SEPTEMBER 29
Liverpool FC's American owners
may have just 17 days left at Anfield

Liverpool Echo

Liverpool FC’s American co-owners may have just 17 days left in control at Anfield.

The deadline for repaying their £237m debt, the majority of which is held by Royal Bank of Scotland (RBS), expires next month.

October 6 has long been the deadline day in many fans’ diaries for Tom Hicks and George Gillett to repay their debts. But the ECHO understands that Friday, October 15 is the earliest date the Americans debt will be called in by chief creditor, RBS.

And even that provisional deadline is likely to slip a further seven days as the bank seeks to facilitate an orderly transition of power at the club.

It is understood that the bank would rather that the club is sold to a new owner by October 15.

But given the over-optimistic £600m-plus valuations that Hicks, in particular, has placed on the club it remains likely that a sale will not be complete by that deadline.

Potential bidders will not pay over the odds and are waiting to snap up the club for the cheapest possible price.Talks with two serious prospective bidders are thought to be at a relatively advanced stage, although formal offers are a way off. Chairman Martin Broughton, managing director Christian Purslow, and commercial director Ian Ayre are understood to be keen to not just accept the highest bid.

Instead the trio, who have a majority on the board, want to secure investment in the playing squad and a new stadium as well as paying off the club’s debts.

It has been suggested the lower of two rival bids may be more attractive to the Liverpool board, if it was considered that it would put the club on a firm footing for the future.

Ultimately the bank could force the holding company which owns LFC into administration and seek to sell the club itself, but this is seen as a last resort.

The prospect of getting little or no profit from the sale of the club has led to Hicks carrying out a worldwide trawl in a bid to refinance the debt.

It is feared the creation of an investment company Hicks Acquisition II is part of his plan to retain control.

Papers registered with the USA’s Securities and Exchange Commission, show Hicks Acquisition II is seeking to raise $230m (£145m).

Shares are being offered for $10 in the "newly organised blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganisation or similar business combination with one or more businesses."

The initial public offering papers also warn prospective investors that "investing in our securities involves a high degree of risk".

The company is registered at the same address as Hick’s Holdings – from where Hicks conducts his business affairs.

The underwriters for the deal are Citi Bank and Deutsche Bank Securities, with the company expected to start trading on Thursday, October 7.

Meanwhile, details of a protest march before the Liverpool home game against Blackpool were unveiled by Reds fans union Sprit of Shankly (SOS).

The gathering will leave from the supporters club on Walton Breck Road at 1.45pm and proceed to the stadium where a demonstration is likely to take place.

Judging by previous turn-outs, thousands could join the throng campaigning against Hicks and Gillett.Today, SOS said they had set their own deadline of October 31 for the RBS to engage them on the subject of supporter ownership in the club.

Spokesman James McKenna said: "At the moment, the bank seem to be pushing us away, but we want solutions to this mess and that involves us.

"It’s the Liverpool fans who will inevitably end up paying off the debt. "Our preferred scenario is that RBS will say no to a refinancing deal, but listen to our proposals for supporter involvement in the club."

SEPTEMBER 24
Hodgson: Club must
live with protests

TEAMtalk

A sit-in fans protest against Tom Hicks and George Gillett is just something else for the club to deal with, according to manager Roy Hodgson.

With the Americans' loan from the Royal Bank of Scotland due for refinancing or repayment next month and no sign of an imminent sale supporters are stepping up their campaign to oust the unpopular pair.

The latest plan is to get the crowd at tomorrow's game against Sunderland to remain behind to demonstrate peacefully after the final whistle

"I, like anyone at Liverpool Football Club, would be very happy if the ownership situation got clarified, and in particular if we got a very good owner that can help us move forward," said Hodgson.

"It (the protest) doesn't help but is something I've had to live with since I came to the club.

"It is a major issue for a group of people who are very much anti the owners and the current people who are trying to solve the situation.

"It is often the case that when things are conspiring against you there is always an extra thing to come in and make it that little bit worse.

"It tests our mettle, our desire and strength. I am very confident the strength of this club, the strength of the playing staff and the people around me is more than enough for the club to come through this period.

"But while you are in that period it is unpleasant."

A statement from the Liverpool Supporters' Union and Spirit of Shankly group said: "We have given time to those in charge and listened to more empty promises.

"Now we are demanding results, and action will continue for as long as the situation remains unacceptable to us as fans of Liverpool Football Club"

SEPTEMBER 22
Purslow dismisses
administration fears

The Irish Times

Liverpool managing director Christian Purslow has dismissed fears the club will go bust should the current ownership issues not be successfully resolved and has warned Tom Hicks the board will not allow him to use Liverpool's assets as security in any refinancing deal.

Hicks is trying to put together a package to restructure his loans and buy out fellow co-owner George Gillett. The two Americans owe €280 million plus additional huge penalty fees to the Royal Bank of Scotland (RBS) and the loan is up for repayment or renegotiation in mid-October.

Concern has been expressed that should he fail then there is an outside chance the bank could take over the club and it could ultimately end up in administration, but Purslow has stressed this is not the case and says a sale would make the club the "most profitable" in the league.

"Liverpool Football Club is not going bust. We have an extremely healthy business with record revenues and we are highly profitable," he said. "We have cash, we are solvent, we have banking facilities which last beyond the end of next season and we are heavily scrutinised by the Premier League.

"To achieve our Uefa licence we went through that process and they were very happy with what they saw - so I cannot conceive of a situation where Liverpool Football Club could go into administration.

"The issue today is that too much of our profit is being used to service loans put into place when the club was bought.

"We are dealing with that issue. When we sell the business that debt will be reduced or go away, which will make us the most profitable club in the Premier League."

Hicks has already had one refinancing project vetoed by the club's board, when Purslow, chairman Martin Broughton and commercial director Ian Ayre out-voted the two Americans. When the Texan entered into discussions with investment group Blackstone last week the rest of the board began exploring the possibility of a legal challenge.

Blackstone ruled themselves out of the proposal on Monday and Purslow stressed no new refinancing would be allowed which aimed to utilise assets like Anfield, the club's Melwood training ground or even players.

"That would require board approval and the other members of the board have made it clear that's not what we want to see happen. [It is] very unlikely," he told LFC TV. "Any incurrence of indebtedness by Liverpool Football Club needs full board approval.

"The non-owner directors have made it clear that's not what we want to see happen."

SEPTEMBER 20
Blackstone walk away
from Hicks refinancing

Anfield Online

Tom Hicks latest attempt to refinance Liverpool’s enormous debt in return for an equity share in the club has been sunk following a weekend of Liverpool FC fans campaigning.

According to The Guardian, GSO Capital Partners (a subsidiary of Blackstone Investments) have walked away from discussions with Tom Hicks.

Tom Hicks requires the loan with the Royal Bank of Scotland to be paid off by next month if he is to stay in control of the club. The Royal Bank of Scotland has consistently extended deadlines for the sale of the Anfield club, but with no willing investors at the price Hicks’ wants, and with ballooning debt – the RBS debt is now in danger of turning toxic for the taxpayer-owned bank.

Tom Hicks and George Gillett paid £170M for Liverpool FC in January 2007 plus another £40M for Liverpool’s debt at that time.

Estimates now place the reds as being in more than £400M of debt, with £270M owed to RBS and almost £150M owed to Hicks and Gillett’s private Cayman Island based investment funds, which has been used to perform debt swaps at every renegotiation with the bank.

Fans groups have issued warnings that any financial institution that refinances Tom Hicks and George Gillett will face a PR backlash, and the owners finances will become a target of a widespread boycott.

SEPTEMBER 17
Liverpool's board will attempt
to block Tom Hicks' attempts
to stay in control at Anfield

By Paul Kelso and Rory Smith - Telegraph co.uk

Liverpool’s board is expected to attempt to block Tom Hicks’ efforts to remain in control at Anfield, but could be powerless to do so if the Texan refinances the club’s debt with Royal Bank of Scotland.

The board’s anticipated opposition to any proposal that involves continued debt and the involvement of the American owners signals that the club are effectively in a state of civil war.

