AUGUST 5
Confusion over potential
Liverpool FC bidder Kenny Huang

Daily Post

Confusion surrounds Kenny Huang and his interest in buying Liverpool FC after claims about his links to the Chinese government were met with an apparent denial which was then subsequently dismissed.

Reports suggested Huang is fronting a bid backed by China Investment Corporation (CIC), the country's sovereign wealth fund which manages a £188billion portfolio.

Claims that CIC has sold £351million worth of shares in the global financial services firm Morgan Stanley, of which it acquired a 9.9% stake three years ago, in the last couple of weeks - a figure equivalent to the debts currently held by Liverpool - appeared to add credence to the link. But then suggestions emerged that Huang's PR advisors had sent a statement to journalists in China refuting there was "any involvement of state-owned enterprises in his business dealings".

However, when contacted, a spokeswoman for Hill and Knowlton Asia denied any statement had been released and said they had not issued any clarification which referred to the Chinese government.

And, according to the Financial Times, a spokesman for CIC said they had never heard of Huang or a plan to buy Liverpool.

CIC has numerous multi-million dollar global investments, including a stake in Canary Wharf, but there has been scepticism in the Far East about them buying into a Premier League club.

And it is a view held by sports finance expert Tom Cannon from Liverpool University.

"I have serious doubts about this deal," he said. "It's not the kind of investment I'd expect from the Chinese government. Frankly it doesn't ring true that they are involved.

"Until the Chinese government come out and say 'We are interested' I don't believe it. It's hard to see what's in it for them."

AUGUST 5
Huang quiet on China link

Sky Sports

Prospective Liverpool owner Kenny Huang has refused to comment on reports his consortium is being backed by the Chinese government.

George Gillett and Tom Hicks are looking to sell and several parties are reportedly considering a takeover.

Chinese businessman Huang revealed earlier this week that he was interested in investing in Liverpool, although he has yet to make a formal offer.

Reports in Thursday morning's press have now suggested that the Chinese government is Huang's mystery backer.

China Investment Corporation (CIC), is the country's overseas investment arm that was set up in 2007 and reportedly has $332billion to spend abroad.

"We will not confirm or deny any matter in relation to the Liverpool Football Club unless and until we and the representatives of Liverpool FC have chosen to do so jointly," said a spokesman for the Hong Kong-based businessman.

Huang has yet to make a statement in response to the story but any potential buyer must be cleared by the Premier League.

Premier League chief executive Richard Scudamore will not look into the matter further until China's involvement is confirmed but says such a scenario would be acceptable.

"If they had the backing of the Chinese government we wouldn't have any problem with that, any more than we do the Manchester City situation, with effectively sovereign wealth out of Abu Dhabi," Scudamore told Sky Sports News.

Asked about China's human rights record, he added: "I don't think that is something we would get into. I don't think it is right to be going into detail."

AUGUST 4
Chinese government linked
with move to buy Liverpool

BBC Sport Online

The competition to buy Liverpool has intensified amid further reports that the Chinese Government could be linked to a takeover bid for the club.

Reports suggested Kenny Huang, who has declared an interest in buying the club, was backed by the state-funded China Investment Corporation (CIC).

But a source close to CIC told BBC Sport a link with Huang's QSL Sports Ltd would be "highly unlikely".

It is understood as many as six rival bids were submitted last week.

On Wednesday, Syrian businessman Yahya Kirdi said his consortium was in the "final stage of negotiation".

Current owners George Gillett and Tom Hicks put the club on the market in April, with Liverpool's main creditor the Royal Bank of Scotland owed about £237m.

Martin Broughton was brought in as chairman to oversee the sale process and he and investment bank Barclays Capital, who are leading the sale, will elect a preferred bidder by the end of next week.

Hong Kong-based investor Huang admitted his interest on Wednesday and is thought to value the club at about £325m, but has not yet made a formal offer.

A statement from Huang's PR agency read: "Mr Huang would like to emphasise that he has registered interest in investing in Liverpool FC but has made no formal bid."

Reports on Thursday had suggested Huang's interest in Liverpool is backed by (CIC), an investment arm of the Chinese Government which also owns a stake in Canary Wharf.

Kirdi's group of Canadian and Middle East investors claims it has agreed terms with Gillett and Hicks and is negotiating a purchase agreement with the Americans.

Kirdi, who is now a Canadian resident and represents the Canadian-based group of investors, said: "Agreement has been reached on all major terms including the purchase price, repayment of the existing bank debt and financing of a new stadium in Liverpool's Stanley Park.

"A formal purchase agreement between the parties is in the final stage of negotiation."

Kirdi promised that if the consortium was successful in its bid, money would be made available to Liverpool manager Roy Hodgson.

He added: "With additional money to improve the squad and financing in place to build the new stadium, LFC will be on a solid foundation to compete in the Premiership and in Europe for years to come."

AUGUST 4
Huang: No Reds offer

Sky Sports

Chinese businessman Kenny Huang has confirmed his interest in investing in Liverpool, but says he has not made a formal offer for the club.

Huang, who is the founder and chairman of Hong Kong-based investment company QSL Sports Ltd, has been linked with a bid to buy out Liverpool's debt.

Current Liverpool owners George Gillett and Tom Hicks are looking to sell and several parties are reportedly interested in a takeover.

However, in a statement released to The Sport Briefing by Huang's representatives, the QSL chief has stated that reports of an official bid are premature.

The statement read: "In response to widespread media reports that Kenny Huang had made a formal bid for Liverpool Football Club, Mr Huang would like to emphasise that he has registered interest in investing in Liverpool FC but has made no formal bid.

"There has been much speculation and commentary from a wide array of people, many of whom have little knowledge of the facts.

"Unless there is a statement that specifically comes from Mr Huang or his authorised representatives, which presently is solely Hill & Knowlton Hong Kong office, we would suggest such comments should be given little credence.

"At this point in time there is nothing further for Mr Huang to announce. If there comes a time where this changes, we will make the appropriate announcements."

Huang is backed by one of the wealthiest investment funds in the Far East and is well known in China for his interests in baseball and basketball, having last year bought a 15% stake in NBA franchise Cleveland Cavaliers.

He also has long-term deals to develop China's domestic baseball and basketball leagues in a nation where the two sports are rapidly growing in popularity.

AUGUST 3
Liverpool's stock may rise with
Wall Street graduate Kenny Huang

By Rory Smith - Telegraph.co.uk

Once bitten, twice shy. The identification of Kenny Huang, the Chinese entrepreneur, as the man fronting a bid to oust Tom Hicks and George Gillett, after three long, debt-ridden years, from Liverpool may have excited the club's fans, but bitter experience has taught them that football contains no knights in shining armour. The doubts have already set in.

Huang's background will hardly allay their fears. He may have been voted China's philanthropist of the year in 2009, but his motives in lodging a £325 million bid for England's most decorated football club are hardly likely to be altruistic.

Born in southern Guangdong province in 1964 and apparently a fine badminton player in his youth, Huang was the first Chinese graduate to work on Wall Street, working as a public relations executive before moving to private wealth management.

He has invested in companies as diverse as Xinxin Mining, the Longrun Tea Group and China Railway. He has forged a reputation as a deal-maker, mostly brokering agreements between Chinese and American companies. He is a money man.

That sport appears to be an abiding passion provides little solace. His reach extends into Chinese baseball and basketball, and he has struck deals to market NBA side Houston Rockets and Major League Baseball outfit the New York Yankees in China. In May last year, he took a 15 per cent stake in the Cleveland Cavaliers NBA franchise.

Kenny, born Jianhua, Huang is clearly no sugar daddy, though. "There are really three keys to playing the sports business," he says. "Media, sponsors and capital markets. You may know sports, but you may not know capital markets. But if you know capital markets, you may not know the media well. I think I have got all three successful ingredients."

It should be of no surprise that Liverpool fans remain sceptical. They may be desperate to rid their club of Hicks and Gillett, who have brought them debt, broken promises and misery, but they will not make the same mistake twice.

The Americans entered Anfield in 2007 on similar promises, of being able to maximise the club's earning potential, dragging a brand run as a corner shop into the age of the supermarket. Three years down the line, the club's financial plight is all-consuming, improved commercial performance or not.

