MARCH 31
Reds need cash to compete

Part two of the ECHO Sport series examining the financial state of Liverpool Football Club season 2004/05

By David Prentice - Liverpool Echo

It has been a long, often turbulent year for Liverpool Football Club with as much drama happening off the pitch as there has been on it.

But today the ECHO reveals that it could yet end in smiles for everyone at Anfield, with the hopes of securing major new investment far from dead.

Despite the first anniversary of the hunt for new backers arriving last week, the club has by no means given up hope of doing a deal which could see millions of pounds in new money pumped into Anfield.

There are at least two major parties talking to the club about a potential investment deal. While agreement is some way off and by no means certain to happen, there could yet be a positive announcement to silence the doubters and ease concerns of supporters.

The parties are said to be 'serious players of both wealth and repute' and direct dialogue is known to be ongoing.

If investment comes from either it will almost certainly herald a new era at Anfield, with chairman David Moores likely to take on a lesser role or possibly moving out completely after 15 years in ultimate control.

If no deal ensues, senior figures at Anfield are happy the club will not lurch into a sudden financial crisis but will continue on under Moores and chief executive Rick Parry and consider other strategies for the immediate future.

The club's position would be reviewed some time during the close season to find ways of adding to the the money already given to Benitez to build the team he wants.

The club and Benitez remain adamant it wants to build that side around skipper Steven Gerrard despite persisitent rumours about his future - many clearly designed to try and lure him away from Anfield.

His revelation in the ECHO last week that he has not given promises to other clubs gave massive reassurance to fans who worship their world-class skipper.

Former Redrow tycoon Steve Morgan is not one of the two parties currently in discussions with Liverpool.

Morgan came close to doing a deal to take over at Anfield last year but withdrew his final offer after being rebuffed in December.

He had altered the terms of his bid following the due diligence process - a series of detailed financial checks carried out prior to any investment - claiming more money than he expected would be needed from him to pay for the rising costs of the stadium.

His pull-out followed a second lively annual meeting in December at which Morgan again publicly called upon the Anfield board and Moores to allow him in.

Parry said at December's AGM - the second within a year at which Liverpool's off field ownership issues were laid bare - that the investment issue needed to be brought to a conclusion soon.

So far though, there has been no announcement about new backers and the club is still working behind the scenes and declining to comment until it feels the time is right.

The pressing priority for Liverpool, though, is to see an end to the delay over grant funding for its planned new stadium in Stanley Park.

The Anfield board are baffled and increasingly concerned at delays in the North West Development Agency, the body which distributes government funding for redevelopment, awarding it an £11m grant to regenerate the park plus surrounding areas in Anfield.

NWDA chairman Bryan Gray is insisting the grant won't be given unless a groundshare plan is resurrected.

Walton MP Peter Kilfoyle has led a chorus of complaints over the NWDA man's demands, which fly in the face of wishes of fans from both Goodison and Anfield.

Sports Minister Richard Caborn has already declared ground-sharing a dead issue and Kilfoyle has insisted Liverpool are being held to ransom after years of careful planning and consultation.

The club is currently facing a bill of £750k a month for the delays, with construction costs rising at one per cent a month - thanks in part to the new found confidence in Liverpool and the Capital of Culture award making it a more attractive propositon to developers.

Liverpool are understandably anxious for the grant to be given and feel they are being unfairly treated - given neighbours Everton were offered major public funding several years ago with their plans to build a new home at Kings Dock, plans which ultimately came to nothing.

But they will only comment publicly and in detail once discussions with the two parties have reached a conclusion.

And there may be nothing of substance said publicly until the season has ended - despite all the speculation, the bids, the claims and the rumours which have surrounded Liverpool for the past 12 months.

MARCH 30
Reds still waiting for right time to cash in

Part one of a special two part series examining the financial state of Liverpool Football Club

By David Prentice - Liverpool Echo

On the football pitch, Liverpool Football Club took a significant step towards claiming a £20m Champions League cash prize last week, with a famous derby triumph.

Off it, despite tireless efforts, the Reds are seemingly no closer to announcing an equally important investment.