As disclosed by Telegraph Sport, Hicks met Liverpool chairman Martin Broughton on Wednesday and told him that he was attempting to raise finance to buy out RBS, whose credit line to Hicks and co-owner George Gillett is understood to expire this month.

Hicks' bid to hang on at Anfield Sources said Hicks is understood to have been in talks with GSO Capital, a division of private equity giant Blackstone run by Bennett Goodman, about forming a consortium to buy out RBS.

Hicks’ move comes with Gillett attempting to retain control of his 50 per cent stake in the club after a $75 million (£48 million) loan secured against it was called in by lender Mill Financial.

Gillett is understood to maintain that he remains a controlling partner in the club and is supportive of Hicks’ refinancing efforts, but there are suggestions that any default by Gillett would leave Hicks in sole control of Liverpool’s Delaware-based holding company.

Any proposal that would mean Hicks remained in control using further debt would be resisted by Broughton and directors Ian Ayre and Christian Purslow. They blocked a refinancing attempt in June but if RBS is removed from the picture, their powers may be limited.

The board had to take independent legal advice in the summer before it opposed the owners, but it would have to have solid grounds for opposing the will of the shareholders.

Hicks and Gillett owe RBS at least £237 million, and Broughton has been engaged in a search for a buyer to remove them from the club. Thus far he has failed to find a credible bidder able to repay the debt, satisfy the Americans’ price expectations and put money into stadium investment and transfer fees.

Meanwhile Kenny Dalglish says he has a “debt to repay” to Liverpool. He may have helped the club to nine league titles, three FA Cups and three European Cups, but he clearly feels his bill is still not settled.

“I feel a wee bit guilty leaving the way I did [in 1991],” said Dalglish, speaking at the launch of his autobiography, My Liverpool Home. “I feel I have got a debt to repay. If I can help the club, then I will do it. I think I am a wee bit in arrears when it comes to balancing out the help. They have helped me more than I have helped them. If I can repay that debt, then I would be prepared to do [anything].”

It is no secret that Dalglish, after the departure of Rafael Benítez, felt that reprising the role as manager he vacated almost 20 years ago offered him the best opportunity to help a club to whom he still feels helplessly devoted.

He remains staunch in his support for Roy Hodgson, the man appointed in his stead, but it is a measure of how far Liverpool have fallen, how criminally his gilded legacy has been squandered, that he feels Hodgson’s decision to take what Dalglish left as the most coveted post in English football is of “great credit” to the former Fulham manager.

“I do not think anyone would have been under any illusions about the difficulties this job would have entailed after Rafa,” said the Scot.

“You know what is going on here and it is a great credit to Roy that he left Fulham to come here. It is pretty daunting. Manchester United have been fantastic, Chelsea are really strong, and Manchester City have their financial backing.”

It is the former who concern Liverpool fans, as well as Hodgson, most this weekend. “This game transcends the north-western rivalry,” said the Liverpool manager. “This is a huge game on a global scale. I relished the huge games at Inter Milan and this is the same level.

“It compares with the Derby D’Italia, Inter against Juventus, more than the Milan derby. That was the killer one, the one that grabbed the imagination.

"I am hoping I will have a better record than I did in those games, though. I did not like losing, which we did quite often, and like this rivalry this weekend, they are not games that you want to lose. Ever.”

SEPTEMBER 16
Tom Hicks in new talks in bid
to keep control at Liverpool

By Andy Hunter - guardian.co.uk

Tom Hicks has launched a last-ditch attempt to retain control of Liverpool by looking to secure another refinancing deal against the club during talks with bankers in London.

Hicks and fellow Liverpool co-owner, George Gillett, face losing the club to the Royal Bank of Scotland next month when the deadline for refinancing loans of at least £237.4m – according to club accounts to July 2009 – expire.

But despite fierce opposition from the majority of the Anfield board to any further attempts at refinancing by the Americans, believed to owe approximately £280m under the terms of their arrangement with the bank in April, the Texan businessman has not given up hope of extending his controversial reign.

Hicks has discussed refinancing options with, among others, the investment bank FBI Capital Markets.

Liverpool would face further damaging interest repayments should Hicks succeed in preventing the RBS from taking control and selling the club on for much less than the Americans' original £800m valuation.

However, Hicks would require majority approval from the Liverpool board to secure a deal and, so far, the chairman Martin Broughton, managing director Christian Purslow and commercial director Ian Ayre have opposed his attempts to remain at the helm.

It is understood Hicks is operating alone on this latest refinancing package, with Gillett struggling to repay a previous loan taken out against Liverpool. Broughton has yet to find a buyer for the club five months after his appointment as chairman with that specific brief.

SEPTEMBER 9
RBS move Reds' debt to toxic list

By Darren Phillips - Shankly Gates

Royal Bank of Scotland have switched the debt used to acquire Liverpool Football Club to its restructuring team. Many observers believe is a clear indication that George Gillett and Tom Hicks will not find it easy to restructure their finances and retain ownership of the Reds.

Their hopes of engineering another deal may well now be impossible as the debt is effectively considered a toxic one.

The extended £237 million loan facility inituially granted in February 2007 is set to expire on 6 October 2010.

If the bank does not take direct control of the club it perhaps suggests they will play a huge part in finding a buyer. Effectively becoming a sixth board member.

The American duo have been accruing fees for Payment in Kind (PIK) loans of £2.5 million for every week which has passed since the beginning of the UK financial year on 6 April.

A charge which they are personally liable for rather than the club.

Experienced football financier Stephen Schechter, chief executive of London based Schechter & Co., warned: "The roulette wheel stops spinning on October 6."

He added: "If you were a prospective buyer, I would call RBS and say I’m interested in buying your loan.

"I would notify Gillett and Hicks that I’m the new lender and there will be no extensions, renewal or modifications of the loan: It is due and payable in full on October 6.

"What that does is stop the game."

AUGUST 24
Liverpool poised for new bidder

The Irish Times

Renowned deal-broker Keith Harris claims an overseas buyer is considering making an offer of between €488 million and €610 million for Liverpool. The former Football League chairman, who has had a hand in the sales of Aston Villa, West Ham and Manchester City in the past, said due diligence has already been done.

Harris also said the party he was representing was not one mentioned publicly before.

"The overseas buyer we represent has completed due diligence. A huge amount of work has been done," he said. "It is none of the groups mentioned in the press. The ball is now in our client's court to make an offer.

"I do not think the deal will be done before the transfer window closes this month but the next pressure point is October when some of the RBS loan of £237 million has to be repaid.

"It may happen then. But in the present climate these things are impossible to predict."

Last week Hong Kong-based businessman Kenny Huang - whose interest was believed to be allied to the Chinese government - pulled out of the bidding process, while Syrian-Canadian Yahya Kirdi's much-publicised interest has been treated with scepticism.

Harris said history has taught him that those who went public before an agreement had been reached rarely succeeded.

"The Chinese government involvement was always a bit far-fetched," he told the London Evening Standard. "In any takeover situation, when people resort to announcing it to the media, you have to question the seriousness of the offer.

"If the name of the prospective buyer comes out before the deal is done then probably it is never going to be done.

"Look at when Chelsea was sold in 2003. My firm was advising the club and we only knew of Roman Abramovich on the Thursday before the deal was completed the following Tuesday."

Harris worked on a bid for Liverpool two years ago for Kuwaiti Nasser Al Khorafi, whom it is claimed agreed a deal for €366 million up front and another €122 million based on financial performance only to pull out at the last minute.

"He just lost his appetite. No explanation was forthcoming," added Harris.

AUGUST 21
Time for Broughton
to break his silence

Comment by Jim Boardman - Anfield Road.com

Ever since it became obvious to supporters that Liverpool Football Club was “in the wrong hands” the arguments have raged about exactly whose fault it was.

Today, the club is still in the wrong hands. Today, the arguments rage about what kind of owner Kenny Huang might have been. Today, we’re talking in the past tense when discussing the man said to be fronting a bid that had the backing of China’s sovereign wealth fund. Huang pulled out of the sales process last night, clearly frustrated at the way he’d been treated.

This club has been at war with itself for three years. This war means all trust has gone. Not only will any potential bidder be instantly met with suspicion but also at times will anyone seen to have put their trust in that potential bidder.