Yet to suggest Huang, Hicks and Gillett are cut from the same cloth could be unfair. Huang has enjoyed nothing but success. The Cavaliers, hardly traditional heavyweights in the NBA, may have lost their star turn, LeBron James, to the Miami Heat when his contract expired this summer, but it was not because of financial constraints. Huang's connections have brought a stream of Chinese multinationals to Cleveland's door. They were able to better any offer put to the biggest star in world basketball.

Though basketball's earning potential in China is enormous – some 300 million youngsters play the game – the connection with Liverpool seems a perfect fit.

In the 1980s, when Chinese state television began to show English football, Liverpool were dominant. Millions of Chinese watched Ian Rush, Kenny Dalglish and the like in a succession of cup finals. The red strip probably helped, too. They remain a powerful brand in the world's largest emerging economy.

Huang, no doubt, is attracted by that. He is, in all likelihood, planning how to capitalise on it. Modern football is, like it or not, about money. That is no reason to dismiss Huang as another vulture, looking to run Liverpool into the ground. If his track record holds true, he could be the perfect man to return them to their perch.

From Thailand to Kuwait, the buyers who failed

Thaksin Shinawatra
The then-Thai Prime Minister attempted to buy Liverpool, partially using public funds, in 2004, but his interest dissipated amid doubts over his human rights record. He did, though, buy Manchester City in 2007.

Steve Morgan
A Liverpool fan who built a fortune from property, Morgan emerged as a contender to buy the club in 2005. His bid was supported by Liverpool’s current managing director Christian Purslow, but he failed to strike a deal with then-owner David Moores. Morgan now owns Wolves.

DIC
The investment arm of Dubai’s ruling family were close to buying the club in 2007 before Moores, at the last minute, chose to recommend Hicks and Gillett’s offer. A year later chief executive Samir Al-Ansari offered the Americans £500 million, but was turned down.

The Al-Kharafi family
Kuwait’s rulers came close to buying Liverpool in the summer of 2008, but were turned down at the last moment. Sources close to the deal have suggested a deal was less than 24 hours from being sealed.

AUGUST 2
Torres' Liverpool future
hinges on quick sale of club

By Matt Scott - guardian.co.uk

Kenny Huang's bid for Liverpool is only one of "several" offers for the club, according to their chairman, Martin Broughton.

Huang has yet to enter formal due diligence, but talks are sufficiently advanced with other bidders for there to be the prospect of a takeover at Anfield before the closure of the transfer window on 31 August. That could have an effect on the future of the striker Fernando Torres, who returned to training at Melwood today.

"It still remains the objective to conclude a deal before the end of the transfer window," Broughton told the Guardian tonight. "That remains the objective but there are no deadlines, and we will continue working to complete the process."

Broughton conceded that 31 August is "a very important date" for fans and some Liverpool players. Torres is highly coveted – both Manchester City and Chelsea are reportedly on alert – but such is the Spaniard's stature that his departure would affect the valuation of the club in one bidder's case, at least.

The apparent existence of multiple bidders means that the club's US co-owners, George Gillett and Tom Hicks, could end up making a significant profit from their controversial three-year tenure at Anfield. However, the pair will not have the final say in who may take over.

"There could be a possible realisation of an equity consideration," Broughton said. "But both George Gillett and Tom Hicks remain on the board and they have given commitments that the board of Kop Holdings [Liverpool's UK parent] is the party that is responsible for the sale."

Gillett and Hicks are believed to have placed an US$800m (£504m) valuation on Liverpool, but sources close to the talks insist they will have to accept a much-reduced sum once any deal is concluded. With only a calendar month until the close of the transfer window, the completion of due diligence must come fast. Yet, as an indication of how far advanced talks are with the interested parties, no money has yet been transferred into an escrow account, which would be one of the final steps before a transaction can be finalised.

Huang, a China-born Wall Street financier, raised the prospect of a bid for Liverpool on behalf of a sovereign wealth fund belonging to what has been described only as a large country in east Asia.

There had been suggestions that Huang would seek to acquire the debt from Liverpool's principal lender, Royal Bank of Scotland, in an effort to gain financial control over the club. However, Broughton insisted that is not the case.

"Any bids that go straight to RBS – and there have been several – come to me and are directed to Barcap," Broughton said. "RBS are not involved. The control remains with the board."

The part-nationalised RBS bank retains confidence that Broughton and Barcap – the investment-banking division of Barclays bank, retained to conduct takeover negotiations – will be able to conclude a deal before the next refinancing deadline, in October.

Whether that will be with Huang is another matter. However, it is known that he wishes to expedite discussions.

"He wants to get it done quickly so investment can come this summer," a source close to his proposed bid claimed. "Liverpool need investment in the playing squad and infrastructure, and Huang wants to build the [new] stadium. The club has an outstanding reputation but does not have the infrastructure to keep with it and make it grow."

One thing is clear, however. Huang considers Torres's retention at Anfield to be central to the success of his investment in Liverpool. One member of his retinue said he views the Spaniard as a "talismanic" figure whose departure would alter his valuation of the club.

Torres has told friends he is committed to remaining a Liverpool player but reserves the right to quit if they are incapable of meeting his ambitions.

AUGUST 2
Bank denies
Liverpool sale approach

Reuters

Liverpool's major creditor, Royal Bank of Scotland, have denied they were in talks with a Chinese businessman over the sale of the Premier League club.

But a source close to Chinese businessman Kenny Huang has said talks to buy Liverpool's £237 million debt with RBS were under way as a first step towards a purchase deal for the 18-times English champions.

Media reports have claimed that Huang, a Guangdong-born US citizen who already has interests in Chinese baseball and US basketball, had approached the bank as part of a scheme to eventually acquire control of the club.

But an RBS spokesman said: "We are not in talks with any bidder about the sale of Liverpool football club."

Asked about the denial, the source insisted Huang wanted to buy the Anfield club, who were put up for sale by unpopular American owners Tom Hicks and George Gillett in April.

Huang, chairman of the Hong Kong-based QSL Sports Group, has not commented on the deal but appointed a British media relations firm to represent his interest in the five-times European champions.

Liverpool's owners, who bought the club in February 2007 from former owner David Moores for £218.9m, instructed Barclays Capital to find a buyer in April and appointed British Airways chief Martin Broughton as chairman to oversee the sale.

Barclays Capital refused comment on Monday.

The American duo have faced intense criticism and hostility from Liverpool fans, with frequent demands for their removal, after loading the club with huge debts.

Huang issued a statement in March denying comments attributed to him in the media about the future of then Liverpool manager Rafa Benitez but declining comment on his interest in purchasing the club.

He also owns a minority share in the US basketball team Cleveland Cavaliers.

Media reports have linked Syrian businessman and former international footballer Yahya Kirdi with a deal for Liverpool, who suffered a dismal campaign last season, finishing in seventh place and missing out on a lucrative Champions League spot.

AUGUST 2
Huang plans to invest
heavily in Liverpool

RTE

Chinese businessman Kenny Huang has pledged to invest heavily in Liverpool should his ownership bid succeed.

The head of Hong Kong-based investment company QSL Sports Ltd has been in talks with Royal Bank of Scotland for some time over buying out the Reds' £237million debt.

That would give him 'a ridiculously large amount of leverage', a source told Press Association Sport, in order to be able to force out unpopular owners Tom Hicks and George Gillett.

But the spending would not stop there as Huang, whose interest is described as 'remarkably serious', is keen to get a deal done in order to be able to furnish manager Roy Hodgson with money to spend in this month's transfer window.

In addition, he will also turn his attention to finally getting Liverpool's new 60,000-seater stadium built in Stanley Park after three years of inertia.

'He wants to get it done quickly so investment can come this summer,' said a source close to the bid.

'Liverpool need investment in the playing squad and infrastructure and Huang wants to build the stadium.

'The club has an outstanding reputation but does not have the infrastructure to keep with it and make it grow.'

Huang is backed by one of the wealthiest investment funds in the Far East and is well known in China for his interests in baseball and basketball, last year buying a 15% stake in American NBA side Cleveland Cavaliers.

He was first linked with a buy-out at Liverpool two years ago but believes now is the time to make his move.

