends in the long term.

Hicks insists financial restructuring could be complete within days, and if he is proven right it will make an immediate offer from DIC less likely.

The American pair have six weeks to secure a £350m loan that would refinance their original purchase of the club.

Hicks recently told the ECHO he hopes a deal can be signed off with the Royal Bank of Scotland and the US investment bank Wachovia by the middle of next week.

If, as expected, DIC follow up their interest with a firm bid the ownership of Liverpool FC could change for the second time in a year.

Club officials said today: “We do not comment on speculation.”

JAUARY 17
Owners' dispute eclipses Liverpool's new deal

By David Bond - Telegraph.co.uk

Liverpool's American owners are edging closer to clinching a breakthrough refinancing deal with banks despite growing tensions between the club's joint chairmen Tom Hicks and George Gillett.

According to City sources, a £350 million deal with the Royal Bank of Scotland and American investment bank Wachovia could be announced early next week. It is understood lawyers for both sides are now working through the fine print of the funding package which, if confirmed, will come six weeks before an existing one-year loan used to finance the American takeover expires. Once concluded the Americans hope the deal will restore a sense of calm to Anfield after a period of extraordinary instability.

But the Daily Telegraph has learned that there remains deep uncertainty about the relationship between Hicks and Gillett, the two US sports entrepreneurs who bought Liverpool in a £220 million deal last February. And even if the refinancing deal is confirmed, insiders are worried about how much longer the partnership will last.

Gillett is deeply unhappy with his joint owner following his explosive remarks in which he confirmed hat the pair had approached former Germany coach Jurgen Klinsmann about taking over from Rafa Benitez. Gillett has been seriously unsettled by the reaction.

He is understood to be all the more irritated as the Hicks gaffe came despite assurances from the Texan billionaire that he would stay silent until the club's future was more secure.

Gillett has also been reluctant to press ahead with the refinancing plans, fearing that the new structure will load too much debt on to the club's balance sheet. It is also known that Gillett, the less wealthy of the two men, has been struggling to meet the banks' demands to put up £75 million each of cash and personal guarantees.

At one stage the growing split threatened to plunge the club into a new takeover battle, just 12 months after the Americans squeezed out Dubai International Capital, the investment company of Sheikh Mohammed bin Rashid al-Maktoum.

That remains a possibility, but any hopes DIC had of doing a deal with the Americans appeared to be fading.

DIC are understood to be prepared to bide their time, believing that the relationship between Hicks and Gillett could be beyond repair and that the refinancing will only be a short-term measure.

Under the terms of the deal, around half of the £350 million of debt is to be placed on to Liverpool's books, partly to finance the start of work on the new £400 million stadium at Stanley Park and to refinance £20 million of loans for new players. The move is a reversal of the vow the Americans gave when they took control not to copy the approach taken by the Glazer family at Manchester United.

The rest is to be secured against Liverpool's parent company Kop Holdings. Having blocked attempts to load all the debt on to the club last year, former chairman David Moores, who remains a director, and chief executive Rick Parry, are uneasy about how the borrowing will be serviced, with interest payments of £30 million a year.

Questions unanswered
How sound is the Hicks/Gillett relationship?
The Jurgen Klinsmann gaffe has placed extra strain on a partnership already cracking over the £350m refinancing.

How much of the £350m debt will be placed on the club?
About half, with the rest on parent company Kop Football - with interest of £30m a year.

What happens if Gillett decides to pull out of the bank deal?
He could look to bring in Dubai International Capital and try to force out Hicks.

Will DIC give up on their plans to own Liverpool?
No. They will bide their time but a quick deal is unlikely if Hicks strengthens his grip.

What does the bank deal mean for Rafa Benitez
It looks like a question of when, not if, the Spaniard leaves.

JANUARY 15
Expert: Benitez could take legal action

Ireland On-Line

Liverpool co-owner Tom Hicks’ admission that talks were held with Jurgen Klinsmann was “not well advised”, according to a leading employment lawyer who also believes Rafael Benitez would have a strong claim for constructive dismissal.

There are suggestions Benitez could pursue legal action against the club after Hicks yesterday confirmed talks were held with the former Germany coach about the manager’s job at Anfield.