And so with Huang’s withdrawal we’re all arguing about whether he left the process because he was badly treated or if it was because he never had a serious hope of taking over to start with. We’re arguing about whether he was right to expect Broughton to hurry the process along or if his impatience suggests he was never going to be a good owner.

And as we argued amongst ourselves our club’s owners no doubt raised a glass to each other over the phone, celebrating the fact that if a bidder pulls out it no longer matters how viable their proposal was. The risk he might have a viable bid – probably not to their liking but acceptable to the board – would have been causing them a great deal of panic.

It doesn’t matter to them if he was at the table to start with or not – just as long as he’s not at the table any more. Did anyone else on the board raise a glass at the news he’d withdrawn?

We’re being asked to trust a board that on the whole has done little to earn our trust.

We still aren’t certain how Martin Broughton or Christian Purslow came to be on the club’s board in the first place. We’re told they’re here for the good of the club, not the owners. For various reasons we are, of course, suspicious about that.

We temporarily put our suspicions to one side and suspended our doubts to give them time to get the sales process moving and new owners in place. We put our trust in them.

In return we continue to be treated like our views don’t count. We are constantly reminded that we’re not supporters, we’re customers. We’re not just customers, we’re loyal customers. Mugs even. No matter how hard they knock us down we keep getting back up and taking more.

Is our definition of what’s “best for the club” the same as theirs?

If it was they’d try harder to keep us informed, to ease our fears, to reassure us that they are striving to bring us what’s best for the club.

Ian Ayre said in an interview published by the Daily Post this week that “it’s our website which is the most important tool for the club outside the team itself”.

So why don’t the board use it more often?

If the board are happy that they have acted correctly in their dealings with Kenny Huang then why not tell us? If he’s not a credible bidder, if he’s not proved he has the backing, if he’s a long way short of being the “best” bidder and if his withdrawal was nothing for us to worry about then why not tell us? Why not pop into the club’s own TV studio to record a short interview telling us we don’t need to worry?

The bidding deadline has passed so what harm would it do to go on the record (instead of leaking it off the record) to tell us how many viable bids there are on the table? Is it because there aren’t any viable bids on the table? And were there any on the table yesterday morning?

The club deemed fit to release a statement a week ago. Christian Purslow was happy to go onto the radio to speak to a sympathetic journalist on Sunday. All week we’ve seen suggestions that senior officials at the club are briefing the media – off the record of course.

We know that if Kenny Huang’s offer was only as high as £400m that the owners would do all in their powers to block it. We know that it only takes one of the English members of the board to help them block it.

Last night’s statement from Huang and the lack of any word from the club has reminded many of us of the circumstances in which Martin Broughton arrived at the club.

There were claims that he had been brought in at the request of Hicks and Gillett through an old Hicks associate, Michael Klein. One report said at the time: “Klein goes back a long way with the Liverpool co-owner Tom Hicks and is believed to have been instrumental in persuading RBS not to pull the plug on the club.” Another report claimed that Klein had “helped to secure Broughton’s services by approaching him on behalf of Tom Hicks and George Gillett, Liverpool’s owners.”

And these reminders mean that our focus shifts away from how credible Kenny Huang’s bid might have been to questions about how credible the majority of the club’s board actually is.

Huang may well be out of this game – but Broughton isn’t. And it’s time he explained what’s really going on. Time he explained where his priorities and loyalties lie. Time he looked down from that seat in the director’s box and proved he was he man who could get us out of the wrong hands.

AUGUST 20
Huang ends Reds interest

Sky Sports

The uncertainty surrounding the future ownership of Liverpool has continued after Hong Kong businessman Kenny Huang and QSL Sports pulled out of the race to buy the Premier League club.

Huang was the first party to openly declare an interest in buying the Merseysiders from American duo Tom Hicks and George Gillett, while Syrian Yahya Kirdi has also been in the running.

But on Friday evening Huang, who earlier in the summer refused to comment when it was claimed that his bid was backed by the Chinese government, confirmed that he and his group of investors were no longer interested in a takeover at Anfield.

The statement, which presented no reason for Huang's decision to pull out of negotiations, read: "Over the past few months we learned first-hand that Liverpool has a very special place in the hearts of millions of fans around the world.

"We concluded that a plan that properly capitalises the business and provides funds for a new stadium and player-related costs would allow Liverpool FC to provide its great fans with the success they deserve.

"Our strategy and unique ability to expand the fanbase in Asia would also have been of benefit to all.

"We regret that we will not have the opportunity to implement this strategy.

"We thank the many Liverpool fans who expressed support for our efforts and wish the club great success in the years to come.

"I am now considering my future options and will be making no further comment at this time."

It was reported earlier this week that Huang was growing impatient with the Anfield board, who are carrying out due diligence on a number of bids received.

Huang's bid to buy Liverpool from its American owners is thought to have valued the club at around £325million.

AUGUST 19
Kenyon on-board Huang bid

By Darren Phillips - Shankly Gates

Former Manchester United and Chelsea executive Peter Kenyon is assisting Kenny Huang in his hopes to purchase Liverpool Football Club.

The former Wall Street broker who is backed by Chinese sovereign wealth funds has received advice from the 56-year-old via his QSL Sports company over several months.

Kenyon left Stamford Bridge almost a year ago and became a director at the Creative Artists Agency. He has talked to both BARCAP who are tasked with helping the sale for George Gillett and Tom Hicks plus club chairman Martin Broughton.

There is no prospect of Kenyon taking any role at Anfield should the Huang bid be successful.

Hunag's PR company and Liverpool FC are refusing to comment on the involvement by one of the game's most successful adminstrators of recent years.

AUGUST 18
Huang's take it or leave it offer

By Darren Phillips - Shankly Gates

Kenny Huang is ready to call time on his bid to mount a takeover for Liverpool Football Club.

The Times reports he has issued a "take or leave it" offer to Martin Broughton.

Amongst Huang's concerns is a perceived effort to push up a selling price by talking up weaker bids, and, a fear that the Reds may miss out on a Champions League place unless Roy Hodgson is given funds prior to the summer transfer window closing.

Liverpool have spent a little over £8 million this summer and though players have been bought in for free others have been allowed to depart Anfield as financial constraints continue to bite.

More exits are likely before the end of August.

Huang's consortium is adamant they have met all the requirements set by the Liverpool board and do no understand the reason for the sale process to be prolonged.

If no buyer is found by early October the Royal Bank of Scotland may be forned to take control of the club.

AUGUST 15
Purslow frustrated
with public bids

By Adam Bryant - LFC Online

Managing director Christian Purslow has commented on the potential sale of Liverpool Football Club.

"It is a source of great frustration and mystification that so many people who may or may not be interested in buying Liverpool prefer to tell newspapers rather than the board of the club," said Purslow in a radio interview on Sunday morning.

"But we do have a number of bids for the club and the board is going to take its time to examine those extremely carefully.

"Our priority is to make sure what we'll be getting into with any new owner - to know who they are, where the money is coming from, what their plans are and to establish that there is a real commitment for a very long-term stable and secure financial position for the club.

"Second to that priority, and its a very close second, is to sell the club as soon as possible and we have a process underway. We have just received some written bids and it would be wrong to categorise anybody as a frontrunner."

AUGUST 12
Huang gives bid assessment

By Darren Phillips - Shankly Gates

Kenny Huang has given an assessment of the chance he has to gain control of the club and outlined the probable timescale involved.

His bets are hedged at "about 50%" with October as the most likely point by which he expects to have ousted George Gillett and Tom Hicks.

As revealed earlier this morning a club board meeting set for Thursday was cancelled after bids invited by chairman Martin Broughton failed to materialise.

That meeting may well take place very soon and Huang insists his group's interest is known and taken seriously.

Speaking to Chinese based news agency Sohu Sports in something of a rare interview he said: "Liverpool’s board have given us a positive response."

However, the businessman was wary adding: "Our competitors are very strong and we are not far ahead, and the board has not confirmed that they will accept us.

"At the same time, we have continued our work - researching and evaluating, the overall progress is good. However, there are quite a number of strong competitors. So there are still a lot of unknowns.