Huang is making all the right noises to get supporters on board but, although the majority will be delighted to see the back of Hicks and Gillett, the fans will be wary of grandiose promises.

The American owners made similar claims when they assumed control at Anfield just over three years ago, with Gillett insisting there would be a 'spade in the ground (for the new stadium) within 60 days'.

That particular boast, like many others, remains unfulfilled while investment in the squad has gone backwards during their tempestuous reign.

The pair put the club up for sale in April after admitting they had taken Liverpool as far as they could and independent chairman Martin Broughton was appointed along with Barclays Capital to find a new buyer.

However, Huang bypassed that process completely by going straight to major creditors RBS.

He hopes by making an offer which will see the bank receive most of their money back he can stay one step ahead and force Hicks and Gillett out of Anfield.

'By going to RBS you can leverage a large amount of pressure that no-one else can on the owners,' the insider added.

'It is a deal which has no interest in shareholders, meaning there will be no profit for Hicks and Gillett.'

Gillett informed RBS last week that he was in advanced negotiations with Syrian businessman Yahya Kirdi.

However, this has been viewed as a stalling tactic in an attempt to delay the bank's considerations.

If RBS decide to turn down Huang's proposal - and no new viable bidders are forthcoming - they have the option of calling in their loan in October.

It would then be classed as 'distressed debt' but with the transfer window, by then, having closed Liverpool would be a much less attractive proposition to investors.

Huang is believed to have already spoken to senior figures at Anfield to express his seriousness about a buy-out and in the hope that his message will filter down to help persuade top stars like Fernando Torres, who returned to training today after his post-World Cup break, the club does have a better future.

Despite Huang going public with his offer there have reportedly been several other bids.

BBC Sport claim as many as six were submitted last week and Broughton and investment bank Barclays Capital will elect a preferred bidder by the end of next week.

AUGUST 2
Liverpool co-owners set to be ousted
by Chinese billionaire Kenneth Huang

By Rory Smith - Telegraph.co.uk

Kenneth Huang, a Chinese billionaire, has made a direct offer to the Royal Bank of Scotland to buy Liverpool’s £237 million debt and oust the club’s current owners, George Gillett and Tom Hicks.

In an effort to delay RBS accepting the offer, Gillett has presented Syrian businessman Yahya Kirdi as a viable bidder for Liverpool.

Gillett informed RBS last week that he was in advanced negotiations with Kirdi, a former Syria international footballer, after Huang entered into talks with the bank over a deal that would see the American and his partner, Tom Hicks, exit Anfield without any profit.

Huang, a Wall Street stockbroker and chairman of the Hong Kong-based QSL Sports group, is backed by one of the wealthiest investment funds in the Far East. It is believed he has already approached a number of senior figures at the club to prove his determination to force Hicks and Gillett out, while he will also ask Fernando Torres, due to return to training today, to delay a decision on his future.

Huang’s bid will have the financial clout to provide the Spaniard with the squad reinforcements he has made plain he wishes to see if he is to stay on Merseyside and will clear the club of debt, but that proposal is unattractive to Hicks and Gillett.

By approaching RBS directly, Huang hopes to seize control of the club by guaranteeing the repayment of the vast majority of the debt the Americans have laden on to Anfield. His offer, though, will fall far short of the £600? million price Hicks and Gillett expect for their shareholding in the club.

As a condition of the refinancing deal put in place this year — which coincided with the appointment of Martin Broughton as Liverpool’s chairman — RBS can take control of the sale and negotiate a deal should they feel such action represents the best course to repay their loan and secure the sale of the club.

Gillett, though, had hoped to delay the process by introducing Kirdi as a possible alternative, to force Huang — who hopes to conclude the deal in the coming days to ensure manager Roy Hodgson has the chance to strengthen his squad this month — to make an improved offer.

RBS, who are obliged to listen to any bids raised by the club’s owners, have granted him time to discuss a deal with the Syrian, though sources at Liverpool have dismissed the idea that the businessman is a legitimate contender to buy the club and he is not expected to lodge a firm bid.

Kirdi, a long-term friend of Gillett’s son, Foster, was first linked with a takeover in April, but an offer failed to materialise after it emerged he was not, as suggested, backed by funds from the United Arab Emirates.

The Americans officially put the club up for sale in April, appointing Broughton as chairman and Barclays Capital to oversee the process. As recently as July 1, Broughton was bullish about triggering an “auction” for the club, insisting a sale could be completed before the end of the summer transfer window.

However, no firm offers have been received and RBS face the prospect of Hicks and Gillett retaining control beyond the end of the month, when Liverpool become a significantly less attractive proposition, thanks to the closure of the transfer window.

Despite reports that RBS had, with the appointment of Broughton, agreed to refinance Liverpool’s debt for another year in order to grant the British Airways chairman time to guarantee a sale, the bank has the option of calling in a portion of the debt in October.

Should Huang’s bid be rejected by the bank and no offer at the level Hicks and Gillett hope be forthcoming, Liverpool’s loan could become distressed debt, raising the spectre of the club being put into administration.

JULY 29
Liverpool supporters in America
call for owners to go

By Ian Ferris - tribalfootball

Liverpool’s New York Supporters Club have joined the calls for Tom Hicks and George Gillett to sell the club immediately, reports the Liverpool Echo.

LFCNY, which is the oldest and biggest fans club in North America, is joining forces with Spirit of Shankly to crank up the pressure on the Reds’ owners.

In a statement they said: "They are nothing more than financial parasites who are using the club we have known and loved all our lives for nothing more than increasing their bank balances.

"They care not for our 18 League Championships; they care not for our 5 European Cups; they care not for our 3 UEFA Cups; they care not for our 7 FA Cups; they care not for our 7 League Cups; they care not for our 3 European Super Cups.

"They care not for the Liverpool way, for the fans, for the history, for the memories, for the glories of our great club. For the glory that is Liverpool FC.

"They are not fit and proper persons to be the guardians of Liverpool FC.

"All they have contributed to Liverpool FC since that horrendous day in February 2007 is shame and dishonor.

"When they arrived, the club debt stood at £44.8 million; we were told that their debts incurred in buying the club would not be foisted upon the club. We were also told that work would begin on a new stadium in 60 days.

"This summer, the debt of Liverpool FC is £350 million and there are no plans for any stadium and the manager Rafael Benitez has been fired.

"Lies, subterfuge and debts. This has been the sad and sorry story of the tenure of Tom Hicks and George Gillett at Liverpool FC.

"In coming weeks, the LFCNY will be working closely with all the other Liverpool supporters’ clubs in North America and Spirit of Shankly to make sure that these two men will have nothing more to do with Liverpool FC.

"The people of Liverpool, the fans worldwide and the club itself deserves better than the steady diet of falsehoods and insults that have been served up by Tom Hicks and George Gillett.

"Get out of our club now and forever. You’ve done enough damage. Go before you do any more."

JULY 1
Broughton: No bids
for Liverpool yet

TEAMtalk

Chairman Martin Broughton says Liverpool have not yet received any bids since they were put up for sale in May by Tom Hicks and George Gillett.

There has been much speculation about who is interested in taking over from the American pair, who finally admitted two months ago they had taken the Reds as far as they could after three turbulent years.

But Broughton said he expected the first serious offers to come in within a couple of weeks and the process would then continue after that with a view to a final sale being completed by August or September.

"There have not been any offers at this stage," said the British Airways chairman who was brought in to oversee the sale.

"There haven't been any offers to turn down and I wouldn't have expected there to have been at this stage.

"There are a number of interested parties but there's no specific deadline on it.

"We are looking to the middle of July-ish for the first round of bids but that's not a final stage - that's a first entry through.

"We're hopeful - and I wouldn't put it any stronger than that - that a deal can be done by the end of the transfer season.

"That was always from the outset a hope rather than necessarily an expectation, because these things can take time.

"We are on course, pretty well, with where we would have expected to be."

Hicks had been quoted as suggesting the asking price for the club could be as high as £800million and they would hold out for the best offer.

However, Broughton - appointed by Barclays Capital - confirmed Hicks and Gillett could not veto a sale and no acceptable figure had been set to sell.