Exactly a year prior to the date of the Anfield derby triumph, Liverpool hired a firm of financial advisors to flush out potential investors in the club.

So far the flushing process has proved more effective than the depositing.

Last spring directors spent hours in meaningful, but ultimately fruitless, talks with Thai Prime Minister Thaksin Shinawatra.

Advances from Hollywood based film producer Mike Jefferies and his L4 group were politely but firmly rebuffed, while building contractor and lifelong Reds fan Steve Morgan has presented investment packages on four separate occasions - and been told each time his offers were not good enough.

And during that timescale the club has seen a £3.6m profit nosedive into a £21.9m loss.

Much of that dramatic turn-around came on the back of a year without Champions League football, and the cost of parting company with the previous managerial team.

A march to the quarter-finals of the Champions League this season - and possibly beyond - is certain to turn that figure around.

But by how much is unclear, and Liverpool still have four points to make up on Everton. Liverpool Football Club still needs significant investment - and urgently..

The proposed new stadium has already soared from a projected cost of £80m, when it was first presented to a Liverpool AGM in 2003, to £115m in December 2004. Now that figure has swelled again, to more than £120m.

The longer the delays, the greater the financial burden on the club.

And that is just off the pitch. On it, since they claimed the first league title of the 1990s, the Reds have gathered an impressive collection of knockout trophies - the FA Cup twice, the UEFA Cup and the League Cup three times - but the prize which the club most covets, once claimed as its raison d'etre, has consistently eluded them.

They ended the previous season 30 points behind champions Arsenal.

Since then they have secured the services of one of the brightest, most respected managers in European football - but still look likely to end this current campaign a similar distance behind the latest champions elect, Chelsea.

Clearly even more funds are still required to enable Benitez to fashion his own squad - and Liverpool do not want to even countenance the sale of Steven Gerrard to finance that rebuilding.

Sponsorship opportunities pose few problems.

Carslberg, the club's official sponsors, are currently in the final year of their contract - but negotiations are ongoing about the association continuing.

Carlsberg have been club sponsors now since 1992, enjoying one of the longest and most high profile part-nerships in the game.

Outside investment seems the only likely source of significant further income, but the Reds seem adamant that they will not act until they are convinced they have secured the right package.

"The board of Liverpool FC confirms it is continuing discussions with a number of parties regarding a potential investment of new funds into the club," said chief executive Rick Parry three weeks ago when the club was forced by a technicality to make a formal statement to the Stock Exchange that it was not following up L4's advances.

"We are looking for the right investment. A lot of effort is going into that - and when the process has been completed we will announce something."

Liverpool clearly still remain a sought after investment opportunity.

Chakrapot Penkai, spokesman for the Thai Prime Minister said last spring: "Why does the Prime Minister want to invest in Liverpool? Because it is the era of the brand name. With a brand name you can do many things.

"Liverpool's name is a world class name - people attach their fantasies, their liking for sports, their enhancement in life, their self-development, along with this kind of team."

But while a legion of Liverpudlians waits expectantly, the clock is ticking.

MARCH 30
Rebuffed fan Morgan waits in the wings

Liverpool Echo

To date, Steve Morgan has made four separate offers to invest in Liverpool Football Club.

The most public bid, last May, suffered the same fate as the others, tossed out and rejected as "unattractive."

A club statement said: "The Bridg-mere proposal of £1.750 per share implies a current value of £61m for the entire club, which is a substantial dis-count to the value placed on the club by the board."

So what is Liverpool worth? And if Liverpool is worth more than £61m, is there anybody else out there willing to pay the asking price?

Thai Prime Minister Thaksin Shinawatra initially proposed £60m for just a 30 per cent stake in Liverpool - but few details were made public.

When Steve Morgan presented his plans he did so in a carefully detailed - and public - submission.

The first step of Morgan's proposal was to have a 10 for 1 share split, which meant Liverpool's current 35,000 share base would become 350,000.