Benitez would have to resign before taking legal action but Richard Linskell, employment partner with Dawsons, said the two parties would be more likely to agree a pay-off rather than go through the courts – and admitted a lack of understanding of British employment law could have been behind Hicks’ startling revelations.

He said: “Certainly I would say it was not well-advised.

“He may well of course have an American approach to employment law, and in America they have what is called employment-at-will and they can say what they like and dismiss people without any repercussions.

“He may be coming from a legal system where he can say that sort of thing without fear of legal consequences. I am not an expert on the American legal system but I am aware of the basics. I couldn’t really say whether he has even thought about the issue or whether he has just shot from the hip, as people in that sort of position often do.”

Linskell explained Benitez’s position, further, confirming the claim would be on the grounds of constructive dismissal.

He continued: “When someone is claiming constructive dismissal, which is what, I understand, it has been suggested Rafa Benitez has been saying, they are basically saying their contract has been breached by the company as a result of the conduct – in Benitez’s case the conduct is openly plotting his replacement, effectively, and briefing the press – and I don’t know what other allegations he might make.

“What he’ll be saying is ’well okay, I’ll be resigning, and I’ll be claiming for the period you would have had to pay me had you not breached my contract’. In his case that would be to the end of the contract which I understand is about two years and I understand the figure being talked about is about £6million.”

Linskell reiterated Benitez could not take action while remaining the club’s manager.

He said: “One of the things about constructive dismissal is you do have to actually resign to enforce your rights. He would have to resign then bring a claim.

“Football clubs usually pay someone up, to the end of their contract.

“Partly because that’s just what everyone does and it seems to be the accepted practice (in football) but also it saves the embarrassment and time and legal cost of litigation if a manager were to sue for damages.”

JANUARY 15
Dalglish: Liverpool should
be backing Benitez

Liverpool Daily Post

Liverpool legend Kenny Dalglish today gave his backing to Reds manager Rafael Benitez as the controversy over his future at Anfield reached new levels.

Dalglish insisted Benitez, who has led Liverpool to two Champions League finals in three seasons, ‘did not deserve to be hanged’ for letting his frustrations get the better of him last November.

Dalglish said the backing of the fans in his hour of need was ‘the least he deserves’.

He spoke after revelations by Reds co-owner Tom Hicks yesterday that he and George Gillett had met Jurgen Klinsmann to line him up as a potential successor to Benitez.

Dalglish spent 14 years as a player and manager at Anfield, winning three league titles and guiding the club through the dark days of the Heysel and Hillsborough disasters in the 1980s.

He said: "When Rafa was flying, winning the Champions League, you would not need support - you get that automatically, don’t you?

“But when it’s not going so well, that’s when he really needs his allies to get round about him, stand beside him and help him. Because that’s the least he deserves.

“He deserves the help of a lot of people because he’s brought a lot of happiness to an awful lot of people here.

“Over the past couple of months things have not been as good as we hoped they would be.

“But this is when they need to stand up and be counted and get shoulder to shoulder with their man – and their man’s Rafa - and stand beside him.

“He needs it – he needs the help, he needs the confidence in himself.

“Support is the least he deserves for what he’s done for this football club.

“He’s moved lock, stock and barrel over here, which is easier said than done.

“He’s integrated into the Liverpool way of things. And apart from the outburst last November, he’s conducted himself admirably.

“He’s had one blemish – but that shouldn’t hang him.”

Added Dalglish: “The players need to believe in the manager again. They need to get a bit of confidence.. “Without confidence and belief in the playing area, your club is going to struggle on the pitch.”

The Scot, widely regarded as the greatest player ever to have pulled on a red shirt, said he was desperate to see an end to the continuing speculation regarding Anfield’s off-field issues.

He added: “I think it’s a disappointing phase when Liverpool Football Club, who have never washed the dirty linen in public, have contributed over past two or three months to a lot of headlines which really you had never seen before.

“I don’t know who is right and who is wrong. I don’t know the arguments or what goes on behind the scenes. But it certainly does no one any favours whatsoever.