"We have put forward many proposals and we have the answer: the board has accepted our proposal and wish us to continue the process. We have a reply in less than 10 days.

"There is still some way to go. It was that we asked the board to let us know whether our proposal would be overall acceptable and the board has said yes."

AUGUST 11
Liverpool postpone meeting
to discuss takeover with
no serious bids on the table

By Paul Kelso, Chief Sports Reporter - Telegraph.co.uk

A Liverpool board meeting scheduled for Thursday to discuss offers for the club has been postponed, providing further evidence of the complications and uncertainty surrounding the club’s future.

The Daily Telegraph can disclose that the decision to postpone was taken amid continuing doubts about the credibility of potential bidders and after the date had been publicised in the media.

A well-placed source said it would have been “premature” to meet this week, indicating that the club were yet to receive any formal offers backed by proof of funds.

Sources said the board would not meet this week and it is unclear when the five-man group – chairman Martin Broughton, owners Tom Hicks and George Gillett, managing director Christian Purslow and commercial director Ian Ayre – will now convene.

The delay raises doubts about the club’s prospects of changing hands this month, or even before the Oct 6 refinancing deadline set by Royal Bank of Scotland.

Broughton had asked as many as six potential buyers to table detailed offers, including proof of funds, by the end of this week, in the hope that two might be worth serious consideration. That deadline now looks ambitious.

For supporters desperate for clarity amid the claims and counter-claims of the last fortnight the postponement is not a positive sign.

Broughton might still emerge from the fog of speculation clutching a piece of paper securing the future of Liverpool FC in the near future, but this does not make it feel any more imminent.

At least five potential buyers are thought to have expressed an interest.

Chinese-American businessman Kenneth Huang and Syrian Yahya Kurdi have both said they are considering an offer for the club, while the Kuwaiti Al-Kharafi family and New York investors the Rhone Group are also thought to have expressed an interest.

Indian conglomerate Sahara said this week it would not bid “for the time being”, but did not rule it out.

Until any of them table offers with proof of funds, Broughton’s hopes of securing a deal before the end of the transfer window will be dashed.

The timing is significant. The deadline for formal offers falls on Friday and marks the end of the two-week window after which Huang indicated he would walk away if his offer was not accepted.

It is also just over a fortnight from the closure of the transfer window, the last opportunity for Roy Hodgson to enhance his squad.

It appears likely now that the window will close without a formal change in Liverpool’s ownership, leaving the far more significant deadline set by RBS looking like the decisive factor in regards to the fate of the club.

The bank agreed to extend its £237 million loan facility in April only after Hicks and Gillett agreed to sell and to appoint Broughton to oversee the process.

RBS is also understood to have imposed more expensive terms on the Americans, with £110 million of their debt reportedly converted to payment-in-kind loans accruing interest of up to £2.5 million a week.

This gives RBS by far the greatest leverage of any of the players in the Anfield saga, though whether the bank will choose to use it remains to be seen.

RBS is reported to have offered to “ease” the financing for any bidder, a move that emphasises the sensitivity of its position.

If October arrives with no acceptable offer RBS could extend its financing to the Americans again, or take a more drastic step and force out Hicks and Gillett and effectively take control of the club.

That would be a hugely controversial step for the publicly-owned bank to take and would require the endorsement of senior management including chief executive Stephen Hester.

Removing the Americans might be popular on Merseyside and would certainly simplify the process, but it would not be without implications for the bank’s reputation.

For potential bidders RBS’s situation offers an opportunity. Letting the clock tick down will increase the bank’s anxiety, the fees paid by Hicks and Gillett and drive the price down .

Sahara’s statement this week suggests that may be its strategy.

Kurdi, understood to be backed by investors from Sharjah and considered a serious bidder by the Americans, who are seeking a profit from their time in charge at Anfield, indicated he would do likewise.

“I want at least two months, two months to see everything. After that if everything is OK it’s a deal. If not, 'Thank you very much’,” he told Bloomberg this week.

The Huang bid told The Daily Telegraph on Wednesday that it had still not decided whether to make an offer.

Marc Ganis, a US associate of Huang’s, said via email: “We haven’t yet decided to submit a formal proposal but are interested in looking at an investment there. I suspect that is obvious. We also have not identified the potential investors.”

Ganis’s statement is a far more sober assessment than the suggestions of a swift Chinese government-backed takeover emanating from Huang’s camp last week.

Huang, a sports business investor who cites top-level contacts in China and the US, has made no comment himself since news of his intentions emerged last week.

There has been confusion over the source of his funding and the exact make-up of his team.

His background has come under scrutiny too, though not via his company website, which has displayed the message 'Site Under Maintenance’ since his involvement.

Huang received an endorsement on Wednesday when Randy Levine, president of the New York Yankees, told the New York Times he had arranged marketing tie-ups in China.

Huang would hope to forge similar links for Liverpool, but first, like everyone else circling the club, he will have to convince Broughton he has the finances to pay for it.

If he and the other interested parties cannot, RBS may have to decide the club’s future in the autumn.

LFC TIMELINE

April 16 2010
Martin Broughton appointed Liverpool chairman as Tom Hicks and George Gillett agree to sell the club under pressure from Royal Bank of Scotland. Investment bank Barclays Capital (BarCap) appointed to find a buyer.

July 31 2010
Deadline for expressions of interest from potential buyers closes with as many as six potential bidders.

Aug 13, 2010
Deadline for formal offers with proof-of-funds to be given to Broughton and BarCap.

Aug 31, 2010
Transfer window closes.

Oct 6, 2010
RBS financing of £237 million of debt borrowed against the club and its holding companies expires. If the club has not been sold the bank will have to offer another extension to the American owners or force them into default.

January 1 2011
Transfer window opens, perhaps providing the first opportunity for a new owner to strengthen Liverpool squad.

AUGUST 11
Cash-rich Sharjah ruling family
revealed to be behind Liverpool bid

By David Conn - The Guardian

One of the proposed bids to buy Liverpool Football Club is backed by members of the ruling family in Sharjah, the third largest of the United Arab Emirates, according to sources close to the negotiations.

A statement issued last week on behalf of the bid led by the Syrian businessman Yahya Kirdi said he represents "a select group of investors from the Middle East and Canada", who were in "advanced negotiations" to buy Liverpool from the current co-owners, Tom Hicks and George Gillett.

Those investors were not and have still not been named, nor presented officially to Martin Broughton, the Liverpool chairman conducting the sale of the club. However, it has now been claimed that the investors referred to include members of the al-Qasimi family, which has ruled Sharjah for centuries. While not the richest family among the UAE ruling elite, the al-Qasimis do have access to great wealth, in a kingdom rich in crude oil and natural gas.

Kirdi is said to have authority to represent members of the family in various business dealings, an arrangement not unusual in the Gulf, and he has been negotiating directly with Hicks and Gillett, for the investors to buy Liverpool, since October.

There has been no confirmation from Sharjah that any members of the ruling family are involved in the bid, nor has any formal proof that their money is behind Kirdi been presented to Broughton. Dan Diamond, the president of GameDay, a Canadian sports consultancy which is working with Kirdi to broker a deal, would also not comment on whether the proposed investors are in fact from Sharjah.

A source close to the deal did, however, say that the buyers have now agreed in principle the terms of a deal with Hicks and Gillett, which would see the investors take charge of the club, pay off Liverpool's £237m debts to Royal Bank of Scotland and Wachovia, and finance the building of the club's planned new stadium with a 15-year financing arrangement.

"Plans are in place to close the deal shortly," the source said. "A proof of funds will accompany the closing of the deal in a form requested by Martin Broughton, the club's board and the owners. Everyone is focused on getting this done so that the next era in the history of Liverpool can begin."

Diamond would not comment on the speculation that Kirdi, on behalf of the investors, has agreed to pay Hicks and Gillett around $600m (£380m) for their shares in the club. However, it seems clear that this deal will deliver more value to the owners, , rather than as little as possible, as suggested last week on behalf of the proposed bid led by the Chinese businessman Kenneth Huang.

Gillett and Hicks are believed to strongly favour the Kirdi-led proposal but, to date, neither proposed bid has presented formal terms, together with the identity of their investors and source of the money, to the Liverpool board, which meets tomorrow.