"The process is well under way. The owners have stepped aside, stepped down. I'm overseeing the process and Barclays Capital are running the process," he added.

"The owners can't block the sale of the club. I read all too frequently numbers being floated about in the media, normally associated with Tom Hicks' name. I would like to make it clear there is no number. There is no base line.

"This is a willing buyer, willing seller auction. We will do a deal with what we consider to be the best bidder.

"The best bidder may not be the highest bidder. It's about more than just money.

"It's about stadium development, the team and the whole piece.

"Once we've been through the process, the best bidder gets it."

JUNE 22
Royal Bank of Scotland turn up
the heat on Liverpool FC owners

By Dominic King - Liverpool Echo

The Royal Bank of Scotland are ready to turn up the heat on George Gillett and Tom Hicks to pursue a quick sale of Liverpool Football Club.

Liverpool supporters bombarded RBS Chief Executive Stephen Hester with an email campaign recently, aimed at getting the bank to reconsider the financing deal they have in place with the Reds’ co-owners.

A substantial part of Liverpool’s £237m debt is owed to the government-owned RBS and Hicks and Gillett were forced to re-negotiate an extension on the terms of the deal back in spring.

The RBS have made it clear they are prepared to be patient to maximise Liverpool’s hopes of obtaining a successful sale of the club but they do not want it dragging on unnecessarily – as they want to see the Reds flourishing.

An email to one Reds’ fan from Roger Lowry, the RBS’ head of public affairs, read: “We are confident that the Chairman and the Board will be mindful of the need to avoid any unnecessary delay in concluding a sale, as it is in no one’s interest to risk deterioration in the performance of the Club prior to it being sold.

“Our common goal is the long-term success of Liverpool Football Club and the Bank’s primary objective is to ensure financial stability, so that the Club can continue to perform both on and off the football pitch.

“There is little more I can add at this juncture, only to reiterate we are supportive of the steps that have been taken and we hope to have the opportunity to continue our financial support for the Club under its new ownership, once determined.”

JUNE 19
Hicks and Gillett labelled “asset
strippers” by Liverpool MP Steve Rotherham

By Alan Weston - Liverpool Daily Post

The controversy over the American owners of Liverpool FC was raised in Parliament yesterday when they were labelled “asset strippers” in the House of Commons.

Walton’s new Labour MP, Steve Rotheram, used his maiden speech in the Commons to claim the actions of Tom Hicks and George Gillett threatened the club’s existence.

In a separate Commons motion, he has accused the pair of failing “to exercise responsible stewardship of the club”.

The Americans, who bought Liverpool FC in 2007, recently announced their intention to sell the club, which is £351m in debt.

It follows a period of crisis for LFC following a poor league performance, which culminated in the departure of manager Rafael Benitez.

Mr Rotheram, a former lord mayor, told MPs he was a “dyed-in-the-wool” Liverpool fan and an Anfield season ticket holder. But I would honestly say the same things if it was Everton FC that had been the victim of a leverage buyout that endangered its future survival and which has caused so many problems for my constituents living in close proximity to the football stadium.

“England’s most successful football club is slowly being drained by the greed of two American asset strippers and this is having a negative impact on regeneration projects for the whole area.

“Unfortunately the beautiful game does not always attract those with beautiful intentions.”

In an Early Day Motion tabled last week, Mr Rotheram expressed “dismay” at the Americans’ activities and their failure to be responsible stewards of LFC.

He also “regrets the failure to fulfil promises of a new stadium”.

In addition, the motion asked the house to support talks with supporters’ groups, and look to an early change of ownership.

Mr Rotheram, supported by fellow Merseyside MPs Alison McGovern, Maria Eagle, Dave Watts, Derek Twigg, and Bill Esterson, said: “I am a Reds fan but this was started by Peter Kilfoyle who is a Blue.

“This is not about Liverpool FC, or even the stadium. Both the clubs are in my Walton constituency and this is about the negative impact this impasse is having on certain areas of Liverpool.”

Mr Rotheram’s actions are the latest blow to Liverpool FC’s US owners, who have come under attack from an increasing number of high-profile figures associated with the club.

A host of Liverpool FC legends have condemned the Anfield reign of Hicks and Gillett and urged the Americans to sell the club.

Former players, including ex-captains Phil Thompson and Tommy Smith, admitted they were devastated by what had happened to Liverpool FC since Hicks and Gillett took over in 2007.

Previous owner David Moores admitted last month he “hugely regrets” selling to them and pleaded with Hicks and Gillett to stop “punishing” supporters.

Hicks’s response infuriated fans because he claimed the club was in better shape than three years ago.

Liverpool went up for sale last month, but Hicks has admitted it could be more than a year before a deal is complete.

Potential investors were put off by the sky-high asking price of £600m-£800m – three times what they paid to take control in February, 2007.

Hicks and Gillett plunged the club into £351m of debt, with annual interest repayments of £40m.

Broken promises include their vow to build a new stadium in Stanley Park and invest heavily in the playing squad.

JUNE 8
Liverpool FC to be taken
over by Sheikh Khalifa?

By Zaakir Hoosen - Bleacher Report

Could we see a possible takeover in the summer of struggling English powerhouse Liverpool FC? Well, according to latest reports surfacing, an Abu Dhabi billionaire might be on the cards for a comlplete takeover.

Nothing has been agreed upon or finalized, no press release or media report, so don't celebrate just yet.

Sheikh Khalifa bin Zayed bin Sultan Al Nahyan (pictured) is the current President of the United Arab Emirates and Emir (Ruler/ Leader) of Abu Dhabi. His one of the wealthiest Arab businessmen in the World. He is wealthier than his half-brother, Sheikh Mansour bin Zayed bin Sultan Al Nahyan who is the owner of Manchester City FC.

Sheikh Khalifa as his known is said to be the third wealthiest royal with his net-worth around $19 billion, he also has major interest in Abu Dhabi and UAE developments.

If he successfully takes over Liverpool, he will look to make major investments in the club and according to stats, with his wealth Liverpool could have more financial power than both Manchester City and Roman Abromovich's Chelsea.

With so much money been spent around in recent years on club takeovers and player transfers, this could be exactly what Liverpool need. And in terms of the club, it could be perfect as they hope and wish to keep their most prized assets, Fernando Torres and Steven Gerrard, at Anfield.

For the benefit of people who cannot read, no deal has been signed off as yet. The owners have to accept it.

Recently we also heard of a bid by a wealthy middle-eastern businessman said to also be from Abu Dhabi who prepared a multi-billion dollar bid for Manchester United but was unsuccessful as the Glazers turned it down.

JUNE 8
Tom Hicks deters two ‘perfect
fit’ offers for Liverpool

By Michael Owen - The Sport Review

Tom Hicks, who bought the Merseyside club along with fellow American tycoon George Gillett in 2007, placed an asking price on the club of around £800 million which has put off investors who would be a “perfect fit” for the club.

The news comes from sources at Barclays Capital, the firm charged with finding a buyer for the club, who are said to be becoming increasingly frustrated with Hicks.

Sources from the firm stated that they had attracted some “exciting investors” in the form of a consortium led by a prominent American businessman and an interested Middle Eastern bidder.

But the club’s high asking price has put the potential investors off making a bid for the debt-ridden Anfield club, claiming that they do not want to be held to ransom over the price.

“We have found more than one really good fit investors, who have the wealth not to worry about a few hundred million quid,” a source at Barclays Capital told The Daily Mirror.

“But they will not be held to ransom, because they know the asking price is unreasonable, and they simply don’t want to be taken for a ride, no matter how rich they are.”

The concerns will only add to the frustration felt by Liverpool supporters desperate for stability at the club following the ousting of manager Rafael Benítez, who is expected to be revealed as the Inter Milan manager later today.

The Anfield club are still searching for the man who will replace Benítez, but with the ownership issues remaining a major problem for the club, some of the shortlisted targets set by Kenny Dalglish and Christian Purslow may be put off by a move to the five-time European champions.

MAY 28
Tom Hicks’ stock is bankrupt
amongst Liverpool fans

Comment by David Prentice - Liverpool Echo

“Trust me,” said Tom this week, with all the sincerity of a used car salesman, before adding: “They should trust people’s intent.”