“It affects the players, because they are looking for confidence.

“It affects the manager, because he’s looking for confidence – he doesn’t need the added pressure of this.

“And also it makes Rick Parry’s job more difficult

“ There’s always problems in your workplace but if there’s a problem you sort it out behind closed doors – you don’t sort it out publicly.

“ I thought the line had been drawn under it in November when Rafa was frustrated and came out with words that maybe he wished he had never come out with.

“But maybe his frustration got the better of him.

“I don’t know what would have caused Rafa to come out and say something like that if he didn’t have cause to say it. He must have been really frustrated about things.

“It might not have been the wisest thing to do – but you can understand his frustration.

“The man’s been a magnificent servant to Liverpool Football Club and it certainly showed in the aftermath of that in the support he had from the fans of the club.”

Dalglish said he feared the ongoing controversy was now spreading to the players.

He said: “I don’t think it’s a coincidence results haven’t been as good as everybody would have hoped.There’s a fair judgement there that would say what has happened off the pitch does affect what happens on it.

And the sooner they can kiss and make upthe better the football club will be.

“I don’t know who’s to blame. I’m not interested in who’s to blame. I don’t think anyone is interested in who’s to blame, saying it started here or it started there.

“I think the biggest interest is Liverpool Football Club.

“That’s the common denominator – and in the interests of the club I believe it would be best if it everything went back behind closed doors now.

He continued: “People have got to be more responsible about what they say publicly.

“What you say behind closed doors isn’t really that important.

“I don’t know whether there is a breakdown in communications or not and as Tom Hicks said, everything’s been resolved now.

“Well I think it might have been resolved – but coming out and saying they spoke to Jurgen Klinsmann is I think, in one way commendable, because it indicates maybe the guy’s honesty if that’s why he’s done it.

“But the other side of the coin is that they just don’t need it.

“Rafa doesn’t need it; the players don’t need the uncertainty and certainly the supporters don’t need it.

“And after the fans showed their support for Rafa the last time I would not be surprised if there was another show of support for the man at the game against Luton.

“I think fans will be very disappointed and frustrated. I don’t think they have ever had this before.

“When I was there you discussed it in private and that was it – it was finished.

“I think Rafa’s reputation was reflected in the support the punters gave him.

“Rick Parry has been there and very highly thought of as an administrator on that side and that’s no disrespect – everybody needs a good administrator and if you get one then you are lucky.

“But Tom Hicks and George Gillett, they are the ones that are new to the supporters.

“They are the ones the supporters can relate to least of all.

“So those two have got to have a look and say ‘What PR can we do?’

“What are we going to do to get back in favour with the supporters?

“Because at the moment, as this comes out, I don’t think they will exactly be flavour of the month or the favourite people at the football club.

“The sooner the football gets back on the pages and talking about how well Liverpool are playing and how great a result that was etc, then the happier everyone in Liverpool will be.

“It’s always better to see Liverpool win 4-0 rather than see they’ve been speaking to another manager for a contingency plan – that’s a certainty.

“And it’s always better to read about the football rather than issues in football. Once you start discussing issues within the football club publicly, then I think you start to get yourself some problems.

“I don’t think it’s a coincidence the results haven’t been as good since Rafa’s statement. So I think it’s there – the proof of the pudding is in the eating.

“I think the results have been affected and whether it’s because of this I don’t know.

“But is it too much of a coincidence? I don’t think so.

“I think the players want to see the manager to be seen getting the support and vice versa.

“They need the confidence and belief as well in themselves. They need to trust themselves.

“They are easily good enough to be doing better than they have done.

“So don’t let’s be using it as an excuse.

“But it’s understandable if it is partly the reason.

“They’ve got plenty of ability, plenty of players.

“They just need to look in the mirror. They are still the same people and players they were and still the same players they were two or three months ago before it happened.

“So I’d say let’s just get back to two or three months before it happened. Enjoy your football, believe in your manager and I’m sure they will get the support of the fans.”

“Tom Hicks and George Gillett came to Anfield with the blessing of everyone.

“I think they made a couple of mistakes along the way but then everyone makes mistakes.