AUGUST 10
Possible LFC bidders - latest

By Darren Phillips - Shankly Gates

A possible suitor for Liverpool Football Club insists he would pay no more than the club's true market value.

Yahya Kirdi who is said to be heading a Canadian and Middle East backed bid for control has rejected claims he will offer a sum over the odds.

A sum close to the minimum value George Gillett and Tom Hicks have placed on the club - £600 million - has been suggested but the Syrian born entrprenuer who was linked to a bid during the spring is distancing himself from these reports.

He said: "I can’t pay one pound more than value of Liverpool. I’m not crazy."

Kirdi has publicly stated his negotiations are close to agreement and he wishes to finalise details before the new season kicks-off this coming weekend.

It is not believed he has spoken to the club's interim chairman Martin Broughton yet.

Kenny Huang is thought to remain the front runner in the process though a spokesman says that a bid has yet to be formally tabled.

There is also no comment being made on those behind Huang or a reported timescale of a deal being concluded.

There had been suggestions that agreements would have to be in place by the end of August.

Speaking about a possible offer Marc Ganis, president of SportsCorp a sports business consulting firm, commented: "No proposal has been made and no decision to offer a proposal has been made."

Regarding reported financial weight being added by the China Investment Corporation (CIC) he added: "There were many reports about CIC, yet at no time to [any] party, whether the media, Sir Martin [Broughton] or Barcap, have we ever identified that CIC was an investor.

"I made it clear there were no deadlines, meetings or discussions with players, their reps or managers, nor issue[s] with regard to the date the transfer window would close."

On Monday it emerged that representatives of the Far East consortium would be meeting with Spirit of Shankly and ShareLiverpoolFC (SoS-SL) should they be chosen as the preferred bidder.

A spokesman said of plans to meet the comibined SoS-SL grouping and others: "If developments with the club go forward positively, naturally we will be coming to Liverpool.

"If and when we do, we pledge to meet with SOS-SL, and other supporter representatives, such as the Official Supporters' Clubs, because we recognise that Liverpool supporters are key stakeholders in this club.

"We have an open mind about how things might move forward but we are very much prepared to meet for a detailed discussion, without prejudice. They are critical to our approach to the whole deal."

It is believed no other would-be purchasers have made the same pledge to date.

SoS-SL are committed to fan ownership in the short and long term future.

A spokesman told Click Liverpool: "It is significant that we’re hearing directly from representatives of the China bid and we cautiously welcome it.

"We have a very clearly defined agenda and would be happy to meet and discuss our aims in detail with them. Of course, we do not, and would not, endorse any particular bid without detailed discussions and negotiation.

"SOS-SL has over 50,000, members, registrants and supporters. In the event of new ownership at Liverpool FC, SOS-SL is committed to representing the best interests of supporters, and seeking a minority partnership by taking equity in the club.

"They expect to raise £50million+ from individual fans in a ‘one fan: one share’ issue but those numbers could surge dramatically as events move forward."

Meanwhile, Indian duo Subrata Roy, chairman of the Sahara Group, and fellow billionaire Mukesh Ambani have rejected claims they would reignite their hopes to own the Reds.

"The deal for acquisition of the Liverpool Football Club was in our consideration in the recent past," Abhijit Sarkar, head of corporate communications at Sahara, said.

"However, after considering all related factors, we have decided not to go ahead with it, at least for the time being.”

AUGUST 11

AUGUST 10
Liverpool sale plot thickens after
Kenny Huang lawsuit is revealed

By Paul Kelso - Telegraph.co.uk

Potential Liverpool owner Kenny Huang was successfully sued for nearly $800,000 (£505,000) in damages by a former business partner after their relationship went sour.

The adverse court finding emerged as Huang was preparing to present Liverpool chairman Martin Broughton with an offer for the club and proof of funds ahead of a board meeting on Thursday that may decide the fate of the club.

Huang’s bid has been clouded in uncertainty since it was made public amid claims that it would be backed by investment from the China Investment Corporation, the Chinese state’s sovereign wealth arm.

On Tuesday Huang’s associate on the bid, Marc Ganis, added to the confusion, telling sportingintelligence.com that they had not yet decided whether to make an offer for the club and that no investors, including CIC, had yet been identified.

Huang is one of four potential bidders for Liverpool. Also understood to be considering offers are Syrian businessman Yahya Kurdi, who said on Tuesday he would not offer “one pound more” than the club are worth, New York investment house the Rhone Group, and the Kuwaiti Al-Kharifi family.

The Liverpool board are scheduled to meet to discuss any offers they receive on Wednesday having asked for proof of funds and detailed offers by then.

None of the potential bidders has yet provided proof of funds, though they are all understood to have been subject to background checks by parties involved in the sales process.

The adverse judgment against Huang was handed down in January 1999 by a circuit judge in Seminole County, Florida, and relates to a dispute with a former business associate, Yudong Zhang, and a company, T&K Guang Xin Enterprises.

According to the judgment, a copy of which has been seen by Telegraph Sport, Huang, then a resident of Las Vegas, was ordered to pay damages of $750,000 (£473,000) and interest of $788,300 (£497,000).

On Tuesday night a spokesman for Huang confirmed that the court had found against him in the case but declined to discuss what the source of the dispute was or the nature of the business venture.

Neither could he confirm whether Huang was appealing against the judgment, but he said Huang disputed that the money was owed to his former associates.

Huang has also recently won a legal dispute arising from his involvement in an attempt by a Chinese-owned car company to establish itself in the United States.

Huang was faced with suits for tortious interference with a business relationship, fraud, defamation and a breach of fiduciary duty brought by AutoChina Ltd, but won them all and was awarded $300,000 (£189,000) in damages earlier this year.

According to transcripts of the hearings, held in Miami in March, one of those behind the allegations was David Herzig, who is listed as a co-director in one of Huang’s firms, Aspen Infrastructure.

US Court records list Huang as being involved in several other court proceedings in the last six years. Huang’s spokesman said on Tuesday evening that he had not been found against in any of them, and that there were no outstanding legal proceedings against him.

“Mr Huang’s focus is now on preparing QSL’s bid [for Liverpool] and he has briefed all of his advisers that he will be making no further comment at this point in time,” the spokesman said.

Earlier Ganis indicated that a bid was not certain. In an exchange with sportingintelligence.com, he said: “Among the most important points I have tried to get out is that no proposal [in relation to a Liverpool bid] has been made and no decision to offer a proposal has been made.

“There were many reports about CIC, yet at no time to [any] party, whether [to] the media, Sir Martin [Broughton] or Barcap, have we ever identified that CIC was an investor.”

Meanwhile Kirdi, whose apparently modest business background in Canada and apparent willingness to pay a premium for the club has raised doubts about his credentials, told Bloomberg that he would not over-pay for the club. “I can’t pay one pound more than value of Liverpool, I’m not crazy,” he said. Kirdi said he was backed by “big names” from the Middle East and Canada but declined to name them.

Five high-profile takeover attempts that ended up on the rocks

Michael Knighton, Manchester United, 1989
Few takeovers have been quite so high-profile. Knighton, after agreeing to buy United for £20 million, donned training kit and juggled a ball in front of the Stretford End before the 1990/91 season opener with Arsenal. Adverse publicity, though, persuaded his backers to pull out and the deal collapse.

Roman Abramovich, Tottenham, 2003
How different the Premier League might have looked had the Russian oil magnate acquired his first target. Instead, Daniel Levy brushed off super-agent Pini Zahavi’s inquiries as to how much Spurs may cost and Abramovich looked down the King’s Road.

Thaksin Shinawatra, Liverpool, 2004
The then-Thai Prime Minister saw a deal to buy a stake in Liverpool collapse six years ago amid a blaze of bad publicity, with fans waving placards urging then-owner David Moores to “say no to Thai blood money”. Shinawatra, mastermind behind an anti-drugs war which killed 2,600, had planned to use a public lottery to finance his offer.