David Moores would see his shares rise from 17,850 to 178,500 (still a 51 per cent controlling interest), Granada would have 34,650 (9.9 per cent) and Steve Morgan 17,850 (5.1 per cent).

Morgan would then underwrite a one-for-one rights share issue with each share valued at £175, generating £61m.

If David Moores decided not to buy up any new shares, his holding would be slashed to 25.5 per cent, while Morgan could own a minimum of 214,200 shares (30.6 per cent) at a cost of £34.4m, or a maximum of 367,850 (52.5 per cent) at a cost of £61.3m.

In other words, he would control the club.

To prevent this happening, David Moores would probably have to invest between £12m and £20m to remain as majority shareholder.

His personal wealth is not known, but such an outlay would appear to be well within his means.

The Moores family's Littlewoods empire was sold to the Barclay twins for £35.9m and the Moores family is believed to be worth £1,255m in total.

Steve Morgan has made his fortune from Redrow Homes, with The Times Rich List placing him at 105 in Britain with an estimated fortune of £312m.

If Morgan is to ever succeed, he may have to improve his offer significantly. But he has previously insisted his price is a fair one - and stressed his method of moving in mirrors that employed by Moores 14 years ago.

Malcolm Glazer, by comparison, is expected to formally offer £3.00 per share to buy a controlling interest in Manchester United.

That, offer, however, is way in excess of what most experts believe the club to be worth. Even generous analysts value United at only 240p per share. Shares closed last Friday at 2661/2p.

MARCH 8
L4 Group out of picture

Sporting Life

Liverpool have dismissed any chance of American-based L4 Group investing in the club but remain determined to find new funds from elsewhere.

In an announcement via the Stock Exchange, the Anfield club ruled out a cash injection from the consortium put together by two US-based entertainment executives and thought to have the backing of the Kraft family - owners of the New England Patriots (NFL) and the New England Revolution soccer franchises.

"The board of Liverpool FC confirms it is continuing discussions with a number of parties regarding a potential investment of new funds into the club," said the statement.

"The club has discontinued discussions with the L4 Group. A further announcement will be made when appropriate."

Just three months ago, Liverpool denied they were in negotiations with L4. Conversations have obviously taken place since then, although the outcome appears to have been unsatisfactory.

Tuesday's statement reflects the comments of chief executive Rick Parry, who yesterday admitted Liverpool were still in talks with would-be investors and admitted his club's third-largest shareholder Steve Morgan is still in the frame after seeing previous bids rejected.

"We are looking for the right investment. A lot of effort is going into that - and when the process has been completed we will then announce something," he said.

Liverpool badly need extra funds as they seek to bankroll a new stadium in Stanley Park, the cost of which has spiralled, and significant squad rebuilding under manager Rafael Benitez.

The Reds have fallen behind their traditional rivals on the pitch - and Benitez, who arrived at Anfield last summer, is planning a major overhaul of his squad in the close season in an attempt to close the gap on Chelsea, Manchester United and Arsenal.

FEBRUARY 8
Moores ready to go the extra mile

Sporting Life

Liverpool chairman David Moores could dip into his own pocket to fund his club's transfers at the end of the season.

Despite reports over the last year of consortiums planning to invest at Anfield, no deal has been agreed to bring cash to the Barclays Premiership club.

Fernando Morientes was brought to the club from Real Madrid for £6.3million during the transfer window, but Liverpool's financial future remains uncertain.

With skipper Steven Gerrard understood to be a target for current leaders Chelsea, building a strong squad is seen as the key to keeping the 24-year-old on Merseyside.

"He (Moores) will do whatever it takes to move it forward, even if it affects his own interests. He cares more about this club than about himself," said chief executive Rick Parry.

Potential investment from the Thai Government or American investors has not materialised, while local businessman Steve Morgan has failed in his attempt to take control of the club.

Morgan withdrew his offer of a £70million cash injection in December, with his lawyer insisting the lifelong Reds fan had "lost patience" with the club's current board over their failure to strike a deal.

With reports of a move away from Liverpool, Parry admitted on Monday the club would not keep Gerrard "against his will" if a big bid arrived.