“However, I think they have got to get themselves back into the favour of the Liverpool people.

“And to get out amongst them and be a wee bit more accessible wouldn’t do them any harm at all.”

JANUARY 15
Alan Hansen's blast over
Jurgen Klinsmann meeting

Liverpool Echo

Liverpool co-owner Tom Hicks' admission that he held talks with Jurgen Klinsmann can only "undermine" manager
Rafael Benitez.

That is the verdict of former Liverpool star Alan Hansen, who is at a loss as to why Hicks went public on the situation.

Hansen said : “I haven’t got a clue why he has come out and said this.

“Maybe the story was going to come out and he thought he’d be better off making a statement first.

“Whichever way you look at it, though, these events cannot do anything but undermine manager Rafael Benitez.

“His position is not untenable, but for one of the owners to come out and publicly say he had talks with the man who was heavily linked with Benitez’s job - well, it puts even more pressure on the Spaniard.

“Insurance policy or whatever Hicks wants to call it, the fact is he met Klinsmann and offered him the job if Benitez went, which is remarkable.”

Another former Liverpool defender, Mark Lawrenson, was also unimpressed with the latest revelation and was concerned about its effects on Benitez, whom he would not blame if he looked for a different job.

Said Lawrenson: “It is a strange thing to do. You could have spoken to Klinsmann through a third party and said, ’If this happens, would you be interested?’ – that is all you need to say.

“It is not dissimilar to what happened to Martin Jol at Tottenham. If you’re saying, ’We’ve looked around to try to find someone to replace you just in case’, he might just think, ’I’ll look for a little something I can go into just in case’.”

Lawrenson also feels the club is not being well run by its American owners.

He added: “I think all the things that were promised when they took over seemed fantastic but now there are all sorts of problems.

“The plans for the stadium were revised. Revised to what?”

Lawrenson expects a strong reaction from the club’s fans, who largely back Benitez.

He said: “They would say cheerio to the Americans and welcome in the guys from Dubai.

“Although they are not playing well the majority of fans are behind Benitez. They know how difficult it is to find a good manager, as you can see with the farce at Newcastle.”

JANUARY 14
Alan Hansen's view

By Alan Hansen - BBC Sport football expert

Liverpool co-owner Tom Hicks's admission that he spoke to Jurgen Klinsmann about becoming the team manager is
an amazing story.

I haven't got a clue why he has come out and said this; maybe the story was going to come out and he thought he'd be better off making a statement first.

Could Rafa Benitez be about to say goodbye to the Liverpool fans?

Whichever way you look at it though, these events cannot do anything but undermine manager Rafael Benitez.

His position is not untenable, but for one of the owners to come out and publicly say he had talks with the man who was heavily linked with Benitez's job - well, it puts even more pressure on the Spaniard.

Benitez is saying nothing, which I think is the most sensible thing to do. But if there is tension between him and the owners, this is only going to heighten it.

I think that is the biggest thing for me. If it adds to that tension then that will eventually start to affect the team on the pitch, that's an absolute certainty.

Players aren't really interested in new stadiums and things like that, it doesn't affect them. But when something affects the manager who is picking the team and influencing their careers, you can bet it will start to have an impact on them.

Liverpool are obviously struggling at the minute.

They have had four draws on the trot, they are 12 points adrift of Manchester United and Arsenal in the Premier League, and I think this is the last thing they need.

It has definitely come at a bad time. There's never a great time for stories like this to come out, but it's far better if you are flying. They are off the pace and it will be interesting to see how this one pans out.

Insurance policy or whatever Hicks wants to call it - and we have to take him at his word because he is apparently a man of great integrity - the fact is he met Klinsmann and offered him the job if Benitez went, which is remarkable.

I think that in the Premier League, every manager apart from Sir Alex Ferguson and Arsene Wenger are two games away from the sack, so things might not have changed much from that point of view.

JANUARY 14
Liverpool held talks with Klinsmann

Channel 4

Liverpool's co-owner Tom Hicks has admitted the club spoke to Jurgen Klinsmann about the possibility of replacing
Rafael Benitez.