The problem is, Tom, Liverpool fans already did. Which is why their trust has been exhausted. Utterly.

Tom Hicks and George Gillett have made their intentions for Liverpool Football Club perfectly clear during their three year tenure as Reds’ co-owners.

That is, to make money. Lots of it. To squeeze Liverpool dry.

It’s an intention Hicks bragged about to the Wall Street Journal only two weeks ago when he crowed: “Liverpool will be the most profitable investment I have ever made.”

Which is why, forgive us Tom, Liverpool fans find it so hard to trust you.

The Texan can sport as many club crests on his cowboy boots as he likes, position as many LFC mugs at his fireside and wave as many scarves as he can afford – which is plenty – but will always come from a completely different mindset to a real Liverpool fan.

Football fans and businessmen have a very different perspective on football clubs.

For a fan, Liverpool is not a brand, it’s a way of life.

Fans do invest significant sums of money into following their idols, but that pales into insignificance compared to the emotional investment they make.

Liverpool Football Club dominates lives.

It makes people laugh and cry, it makes people jump for joy and kick the cat.

It’s part of the community, a symbol of civic pride – a discussion point at teatime over a pint, an excuse to sit down and replay worn out video tapes over and over again.

As one of its greatest ever custodians said: it exists to make the people happy.

But Tom Hicks sees Liverpool as a vehicle to make money.

Which is why Reds fans will never really trust you, Tom.

That and the fact you tell lies.

In fairness it was actually George Gillett who uttered the words “This is not a takeover like the Glazer deal at Manchester United. There is no debt involved” at their introductory press conference.

But Hicks was obviously in on the business model.

He, after all, was the leveraged buy-out expert.

And Tom and George came together as a package – like Del Boy and Rodney – only not as engaging.

“Just relax and let us do what’s right,” added Tom.

Reds fans did that three years ago, Tom. Look where it’s got them.

MAY 27
Hicks: Plenty of interested parties

By Carl Markham - Press Association Sport

Liverpool co-owner Tom Hicks claims there is a large number of "interested buyers" in the club he and George Gillett put up for sale last month.

Having leveraged huge debt on the club - parent company Kop Holdings' were £351million in the red last summer with annual loan repayments of £40million - the Americans decided to end their tumultuous reign at Anfield.

Liverpool are up for sale with an asking price of between £600million to £800million.

Those figures have hardly had investors knocking down the door of chairman Martin Broughton, who was appointed to oversee the process.

However, Hicks, who has suggested it could take between 12 and 18 months to sell the club, still believes there are plenty of candidates to take over.

"Liverpool has a really big universe of interested buyers," said the Texan.

"There are a number of wealthy people all over the world, particularly in the Middle East and Asia, who are enormous Liverpool fans."

The 64-year-old admits he has had enough of owning clubs and sports franchises and is trying now to sell all of his interests.

His Texas Rangers baseball side filed for bankruptcy on Monday some 13 months after its parent company, HSG Sports Group, defaulted on £360million of debt.

The Dallas Stars ice hockey franchise is also being sold. Liverpool will be the last of his three main sports investments to be offloaded.

And Hicks, who has been the target of a sustained and often vitriolic fans' campaign to sell up at Anfield, admits the high-profile nature of ownership had taken its toll.

"Sports has never been my primary business," Hicks told Bloomberg BusinessWeek.

"We are systematically selling our sports assets to focus on our core businesses like private equity and real estate.

"The lack of privacy in sports is something that my family and I aren't willing to undertake any longer.

"We'll always be big fans but we want our privacy back."

MAY 27
Dalglish: Reds will ride the storm

Irish Examiner

Liverpool legend Kenny Dalglish insists the club will not go backwards despite their current ownership issues and speculation about the futures of manager Rafael Benitez and star players Fernando Torres and Steven Gerrard.

Former chairman David Moores yesterday gave a full and frank account of his reasons for selling to American owners Tom Hicks and George Gillett in 2007.

After a tumultuous three-year reign the pair officially put the club, whose parent company Kop Holdings have debts of £351m with interest payments of £40m a year, up for sale last month.

That has led to increased instability off the pitch with constant conjecture about whether the manager and players will remain at Anfield.

Torres did little to quell that speculation yesterday when he side-stepped questions about his future, while Jose Mourinho, whose appointment as Real Madrid boss appears imminent, has spoken of his admiration for Gerrard.

However, Dalglish said the club was bigger than any individual.

“Liverpool FC is much more important than any one individual – it always has been and always will be,” said the Reds former player and manager, who now has an ambassadorial role with the club’s academy.

“It will move forwards and move upwards.

“It is not the greatest time in the club’s history at this time but I don’t think they will start to go backwards.”

Dalglish, voted Liverpool’s greatest player, also said he had some sympathy with Moores for reacting to the criticism aimed at him for selling to the Americans.

“David has got his own opinions and wanted to get something off his chest but everyone knows where David’s heart lies,” Dalglish told Sky Sports News.

Two other Liverpool greats, Alan Kennedy and John Aldridge, have joined the growing calls for Hicks and Gillett to engineer a swift sale.

Kennedy, a two-time European Cup winner, said the current state of uncertainty had affected the team this season, which saw Liverpool finish seventh – their worst league placing for 11 years.

“We have to move on. We are stagnating and it has shown in the performances of the players, who have been disappointing as well,” said the 55-year-old.

Former striker Aldridge was more outspoken, criticising Hicks and Gillett for loading huge debts on the club and dismissing the former’s claims that Liverpool were in a better position now than they were three years ago.

“Any club that is losing £110,000 a day (on loan repayments) is in big trouble - whether they are Liverpool or not,” he said.

“We are in a massive mess. It is ridiculous to say we are in a good situation - absolutely ludicrous.”

Aldridge does take some comfort from the fact that the off-field problems may result in increased stability in the dressing room after speculation about Benitez.

“The manager’s future looks more tenable at the moment,” he added.

“There is no stability at the club and to lose the manager as well would put them in disarray.

“Would the two Americans really replace Rafael Benitez considering they don’t know an awful lot about football?”

MAY 26
Hicks: Top talent will stay
Reds co-owner believes a takeover
will be completed by year end

By Chris Burton - Sky Sports

Liverpool co-owner Tom Hicks insists the club will not be selling the likes of Steven Gerrard and Fernando Torres this summer.

A disappointing showing in the 2009/10 campaign has left the red half of Merseyside fuming, with many feeling the current American owners have failed to back manager Rafa Benitez in the transfer market.

Spiralling debts have also caused concern, with it suggested that sales may be necessary this year to help balance the books.

Amid mounting criticism, Hicks and business partner George Gillett have put the club up for sale, with former owner David Moores calling for the pair to sell up quickly on Wednesday.

Hicks, though, is adamant that Liverpool are in better financial health than is often reported and claims there is no chance of them offloading their star men over the coming months.

"We have no intention of selling any of our top players," he told Sky Sports News.

"We have a substantial transfer budget in place. There is so much misinformation about transfer spending - it has more then doubled under the ownership of George and myself over the past three years.

"We will make a considerable investment this summer, but it is really about getting the right players."

Better off
Hicks has also responded to the calls for a sale to be pushed through by revealing that he expects a takeover to be completed by the end of 2010.

He claims there is no rush for a deal to be put in place, though, with it imperative that Liverpool find the right buyer to help take the club forward.

"We will sell the club but it is about selling to the right group, at the right price, at the right time and in the right way," said Hicks.

"We will do it in a thoughtful way and try to find the right man for Liverpool Football Club. We hope it will be done by the end of the calendar year, but I don't anticipate that it would be before the start of the next season.

"I think between £600-800million is a realistic value range, but the market is the market. We are more concerned about finding the right next owner, someone who can make the investment in the club, get the stadium built and let Liverpool Football Club be the best club in the world.

"The stadium is fully designed now and the financing markets are backed, so the change of ownership will be able to have the stadium built."

He added: "There has been so much misinformation put out by people who have their own agendas and it's unfortunate, but that's just the way it is. The truth is that the club is a lot better off than it was three years ago.

"We are all disappointed with where we finished this year, but people forget we almost won the Premier League last year.