DIC, Liverpool, 2007
The investment arm of Dubai’s ruling family seemed to have a deal to buy Liverpool sealed when Moores and Rick Parry, his chief executive, changed their minds and announced Tom Hicks and George Gillett as their preferred bidders. Dubai may have since imploded, but it still looks a poor choice.

Barry Moat, Newcastle, 2009
With unpopular owner Mike Ashley resigned to leaving, local businessman — and St James’s Park executive box holder — Barry Moat seemed to be ready to rescue Newcastle from their purgatory, even completing due diligence on the club’s books. A price and payment structure, though, could not be agreed, and Ashley pulled the club off the market.

AUGUST 9
Kirdi consortium close to deal

Sky Sports

Sky Sports News understands that the consortium fronted by Yahya Kirdi expects to have signed an initial takeover deal with Liverpool by Sunday afternoon.

It emerged last week that the group of investors from the Middle East was interested in buying out Reds co-owners George Gillett and Tom Hicks and now it is reported that an agreement has been reached.

The consortium hopes that a first contract, which will not complete the takeover, will be signed before Liverpool kick-off their Premier League campaign against Arsenal on Sunday at Anfield, a game which can be seen live on Sky Sports 1 & HD1.

All parties - including Kirdi's group, Gillett and Hicks, and the Premier League, which now has tougher rules regarding the fit and proper person test - are said to be ready to gather before the weekend.

Sky Sports News has also reported that the consortium has agreed to pay off all of Liverpool's debts to The Royal Bank of Scotland and Wells Fargo, and that funds will be supplied to complete the planned construction of a new stadium in Stanley Park.

Correct decision
There has also been clarification of Canada-based Kirdi's financial position, with the former Syria international said to be 'well off' and not a billionaire as has been reported in the past.

Earlier on Monday Indian conglomerate Sahara Group, one of the parties expressing an interest in buying Liverpool, cooled their interest, while Chinese tycoon Kenny Huang has also made enquiries.

Liverpool chairman Martin Broughton is overseeing the sale, being run by Barclays Capital, and is conscious of the need to make the correct decision when it comes to a change of ownership.

In July he stressed it was important to choose the most appropriate bid and not necessarily take the highest offer, at the same time confirming co-owners Hicks and Gillett could not block a sale to a particular party if it was deemed in the best interests of the club.

Broughton, managing director Christian Purslow and commercial director Ian Ayre make up the other members of the board and can out-vote the co-owners if there is no consensus on the best candidate.

Hicks and Gillett are not inclined to support the bid by Huang, as he has insisted there will be no profit for the Americans in his calculations over what the club is worth.

AUGUST 9
Huang wants to meet with
S.O.S. & ShareLiverpoolFC

By Antoine Zammit - Empire Of The Kop

In a statement issued today by SpiritOfShankly and ShareLiverpoolFC it was revealed that Mr. Kenny Huang would like to meet with representatives of both organisations when he (Mr. Huang) visits Liverpool.

Needless to say this is a very positive sign that Huang wants to hear the fans concerns, so far so good Mr. Huang.

Here is the full statement
Spirit of Shankly – ShareLiverpoolFC have been approached by the representatives of Mr. Kenny Huang who has restated his position as the representative of a serious bid for the ownership of Liverpool FC.

They have stated that Mr. Huang intends to be in Liverpool in the near future and he has asked to meet with representatives of Spirit of Shankly – ShareLiverpoolFC. They have said that the reason he wishes to meet with the supporters’ organisations is that the bidders see Spirit of Shankly – ShareLiverpoolFC as key stakeholders in the Club and the views of supporters are critical to the way they approach any deal.

They have made it clear that any discussion would be entirely without prejudice, in order to learn more about Spirit of Shankly – ShareLiverpoolFC, what the organisations want and to see if there are mutual areas of agreement.

We cautiously welcomed the approach and restated our position, made clear recently, that we are keen to engage with those charged with selling the Club and any credible potential purchasers. We recognise that the intentions of any potential purchasers need to be thoroughly examined prior to any purchase of the Club and involvement and discussion with supporters is key to that.

However, the Club, their agents and any potential purchasers need to recognise where the supporters’ organisations came from – they were born out of the betrayal by the current owners of promises they made when they purchased the Club and their action and behaviour afterwards.

In the same way that no potential purchaser will commit to any wish list from the supporters, Spirit of Shankly – ShareLiverpoolFC will not supply any endorsement to any potential purchaser without the most rigorous of examinations. This examination will include:

1. That they will be proper custodians of Liverpool FC recognising and never forgetting the unique nature of this Club;

2. That they invest proper equity into the Club to eliminate the current debt and to provide the funds to undertake the capital expenditure necessary to rebuild the Club including a solution to the stadium challenge and sufficient funds to allow the team to properly compete on the field;

3. That they are serious about engaging positively to seek ways in which the supporters are able to obtain an equity stake, with proper representation at Board level, within the Club.

We will keep you updated on any developments.


Spirit Of Shankly – ShareLiverpoolFC

AUGUST 9
Broughton seeks stability at Liverpool
as rival buyers prepare to bid

By Rory Smith - Irish Independent

Four of Liverpool's suitors are expected to table bids soon after club chairman Martin Broughton informed all interested parties they must submit formal, legally-binding proposals by the end of the week.

Kenny Huang, the Chinese entrepreneur who was the first to declare his hand in the battle to oust owners Tom Hicks and George Gillett and take control of the club, is expected to submit his offer, worth around £400m, early this week, despite continuing confusion over the identity of his backers.

Huang has held talks with Broughton and Barclays Capital (Barcap), the investment bank appointed six months ago to identify new owners. He is described as a "serious contender" by sources at the club, Barcap and the Royal Bank of Scotland, who own Liverpool's £237m debt. The three rival bidders who emerged after Huang's declaration of interest last week all have just five days to decide whether they will attempt to better that offer.

Of those suitors, the Syrian-Canadian businessman Yahya Kirdi seems the most bullish. Reportedly backed by money from the Emirate of Sharjah, Kirdi is thought to be Hicks and Gillett's preferred bidder. Meanwhile, Rhone Group, the New York-based private equity firm, and the Kuwaiti Al-Kharafi family are considering whether to crystallise their interest.

Broughton has insisted the process will not be an 'auction' in which the highest price wins, but rather one in which he attempts to secure the best possible future ownership for the club. The proposals must include detailed plans and provide proof of funds.

Broughton is believed to be keen to secure a cash-only sale to one individual, rather than to two or more parties, to avoid a repeat of the debt troubles Liverpool have endured under Hicks and Gillett. The club have seen several possible investors fail to strike a deal because of two years of stalemate, before Broughton arrived, on a board made up of rival Hicks and Gillett factions.

The club are also adamant any new owner must provide detailed plans for the construction of a new stadium on Stanley Park, while at least one of the bids is expected to include provisions to draft former players and some fan representatives on to an advisory panel in contact with the club's board.

Though Liverpool's club secretary, Ian Sylvester, suggested last week any deal would take weeks to complete, time is of the essence for the Anfield side. Hicks and Gillett paid around £36.5m in interest on their debt for the last period for which accounts are available and, the longer the process drags on, the more money Liverpool will be forced to pay RBS to service their debt.

AUGUST 8
Bank closes in on Liverpool

By Matt Scott - Irish Independent

Liverpool are two months from becoming majority-owned by the British taxpayer, which, it can be revealed, has become the likeliest outcome if the sale of the club has not neared completion in that time.

The Royal Bank of Scotland's main £237m (€285m) loan to the club expires on October 6 and must either be repaid or rolled over. Additional sums owing to RBS are believed to have increased total debt to the bank to £325m (€390m).

Liverpool's company secretary, Ian Silvester, said: "From what I understand, and that's all I can say, the urgency is there due to the pressure from the banks, so I would anticipate that something will be happening within the next four to six weeks or so."

One option open to RBS would be to put the club's parent company into administration, but that is not favoured since it would almost inevitably lead to a nine-point deduction under Premier League insolvency rules.

Instead, unless one of the parties involved in negotiations to take over at Anfield follows through with a formal offer, RBS's corporate-restructuring team would assume control of Liverpool and run the club as a wholly owned subsidiary. That would effectively put the five-times European champions in the hands of the British taxpayer who holds 84.42% of the issued share capital in RBS.