Klinsmann recently agreed to take charge at Bayern Munich but Hicks has revealed he spoke to the former Tottenham striker last year at a time when Benitez was linked with other clubs.

Hicks said: "We attempted to negotiate an option, as an insurance policy, to have him become manager if Rafa left for Real Madrid or other clubs that were rumoured in the UK press.

"Or in case our communication spiralled out of control for some reason."

Benitez appeared to be at odds with Hicks and fellow co-owner George Gillett last year when he was told discussions about January transfer plans would be delayed until late December.

It appeared the air was cleared when Benitez, Hicks and Gillett finally met days after Liverpool had secured a place in the Champions League knockout stages, but the revelation about Klinsmann will increase speculation that Benitez could still leave.

JANUARY 13
Arabs eye £500m Liverpool buy-out

By Duncan Castles and Richard Wachman - The Observer

Liverpool FC could change hands for the second time in a year as their American owners encounter difficulties in refinancing £350million of debt incurred in taking over and running the club.

Beset by the steeply rising costs of a new stadium and manager Rafa Benitez's demands for new players, Tom Hicks and George Gillett Jr have been attempting to transfer the debt, for which they are personally liable, on to the club itself. City sources believe this is an extremely difficult task to complete before the loan's due date at the end of February.

It is possible that the Americans will meet the deadline, but if not an Arab investment group, Dubai International Capital, is understood to be close to lodging an offer to buy out the American pair, probably for about £500m. Takeover discussions are thought to be due before the end of this month.

If successful, DIC, led by Liverpool supporter Sameer Al Ansari, would invest heavily in two areas: the new stadium that Liverpool need if they are to compete with Arsenal and Manchester United for matchday revenue, and an improved playing squad. Were they also to acquire a new management team Jose Mourinho, who is known to be interested in managing Liverpool, would be a prime candidate.

DIC were extremely close to buying Liverpool last February, only to lose out to Hicks and Gillett when the club's chief executive, Rick Parry, switched his support from the Arab camp to the American. The latter paid £174.1m for a 100 per cent shareholding, also agreeing to take on the club's then debt of £44.8m.

The purchase, however, was funded solely with borrowed money, Hicks and Gillett's loan from the Royal Bank of Scotland swelling to £350m as it was used to fund several high-profile summer transfers, development work and architect's plans for a 60,000-seat stadium in Stanley Park, and to roll up the interest on the debt.

The RBS loan is due for repayment next month. The Observer understands that attempts to restructure it have so far failed and the Americans have yet to inject new equity into the refinancing.

While RBS have asked Hicks and Gillett to each commit £20m of their own cash to the deal, City sources believe that at least one of the pair is not prepared to do so. Hicks and Gillett declined to comment last night.

Meanwhile, work on 'New Anfield' has been held up by the impasse over the acquisition loan, with no chance of funding being put in place for the £400m stadium project until the issue is resolved.

A meeting in New York last week at which architects HKS and AFL presented competing stadium designs, was described by Parry merely as 'another big step forward to finding the best possible solution. Everyone is reflecting on what they have heard and a clear decision will be taken soon'.

The global credit crunch has made it harder for Hicks and Gillett to raise new revenues elsewhere and also affected the value of their other assets. Should they fail in their efforts to repay the £350m acquisition debt on Liverpool when it comes due in just over six weeks, there would be the possibility of the next owner of the club becoming RBS.

The bank, however, are extremelyunlikely to allow the situation to develop that way. Nor are Parry and club honorary life-president David Moores, the former principal shareholder. Parry and Moores are horrified that the Hicks-Gillett deal has not thus far brought long-term financial stability to the club.

As a consequence, there are increasing tensions between the Americans and other board members as the refinancing deadline approaches. Parry and Moores are understood to be open to a second takeover.

Sources in the Middle East have confirmed that DIC remain as keenly interested in buying Liverpool as they were one year ago. DIC last night refused to comment on the matter, but they appear best placed to resolve the financial problems affecting the club's competitiveness in the Premier League.

A mooted valuation of £1billion has been ridiculed, but an enterprise value of around half that figure might prove acceptable, allowing the Americans to exit with a profit of £75m each.

Thor Zakariassen ©