"We had injuries and we had players who performed below their level of expectation. Hopefully we will get that fixed in time for the new season."

MAY 26
Former owner David Moores
calls for Liverpool sale

BBC Sport Online

Former owner David Moores has admitted he "hugely regrets" selling Liverpool to George Gillett and Tom Hicks and has called on them to sell up.

Moores sold the club to the American duo in 2007 but their reign has been controversial, with concerns mounting about the Premier League outfit's debt.

In a letter to the Times newspaper, Moores insisted he acted with the "very best interests of the club at heart".

He wants the pair to leave and added: "Don't punish the supporters any more."

Gillett and Hicks have had a turbulent spell in charge since taking over the club from Moores in a deal worth about £200m.

Their reign has proved unpopular with supporters, who regularly voice their dissatisfaction at the level of debt taken on by the club after the buy-out.

Liverpool are currently £351.4m in debt and the club's finances will not be helped by the failure to qualify for the lucrative Champions League next season. There are also issues over funding for a new stadium in Stanley Park as well as providing a budget for manager Rafael Benitez to operate with in the transfer market.

Gillett and Hicks announced in April that they intend to sell the club and Moores' wide-ranging 3,155-word letter, published the day after the five-year anniversary of Liverpool's stunning Champions League final victory over AC Milan in Istanbul, will place further pressure on Liverpool's co-owners to find a buyer.

In it, he addresses several issues, including the reasons for his sale, the checks the club did on Gillett and Hicks and his opinions on their tenure.

Moores, whose fortune derived from his family's Littlewoods pools and shopping empire, said his departure was in the pipeline following the hugely successful Euro 96 tournament in England with "the influx of more and more overseas superstars on superstar wages".

He stated: "I was aware the game was changing beyond all recognition and deeply worried, too, about my ability to continue underwriting the financial side."

Moores remained in charge but the search for a new owner started in the wake of Russian oligarch Roman Abramovich's takeover of Chelsea.

"The Abramovich era was upon us and I knew that I could never compete," added Moores.

He believes the hunt was conducted in the proper way and added: "So sincere was our commitment to finding that person or company, that we invested huge sums and massive amounts of time investigating potential investors, only to conclude that they were not the right people for Liverpool.

"It would have been easier, I assure you, just to take the money, cross our fingers tight and hope things worked out - but we dug deep into every file and asked all the tough questions, knowing the answers might scupper any deal."

Moores said the process of looking into the background of Hicks and Gillett was detailed but there was an "element of the process I accept we could have handled better".

"We had looked into George Gillett's affairs in detail and he came up to scratch," he said. "To a great extent, we took Tom Hicks on trust, on George's say-so.

"Could we have done more? Probably - though under those circumstances, in that time-frame, probably not.

"We did our due diligence on Messrs Gillett and Hicks and if we're guilty of anything it is that, after four years searching, we may have been too keen, too ready to hear the good news that George and Tom had passed their tests."

Liverpool ended the season in a lowly seventh position in the Premier League after exiting the Champions League in the group stages, and stories linking Benitez as well as star players Steven Gerrard and Fernando Torres with moves away from the club have started to circulate.

And with the future ownership of Liverpool also the subject of speculation, Moores - who is still an honorary life president of the club despite resigning from the board in June 2009 - has decided now is the time to speak out.

"It has been hard for me, sitting mute on the sidelines as the club I love suffers one blow after another," he concluded in his letter.

"Since resigning from the board I have not set foot inside Anfield - and it hurts. I hugely regret selling the club to George Gillett and Tom Hicks. I believe that, at best, they have bitten off much more than they can chew.

"I call upon them now to stand back, accept their limitations as joint owners, acknowledge their role in the club's current demise, and stand aside, with dignity, to allow someone else to take up the challenge. Don't punish the club's supporters any more - God knows they've taken enough."

In the letter, Moores said "significant shareholders like Granada and Steve Morgan were insistent the board of LFC should accept the Gillett and Hicks offer and left me in no doubt about my legal duty to accept the offer".

However, Morgan, who is now the owner of Wolves, denied that was the case.

He told BBC Radio Merseyside: "I haven't read the letter but I would disagree with that statement.

"Perhaps if he had done some due diligence at the time then it wouldn't have happened but we are where we are.

"I agree with the sentiment that something drastic needs to happen at Liverpool to get it out of the mess it's currently in."

Liverpool Supporters' Club chairman Richard Pedder believes the letter will not have an affect on the sale of the club.

He told BBC Radio Merseyside: "It's other pressures from other areas that will force them to do something.

"The banks are the big issue with them. They have got to pay that money over. That's what they are going to be looking at, if they can't raise the money then hopefully they will sell."

MAY 21
Reds have what it takes
to become great club again

Comment by Dominic King - Liverpool Echo

As Liverpool head into this summer of great uncertainty, there is only one question supporters wish to know the answer to – how do we get out of this place?

Caught in a state of flux with little sign of the misery ending, fans everywhere are dreaming of the day when they hear the news that Tom Hicks and George Gillett’s reign as owners of Liverpool has ended.

At present, that moment is far from imminent.

Managing director Christian Purslow has failed to obtain investment since he arrived last June, while Barclays Capital – recruited by Hicks and Gillett to do the same thing in April – are searching for interested parties.

“I want Liverpool to be the number one club in the world,” Reds legend Robbie Fowler said earlier this week, articulating the thoughts of the Kop.

“The current owners have put the club up for sale and for the life of me I can’t think why there are no takers just yet.”

He is not the only one. Surely, though, the search will have a successful conclusion?

Liverpool might be in the doldrums but it is impossible to dispute that they boast all the key components to become one of the leading lights in world football once again.

Consider them for yourself: an enormous, loyal fan base around the world; a tradition and heritage that few can dream of getting close to and a commercial department which is flourishing by the day, generating millions and millions of pounds.

If Liverpool were in terminal decline, they would not have been able to negotiate a shirt sponsorship deal that has the potential to yield £81m over four years and theirs would not be the best selling shirt that Adidas makes ahead of Real Madrid, Chelsea and AC Milan.

Furthermore, Manchester United might be perceived as the club that best maximises its earning potential but it is significant Liverpool actually have more square feet of retailing space in this city (35,000) than United do in Manchester – more space equals more cash.

Once Liverpool eventually move into their new home in Stanley Park, club officials are adamant the Reds will take off; it will, quite simply, be the route to financial nirvana and, perhaps, it is why Hicks, especially, seems so determined to hang on in.

He, remember, emailed a Liverpool supporter in January, days after his son, Tom junior, had sent a foul-mouthed reply to another fan and said that moving into a new stadium would be “the game-changer” for the club.

That, however, does not alter the way he or his business partner, Gillett, are perceived by the masses.

They have been “custodians” during the most turbulent spell in Liverpool’s history and no matter what they do in the future, they will forever be reviled

“The club has been systematically raped by its owners,” said Dr Rogan Taylor, director of the Football Industry Group at Liverpool University and a life-long Red who was founder of the supporters’ initiative ShareLiverpoolFC.

“The money that is going from Kop Holdings to the Cayman Islands is quite staggering and the fact almost £50m has been spent on a new stadium is absolutely mind-boggling.

“When ShareLiverpool and Spirit Of Shankly emerged, a lot of people had sussed out that the club was in the wrong hands; they realised it was like peeling the layers of an onion back and finding a rotten stone. The situation is dire.”

His thoughts on how that ‘dire’ situation is reversed are simple; Taylor is adamant there is an opportunity for fans to make a difference and he believes the situation in which the club is embroiled could, in some ways, prove advantageous.

“The announcement that the club was officially for sale recently caused mild amusement, as the club has been for sale ever since Hicks and Gillett came here in February 2007 and it is not going to be easy to recover,” said Taylor.

“It may not happen soon but supporters’ organisations have realised that the only way to make a difference now in affairs is to take equity and buy shares. That is what ShareLiverpool is seeking to do.

“The Hicks and Gillett business model is collapsing before our eyes. I’m sure the banks are deeply unhappy that they can’t force the club into administration. We just wish there was a way to change it.

“People may think that we have gone quiet but what can you do if you can’t engage with someone? Very little is the answer. Little by little we are trying but the process is very expensive.”