When the loans last required refinancing in April Martin Broughton was installed by RBS as club chairman. This is said to have been due to the inability of the current shareholders, Tom Hicks and George Gillett, to provide the necessary personal guarantees to the bank. But those close to the situation say RBS's patience has now reached breaking point.

In the absence of a takeover or fresh funding from the Americans the bank will be entitled to oust Hicks and Gillett from the board of Kop Football (Holdings), a step the bank is believed to be ready to take in October.

"One or two in the bank are getting twitchy about getting their money back at all," a source said. "And they are incredibly nervous about the current bids. They don't regard anything as particularly serious at the moment."

Those said to be keen on bidding include the Chinese Kenny Huang, the Syrian Yahya Kirdi, the Kuwaiti Kharafi Group, the US private-equity firm Rhone Group and, reportedly, now the Indian conglomerate Sahara.

RBS's prerequisite in the sale process is for repayment in full, though none of the bidders has yet provided proof of funds.

In an effort to bring greater order to the chaos around Anfield, Broughton has issued a request for all parties to demonstrate their funding by the end of the coming week. There were indications yesterday from Huang's camp that he will show he is capable of financing a bid.

AUGUST 7
Liverpool FC faces its biggest
ever decision over ownership

Comment by Dominic King - Liverpool Echo

The champagne should be chilling, the red carpet should be being unrolled and a sense of euphoria should be swirling around The Kop.

It has been another momentous week at Anfield, one that has seen Fernando Torres reaffirm his commitment to the cause, but if Liverpool supporters felt a confident assurance at its start, the weekend dawns with an increasing apprehension.

For while there is widespread glee that the ham-fisted, debt-laden tenure of Tom Hicks and George Gillett will soon be over, it is tempered by the fact that, to borrow an old analogy, Liverpool could actually jump from the frying pan into the fire.

Up until last Sunday, the vast majority would have been blissfully unaware of the Chinese mogul Kenny Huang - fewer still would have known about the merits of the Syrian businessman Yahya Kirdi.

Now though, their names are being rattled into internet search engines, as anxious Reds aim to discover whether they will be fit and proper people to run one of the globe’s most famous footballing institutions.

Without being overdramatic, this is the biggest decision that will ever be made surrounding Liverpool Football Club; one that will determine their position in the game for years to come. For that reason, judgements will be reserved for some time.

Unlike when Hicks and Gillett rolled into town, promising the earth but ultimately delivering nothing, Liverpudlians are not going to be seduced by sums of money that resemble international telephone numbers.

Caution has to – and must be – the watchword. If Huang and the Chinese Investment Corporation take control for instance, the figures with which Liverpool could end up dealing are mind-boggling but they will not guarantee nirvana for the club.

We are after all talking about businessmen. Hicks and Gillett did not get involved with Liverpool because they grew up idolising Billy Liddell and Albert Stubbins, they bought David Moores out because they spotted a chance to make big money.

Similarly, Huang and his associates – assuming they are successful – are not going to plough funds into Anfield fuelled by romance and nostalgia; this represents an opportunity for them to tap into the potential of the Far Eastern football market.

Of those who have shown their hands in recent days, Huang’s looks the most straightforward proposal even though Kirdi has made an offer that would enable Hicks and Gillett to depart with an eye-watering profit.

Inevitably, that means the pressure building around the situation becomes more intense by the day and the man at the centre of the action will perhaps be mindful of a quote issued by Liverpool’s former chief executive back in December 2004.

“We are evaluating our options in a measured way and we look forward to reaching the right conclusion,” said Rick Parry.

“It is about reaching the right conclusion for the next 100 years, not for the next few months as you only sell the family silver once.”

Martin Broughton dare not make the mistake Parry went on to make and, given his lifelong links with Chelsea, many will be viewing his role in the shaping of Liverpool’s future with great suspicion.

However, you do not occupy the roles he has in business if you are a fool and it is understood that Broughton has absolutely no intention of hurrying a deal through just to give the prospective new owners a chance to work in the current transfer window.

Broughton, Liverpool’s chairman, is acutely aware his efforts will be scrutinised years down the line and that is why he will not hoist a “sale agreed” placard up outside Anfield.

“There is no base line,” he said at the press conference held for Roy Hodgson’s unveiling as manager last month. “I’ve said it before and will say it again – this is an auction. When the winning bid comes through, we will do a deal with the best bidder.

“The best bidder may not be the highest bidder. This is more than just money. It is about the stadium development, it’s about the team – it’s about the whole piece. Once we have been through that process, the best bidder gets it.”

With that in mind, there should be some reassurance that just because Kirdi appears to be offering more than Huang –for obvious reasons, Hicks and Gillett favour his bid – he is not in the driving seat.

There is momentum for a decision to be taken in days but it is imperative that Liverpool’s executives pause to survey the bigger picture; they will not get another chance to make the coming decades as successful as the past.

AUGUST 7
Ganis and Huang will make 'substantial
money' available to Liverpool

By Matt Scott - guardian.co.uk

Chinese ownership of Liverpool would return the club to its former position of primacy in the transfer market, a representative of Kenny Huang's QSL consortium announced today.

Marc Ganis, a Chicago-based sports executive who has struck previous deals for Huang's QSL vehicle and is his long-term associate, acted as spokesman for the Chinese consortium today. He confirmed that an outline takeover proposal had been submitted to Barcap, the investment-banking division of Barclays, and the Liverpool chairman Martin Broughton, who together are overseeing the sale of the club.

If the bid is successful, Ganis assured Liverpool fans that wage and transfer budgets under QSL would allow the five-times European champions to compete on equal terms with Manchester City, Real Madrid and Internazionale.

"Liverpool is and always should be one of the highest-spending clubs in all of football," he said. "And our financial models presume Liverpool will be at or near the top in spending on players every year."

That will be of great comfort to Liverpool fans who have grown frustrated at the payment of up to £43m a year in interest over the three years since Tom Hicks and George Gillett's highly leveraged takeover. In the 12 months to 31 July 2009, those payments meant Liverpool's wage bill was severely restricted – equivalent to only 83.5% of Manchester United's last year and 61.5% of Chelsea's.

The Chinese group have also promised to invest in infrastructure, one of the key demands that must be satisfied for a sale to be approved. Although the board want to complete the deal before the close of the transfer window on 31 August, they are also anxious that the transaction should secure a legacy for the club. The successful bidder must clear the £350m-plus debt and demonstrate they have the means to build a new stadium.

Ganis is therefore aware of the need to appease those directors who are acting not in search of personal profit but as custodians of the club, and his statement today was loaded with messages for the board and shareholders.

About Gillett and Hicks's hopes of raising up to £800m through the sale, Ganis was dismissive. "What is not one of our goals is the enrichment of the existing owners," Ganis said. "If we submit a proposal and it is accepted, it would be focused on the future and not the past. If anybody wants to [pay for Hicks and Gillett's shares], good luck. We know what we would be prepared to do. If somebody else wants to look at it in a different way, it's their money. That would be their business, not ours."

That was a reference to the proposal fronted by Yahya Kirdi, which would offer staggering returns for the shareholders' equity. Unsurprisingly, Kirdi's is the consortium Hicks and Gillett have been enthusiastically promoting. However, at a time when no other bidder has offered anything for the equity, Kirdi's proposal promises such outlandish sums for Hicks and Gillett that sources inside the sale process believe his consortium lacks any credibility.

There is a limit to what Hicks and Gillett can do. The strictures of their most recent refinancing of the £237m loan from Royal Bank of Scotland ensure that any takeover approved by the board must go ahead irrespective of the Americans' votes as shareholder-directors. That means Broughton, Ian Ayre and Christian Purslow hold the destiny of Liverpool in their hands, since they are capable of outvoting the two Americans. Seemingly with that in mind, there was a deliberate sweetener for Ayre and Purslow from Huang.

"From what we have seen from afar, many of the people currently running Liverpool are doing a good job," said Ganis. "There shouldn't be an expectation there would be a mass upheaval if we submit and are approved."