Which is why, other than a fleeting dalliance with the Rhone Group in March, Hicks and Gillett have not looked remotely like selling since they came close to making a £50m profit on their investment in March 2008 when Dubai International Capital called.

There may be groups who are interested but financial experts have found Hicks’ asking price of £800m laughable for Liverpool.

Aside from that, there is no guarantee any new owners will simply be able to plough an endless stream of cash into the club.

“The assumption many people have been making is that because we are one of the eight famous (club) badges in the world, surely someone will want to come and buy Liverpool,” said Taylor.

“The problem is the money that is now involved.

“To write a cheque for £50m and not be bothered about it, you have to be a billionaire.

“To write a cheque for £400m and not be bothered about it, you have to be a multi-billionaire – and how many of them are there?

“Fans are waking up to the idea that a saviour isn’t going to cross the Hindu kush to oust Hicks and Gillett.

“As for these private equity firms, their purpose is the same – they want a substantial return for their investment. But there is an old Chinese saying that crisis always presents opportunity and that is why we are hoping to go forward in partnership with Liverpool fans all over the world.”

MAY 20
How Liverpool FC fell from dreams
of glory into a financial crisis

By Dominic King - Liverpool Echo

Mighty Liverpool FC faces the most crucial summer in its history, saddled by debts costing £40m a year and with its warring co-owners having put it up for sale. The Echo’s Liverpool writer Dominic King examines how the crisis began - and has since unfolded.

This will be Anfield’s penultimate season but while hearts are understandably heavy at the prospect of leaving the place that has been home for 108 years, the pain is assuaged by the sight of the new, sparkling stadium which is under construction in Stanley Park.

On the pitch, redevelopment has also been smooth.

As he finalises preparations for the opening game against Aston Villa, Rafa Benitez – having worked in tandem with his board to sign David Silva, Gary Cahill, Oscar Cardozo and Philip Lahm – is in a positive frame of mind.

Though he is playing down his side’s title chances, Benitez has the air of a man who is expecting Liverpool to spring a surprise; he is well aware of the expectation among supporters but the glint in his eye suggests that expectation will not be a burden.

Liverpool, you see, have made big strides since being taken over in February 2007 and Benitez – who had urged the new owners to follow Real Madrid’s example to make the Reds one of the world’s most successful, profitable clubs – can see things falling into place.

Sounds good, doesn’t it?

It’s the kind of scenario many supporters envisaged happening once former chairman David Moores realised the only way the Reds would be able to reclaim their place at the summit of English football was with massive financial investment.

How, then, have Liverpool found themselves entering the most crucial summer in their history on the lowest possible ebb? Thoughts of Benitez embarking on a spree to bring in those aforementioned players are fanciful, while dreams of winning the title are distant.

It is a miserable state of affairs, one that shows no sign of being remedied any time soon; supporters, not surprisingly, are furious, inevitably wondering what would have happened had Moores decided to pursue another option rather than accept the Yankee dollar.

There was always going to come a time when investment came onto Liverpool’s agenda but the need became more pressing the moment Roman Abramovich walked into Stamford Bridge in June 2003 and altered the shape of the Premier League.

With Manchester United having dominated the previous decade, building up their finances by capitalising on their success, Liverpool had to do something dramatic just to keep pace with their rivals, let alone over take them.

“The buck stops here,” Moores said at a tempestuous AGM in January 2004. “If it gets any worse I will have to look at my own position, but I hope it does not come to that. People are not happy. What has been happening is not good enough for our club.”

That was the sign for Moores and chief executive Rick Parry to step up the search for potential buyers. Talks were held with both Thailand’s Prime Minister Thaksin Shinawatra (in May 2004) and the American mogul Robert Kraft (October 2005).

The closest Moores came during that period to selling, though, was to Liverpool’s then third largest shareholder, Steve Morgan. The Garston-born Redrow Homes founder and an arch critic of Moores, was desperate to make significant investment, promising to build a new ground. But a deal could never be done.

He did get as far as reaching a personal agreement with Moores but after entering into a period of due diligence, he noticed the figures never added up and re-adjusted his offer. Moores failed to accept and things then broke down.

“My bid was pre-Istanbul, pre-Rafa Benitez settling into the club and pre-the Sky TV deal,” he reflected shortly after. “If I’d had a crystal ball and seen all these things in advance, maybe I should have done the deal. Hindsight is a wonderful thing.

“If you look at the arithmetic, my bid was not very much different to the Dubai (Dubai International Capital – DIC) bid. I was going to build a stadium and take on the debt. I wanted to leave the fans owning 40 per cent. But the DIC bid will be for a full 100 per cent of shares.”

DIC had made their intentions clear; they were going to invest heavily in the squad, build the new stadium and wipe out the then £80m debt; had they come in, the scene painted at the top of the page might have been reality.

For all intents and purposes, it appeared Liverpool would come under Arab ownership and when the club entered an exclusivity agreement, it looked plain sailing. Morgan, for one, went on record saying he envisaged the deal being done by the middle of January, 2007.

Yet when things appeared to be going smoothly, the wheels came off. DIC were furious after it emerged that Moores and Parry had re-entered talks with George Gillett, the American who had first expressed his interest in investing in November 2006.

Parry and Moores had felt uncomfortable with the way DIC conducted themselves at certain points, while they were also anxious at how long it took to conduct due diligence; the deal was called off in acrimony days before DIC were expected to be unveiled.

“The overriding message is: Don’t worry,” Parry said on the morning of February 1, 2007. “You can be certain (Moores) has done his homework carefully and will make the decision in the best interests of the club.”

How horribly misguided those words sound now. The collapse, of course, paved the way for Gillett to re-enter the picture and once he had brought Tom Hicks on board – Gillett did not have sufficient finance to invest in the Reds on his own – DIC were out of the picture.

DIC were baffled and angry and a source was quoted in the ECHO saying: “If the fans want to know what has happened, David Moores suffered what I can only describe as a mental aberration just when the deal was about to be reached.”

Moores agonised over the decision and is understood to now be distraught at how things have turned out. But it is impossible to escape the view that Liverpool married in haste and are now repenting at leisure; significantly, there is no sympathy for him on the Kop.

If Moores and Parry had their time again, they would not have entertained the Americans but Gillett and Hicks’ offer of £5,000 per share (enabling Moores to make an £88m profit) ultimately proved decisive.

From that point, Liverpool Football Club would never be the same again; promises have been blatantly broken since they waltzed in, the club has been saddled with a mountain of debt and a sense of chaos reigns. A once-proud institution and one of the world’s most famous and decorated clubs now resembles a soap opera in so many ways.

While the club has spent several millions revamping parts of Stanley Park, the “shovel in the ground” Gillett promised is still not planted, while civil war has raged behind the scenes for years.

That, of course, all started when Hicks and Gillett held talks with Jurgen Klinsmann about succeeding Benitez and the atmosphere has been inflamed over the past 12 months by the withholding of funds in successive transfer windows.

It is impossible to say what would have happened had DIC taken over in 2007 or again in March 2008, when they offered Hicks and Gillett an opportunity to make a £25m profit, but it is doubtful Liverpool’s position would be any worse.

Unfortunately, the picture painted at the top of this piece is as far away as ever; funds are limited, uncertainty reigns and there is little buzz around the club.

“Selling to Hicks and Gillett is probably the worst decision that anyone connected with Liverpool FC has ever made,” Les Lawson, spokesman for the official LFC Supporters Association, declared.

“They might have said all the right things when they came in but that’s what they had to do“ The only way we will move forward is when they are gone.”

MAY 15
Premier League chief backs Liverpool's
Spirit of Shankly campaign

By David Randles - Liverpool Echo

Liverpool fans group Spirit of Shankly claim the Premier League has given its blessing to Liverpool fans to continue their campaign against the club’s owners, Tom Hicks and George Gillett.

Members of SOS, the Liverpool supporters union, met with Premier League chief executive Richard Scudamore at the league’s Gloucester Place headquarters in London yesterday to air their concerns about the way in which the club is being run.

And while the Premier League reportedly backed the ongoing protests, they claim the debts amassed by Hicks and Gillett are currently sustainable.

Liverpool is currently £237million in the red. Concerns grew stronger recently with the revelation the Anfield club registered record annual losses of £55m for the year ending July 2009 and is paying £110,000 a day in interest payments.

SOS spokesman, Jay McKenna, said: “Richard Scudamore suggested we keep on campaigning. He understood the fans are unhappy and want some answers. That was a positive to come from the meeting.”

The four-man delegation from the SOS executive committee met with Scudamore and the Premier League’s head of communications, Dan Johnson, and head of supporter relations, Cathy Long.

Although the Premier League admitted there is little they can do at present to help worried fans, Scudamore revealed steps have been taken to encourage responsible ownership of clubs in the future.

Added McKenna: “They were quite receptive to our concerns but it was clear that, as things stand, the Premier League’s powers are limited.

“The fit and proper persons test they apply to prospective owners isn’t subjective. What Tom Hicks and George Gillett are like as people doesn’t come into it.

“But they told us they have looked into some of the issues affecting, not only Liverpool, but other clubs in the league. They have come up with proposals to change the fit and proper persons test, which are to be heard at the league’s summer AGM.

“We told them we see the level of debt at the club as unsustainable. The Premier League response was that the future of the club is currently safe and they’re satisfied that Liverpool can fulfil its obligations to the league.

“That’s based on the current value of the club and the fact that, although we’re losing money, we are sustainable by the value of our assets such as players who can be sold down the line. This idea of sustainability it somewhat different from ours.”

Hicks and Gillett officially put Liverpool up for sale last month with British Airways chairman Martin Broughton being drafted in to help speed up the process.

While SOS are committed to the removal of the Americans they also requested guarantees from the Premier League that a similar situation will not be allowed to occur with new owners or investors.

“We want to make sure this situation wouldn’t happen again,” explained McKenna. “The Premier League have tried to give us assurances. But at the moment club chairmen have to agree to the changes the league would like to implement.

“It’s dependent on those who own football clubs to agree to the changes or not.

“Our plans now are to keep up the pressure on Hicks and Gillett to make sure we are listened to. We also want to make sure the Premier League take action to prevent this happening again.”

MAY 14
Anfield’s grim truth is revealed
by Liverpool FC’s latest accounts

Liverpool Echo

A week ago today, Liverpool’s annual accounts were published, giving rise to outrage and concern from deeply worried supporters. Here the ECHO’S Liverpool writer Dominic King delves further into a document that signals the biggest financial crisis in the Reds history - and highlights some stark truths behind the grim figures...

Liverpool's recently published annual financial report is crammed full of many startling revelations and, on page two of the dossier, there is an especially significant sentence.

“There are a number of potential risks and uncertainties, which could have a material impact on the Group’s long term performance,” it reads.

“The Group derives the bulk of its income from football activities and related merchandising.”

In the most simplistic terms, it means Liverpool being successful on the pitch will see the club’s finances in a better light. Yet, worryingly, the campaign which saw the Reds secure some of their best results and performances under Rafa Benitez led to a record deficit.

No wonder, then, alarm bells have started ringing loudly among fans.

Despite finishing second in the Premier League, reaching the Champions League’s last eight and bringing in a raft of television money, Kop Football (Holdings) Limited still posted a £52.8m loss.

Interest payments have soared to more than £40m from £36.5m and, it reveals, creditors are owed a staggering combined total of £472.5m for the year ending July 31, 2009 - up from £421.6m the previous year.

Aside from that the report says “the Club invested a further £22.3m in the planning, design and enabling works of its new stadium in 2008/09. The directors are confident that a new stadium will be funded and completed and are fully committed to the project.”

That exposure, in particular, has enraged supporters. Stanley Park looks just as it did before Tom Hicks and George Gillett took ownership of the club yet in the last two financial years £45.5m has been spent on the new ground.

Many will wonder where that money has gone, given there has been no sign of that “spade in the ground”; that, according to club sources, it has been spent on myriad aspects such as architects, planning and preparatory fees is unlikely to placate critics.

When you then factor in the multi-million pound pay-off former chief executive Rick Parry received, along with termination payments to 20 members of the Academy staff, it is clear to see why the perception is that money is being wasted.

It’s true that Liverpool’s commercial department is flourishing and expanding at a rate of knots but, for many, that is no solace; this is the biggest summer the club has faced in its history, both on and off the field - and concerns on the Kop run deep.

With more and more clubs struggling financially, it has been wondered if administration will be forced upon Liverpool but – according to James Dow of Daresbury-based Corporate Financial Advisors Dow, Schofield and Watts – that is unlikely to be the case.

“It’s fair to say if Liverpool had been a ‘normal’ business, it would not have survived as long as it has done,” said Dow, who specialises in football finance.

“The only reason I suspect it has, is that the bank have personal guarantees from Mr Hicks and Mr Gillett.

“Usually when you see such figures, you would be expecting the receivers to be called in. The thing that tipped Portsmouth over the edge was the fact that the Inland Revenue demanded the money they were owed and Portsmouth could not pay.

“You then look at Leeds, which is a comparable situation.

“They tried to sell off their assets to bring their debt down but it did not help. They were what is known as a distressed vendor and that never allows assets to reach their full value.

James McKenna, spokesman for the Spirit of Shankly fans group which was today meeting Premier League chiefs in London to demand tighter regulations to stop problems like Liverpool’s happening again or elsewhere said: “There has always been a feeling in the past that even when things are bad, we would always get out of it because we are Liverpool,”

“We’ve got the history, reputation and you always felt we would win things.

“But that isn’t going to be enough now with the pitfalls that lie ahead.

“All that history is in jeopardy now because of the debt that has been saddled on the club. I’m very worried about the future. The debt has increased, the levels of interest have increased.

“It is hard to see how it is going to get better. Those figures came after a season when we had done really well in the Premier League and been relatively successful in the Champions League, so what does it mean for next year’s figures?

“The concern is that we are going to end up in the same situation as Portsmouth or Leeds. The interest payments are quite startling - £110,000 a day is being squandered, which is a massive figure on its own.

“But to put it another way, as someone said to me, it is the price of a match ticket (£38) every 30 seconds. It shows the depths to which we have plunged. Some of the revelations in the accounts were really quite staggering.”

Until Hicks and Gillett are gone, however, it is doubtful the situation will change; Anfield will continue to be gripped by talk of re-financing deals, investors and levels of debt. But is it really that simple?

As Martin Brunskill, spokesman for the Football Supporters Federation, points out, there is no guarantee a sale of the club will lead to nirvana; he also says the fact Liverpool are in such a parlous financial position illustrates that no club is safe in this climate.

“Football supporters have woken up to the issues of ownership and debt,” he said.

“When the highest profile clubs like Liverpool and Manchester United are involved, it shows that no clubs are averse to such threats.

“Before the American owners came in, everybody had a perception that Liverpool was a well run club, with little debt and in a healthy position but it is alarming to see that now the opposite is true.

“Owners are coming into football clubs thinking that buying them is a licence to print money but there is no guarantee. It is very worrying for Liverpool fans and for the long-term future of the game.”

Peter Furmedge, a qualified accountant who has been closely involved with both Share Liverpool and Spirit of Shankly, added: “Basically the figures we saw were nothing unexpected.

“We have been following developments over the last year and while the figures were probably shocking to those who aren’t financially trained, we felt they were inevitable.

“The situation that is happening with Liverpool now is exactly what happened when Tom Hicks was involved with Corinthians. It took six years after he had gone for the levels of debt to be unravelled.

“The interest Liverpool are paying now is incredible and the £145m that is owed to their Cayman Islands company will end up being doubled to £290m in six years time.

“It’s a terrible situation.”

“Would administration ever be something for Liverpool? Probably not. Any business that goes into administration has its reputation tarnished and I don’t think the banks would ever allow that to happen to Liverpool.

“But there is no doubt the major shareholders (Hicks and Gillett) will be coming under serious pressure to get themselves sorted out as you can’t keep on running up figures like the ones that have just been published. They are just impractical.”

Liverpool’s current debt stands at £237m and unsuccessful attempts have been made by Managing Director Christian Purslow to find an investor to ease the burden – the closest he has come so far was with the New York-based private equity firm, The Rhone Group.

Thor Zakariassen ©