QSL's Chinese bid remains favourite ahead of Kirdi, Kuwait's Kharafi Group and Rhone Capital but it is only first among equals. The absence of any formal approach with sufficient financial muscle to meet the various requirements of the sale means no bidder can be certain of taking control.

AUGUST 6
Anfield demands answers

By Ian Herbert - Irish Independent

Liverpool manager Roy Hodgson is left with little choice but to plan his summer spending without factoring in a penny of the £150m transfer fund promised within the Chinese bid to take ownership of the club.

The Anfield board yesterday sought categoric confirmation of the finances behind the proposed buy-out headed by Kenny Huang -- which the club's investment bankers maintain is a credible offer -- after the sovereign wealth fund linked to the deal was reported to have denied any link to or knowledge of Huang and the bid for Liverpool.

A spokesman for the state-owned Chinese Investment Corporation (CIC) was reported to say there was "no way" the fund would be involved in such a risky deal, adding: "Next they'll say CIC is going to buy 'Playboy'."

Barclays Capital (BarCap), however, which is overseeing the sale of the club, does believe Huang's bid is credible. Both BarCap and Liverpool are still awaiting definitive proof from Huang that he has CIC's backing.

The Chinese Government, which does not like a high public profile, may be unsettled by the enormous profile afforded them already by the story and may be seeking to take a step back while negotiations continue. It is worth noting that no regulatory bodies would be able to take action against the CIC in this instance if the statement from China later turns out to be misleading.

Huang -- who has now transferred his public relations office on the subject from London back to Hong Kong -- has been put forward as the public face of the bid.

The picture is rendered more complicated by a message, sent from Huang's own mobile telephone on Tuesday to a journalist at the respected Chinese publication 'Titan Sport', stating that "Mr Huang would also like to deny that there is any involvement of mainland China state-owned enterprises in his business dealings."

Development
The statement also said that "if there is any related development, he will make a further announcement".

As of last night this statement, circulating in the Chinese media, had not yet been released by Huang's PR agents, Hill and Knowlton, who claimed no knowledge of it and could not confirm CIC's support for Huang's bid. Huang was said to be travelling by air yesterday, preventing further inquiries.

Whatever the answer to such developments, Liverpool supporters certainly face a tense period as the club's board await definitive proof of Huang's bid. Hodgson, who last night oversaw his first game at Anfield, was continuing his £8m pursuit of Juventus midfielder Christian Poulsen.

It is unclear, meanwhile, whether CIC, the $300bn sovereign wealth fund which is the name attached to Huang's bid, would take well to the high-profile nature of football club ownership.

CIC does have a record of investing in enterprises which have interests in China -- and Liverpool certainly has its eye on the huge Chinese enthusiasm for football. The club's interest in becoming a major name in China is also illustrated by its new £80m sponsorship deal with Standard Chartered, whose business interests are heavily concentrated in Asia and China.

CIC has been keen to diversify away from the dollar and out of US bonds. It is heavily profit-driven -- recording only six days ago an 11.7pc profit on $58bn dollars invested overseas last year -- but operates in line with the Chinese culture of long-term finance thinking, where profit is not expected immediately.

That would fit with Anfield. As would the Chinese taste for buying into premium Western brands.

But a number of sports finance analysts in China view the idea of investment in Liverpool as highly implausible -- most of all because the turbulent ride experienced by the Abu Dhabis at Manchester City is something the Chinese would find even more distasteful.

The secretive nature of CIC, whose disclosures on their own investments do not go beyond the minimum statutory requirement, also seems like an odd fit with a very public club like Liverpool. In 2009, the CIC fund held shares worth a total of $9.6bn in dozens of US-listed companies including Coca-Cola, Citigroup and Morgan Stanley. Liverpool would be something completely different.

Analysts in China are not reading any significance into CIC's decision to divest $558m of its Morgan Stanley holdings over the last few weeks -- a figure equal to Liverpool's worth. CIC's vast funds under management do not demand the same sell-to-buy culture which has characterised the football club's transfer market policy.

Liverpool's non-executive chairman Martin Broughton, who is leading the hunt for a buyer, was certainly confident enough in that mission earlier this week to declare that he wanted the club's sale concluded by the end of this month.

What next for Liverpool
1 What is the China Investment Corporation?

The China Investment Corporation is an investment fund set up in 2007 for managing some of the near two trillion dollars of currency reserves of China, a country which has amassed them by exporting far more products than it imports. It set out with $200bn under its own management and has sought to make profits by investing in natural resources and energy companies in Asia, Africa and the United States, as well as US-listed companies including Coca-Cola, Citigroup and Morgan Stanley. But nothing like a football club.

2 Why would they want to own a football club?

Here is one of the mysteries currently surrounding their link to a bid for Liverpool, given the Chinese business world's dislike of a high profile. When Abu Dhabi invested in Manchester City it was with the express desire to enhance the image of the emiracy. China would not go into business for reasons like that.

But the need for Tom Hicks and George Gillett to get rid of Liverpool in a hurry makes the process effectively a fire sale, so maybe CIC feels there's a quick private equity profit there -- unpalatable though that may be to Liverpool fans.

A huge investment is needed -- perhaps £1bn by the time the £237m debt is paid off, a new stadium built and the manager equipped with a stronger squad. But China likes to be associated with the biggest and the best products and for that reason association with a reinvigorated Liverpool FC might just appeal.

3 Would Kenny Huang pass the 'fit and proper persons' test?

If he can demonstrate that CIC is backing him then almost certainly yes. The new 'owners and directors test' prevents 'persons barred from other sporting organisations competitions and professional bodies' from being proprietors -- and Huang actually seems to have been an altruistic part of the China sports scene.

Key, though, is the 'means and abilities test' by which he must provide future financial information to show the projected financial position of the club and 'proof of funds' to show he can sustain the club for the year ahead.

4 Should we believe yesterday's reports of CIC denying they are behind the bid?

It might not be all it seems. After all, Liverpool executive chairman Martin Broughton said he would separate the "wheat from the chaff" among bidders in July and Huang has made it through.

The level of noise associated with Huang in the past four days has clearly unsettled those Chinese associated with him, enough for him to instruct those speaking for him in London to stop doing so. In the same way that Sulaiman al-Fahim's profile caused the Abu Dhabi's embarrassment at Manchester City -- they quickly dropped him -- the Chinese may be involved, but now seeking a different approach.

Huang yesterday denied the involvement of "mainland China" in his bid which suggests it may be presented as one centred on Hong Kong, his own base. That would deflect from the idea of the Chinese nation's funds being tied up in a football club's fortunes, which may not go down well in that country. If the denial is real Huang has managed to get to the serious bidding process on a fairy story.

5 What are the other bids on the table at Anfield?

The prospective bids believed to be under most serious consideration are those from China and the New York based Rhone Group, run by the billionaires Robert Agostinelli and Steven Langman.

Rhone put forward a proposal offering Liverpool £100m for a 25pc stake in March as the club engaged in an ultimately fruitless attempt to raise equity.

Rhone made no secret that it would continue to monitor the club's situation and it is believed to be ready to resurrect that offer, while it remains hopeful of attracting a majority partner to buy the remainder of the club.

Both Barclays Capital and Liverpool's bankers Royal Bank of Scotland are thought to prefer a complete sale to just one party. Keith Harris, chairman of investment bank Seymour Pierce which has conducted the purchase of several Premier League clubs, has said he represents a party "very serious" about buying Liverpool but has not said who. The Syrian former international footballer Yahya Kirdi, who says his funds come from Sharjah, is not considered a serious bidder.

6 Who has the last say on which bid is successful?

Broughton seems to feel that a three-man majority on the five-strong Liverpool board would be enough to hold sway and sources suggest that he took up Hicks and Gillett's request to lead the search for a buyer on such conditions.

The concern among some in the financial community with Liverpool affinities is that if the Chinese bid falls through, then Royal Bank of Scotland's desire to have its £237m debt paid down could see the club sold to a buyer who would line the Americans' pockets, but not leave any money for the future develop-ment of the club, including players and the vitally needed new stadium.

But RBS is the banker to Liverpool, handling all its transfer and commercial business and insists that the club's successful future is as much in its own interests as a resolution to the present messy situation.

Thor Zakariassen ©