"It is a frustration that we have not come up with the investment, but life is not like that," Parry added on official website www.liverpoolfc.tv

"We have got through this season tolerably - we've invested £43million in the team, so we've not tightened the purse strings too much.

"Apart from maybe Chelsea, by anyone else's standards that's a reasonable investment.

"The chairman is quite positive at the moment because he's quite pleased with how Rafa's been performing, 2004 was a difficult year from his point of view but there is no better chairman in the world of football. No manager could have greater backing."

"It was particularly difficult in the summer with Gerard (Houllier) going and the uncertainty over Stevie (Gerrard). But having got Rafa (Benitez) on board and seeing some signs of progress he's happier, but still extremely keen to find the right investment."

FEBRUARY 7
Parry relishes Anfield challenge

BBC Sport reflects on the future for Liverpool after our exclusive interview with chief executive Rick Parry.

By Phil McNulty, Chief football writer - BBC Sport Online

Rick Parry's in-tray reflects his status as the man charged with one of football's biggest challenges.

Chief executive Parry is the man at the helm as Liverpool reach the most crucial point in their recent history.

Parry has to deliver a new 60,000-seat stadium in Stanley Park by 2007 amid claims of costs spiralling above £120m.

He is also searching for an investment package of a size and stature that will restore Liverpool to their place at European football's top table.

But it is a challenge that appears to sit easily with Parry, who has forged a reputation as one of football's most respected administrators since his days at the fledgling Premier League.

Liverpool have not won the championship since 1990, a fact that causes deep discomfort inside Anfield as they attempt to muscle in on the top three of Chelsea, Manchester United and Arsenal.

Throw in the small matter of warding off every top club in world football as they eye captain Steven Gerrard, and you can see Parry is a man with a lot on his plate.

But in the comfort of a conference room deep inside Liverpool's heartbeat - The Kop end - Parry spoke to us with brutal honesty about the crucial months ahead.

He only dodged one question - when asked to reveal the name of the mystery investor currently courting Liverpool, a polite smile deflected the inquiry.

But to his credit, he met everything else head on in measured tones that underscore the belief that Liverpool still mean business.

By business he means becoming title challengers again, and locking the pieces together that will help return the trophy to Liverpool is Parry's mission.

Parry has already successfully put one of those planks in place in the form of new manager Rafael Benitez.

And his enthusiasm for the Spaniard's personality and methods is an indication of his clear feeling that he has struck gold.

Benitez's early work has given Parry renewed optimism about the years ahead.

But it remains a massive task at a club with a unique history and expectations.

This will not come as news to Parry, a lifelong Liverpool supporter, but his quiet determination suggests he is no mood to be found wanting...

WHAT PARRY SAID ABOUT GERRARD

Captain Gerrard is central to Liverpool's plans and Parry's insistence that all offers will be refused is a firm statement of intent.

As ever, the player will have the final say, and Parry acknowledges that, but he is determined to provide the framework and environment for Liverpool and Gerrard to flourish.

WHAT PARRY SAID ABOUT NEW INVESTMENT

In terms of the search for new investment, Hawkpoint were appointed as advisors to flush out interest in March 2004.

Thailand Prime Minister Thaksin Shiniwatra came and went, while the most serious statement of intent came from tycoon and lifelong fan Steve Morgan.

Morgan had a succession of bids rejected, having come close in the summer only for talks to break down over potential costs for the new stadium.

BBC Sport understands Morgan is still ready and willing to invest in Liverpool, and Parry has kept the door ajar despite currently seeking investment elsewhere.

Morgan, however, has had no formal contact with Liverpool or their advisors since last December, blaming indecision at board level as he publicly withdrew his £70m offer.

He was also convinced his interest was being used to lure in others, so any new approach would now have to come from Liverpool. Morgan will certainly not be making another call.

So speculation continues about the new benefactor, with trails leading to the Middle East and America, but all met with an understandable veil of secrecy from Anfield.

WHAT PARRY SAID ABOUT THE NEW STADIUM

Parry meanwhile sees the new ground as crucial to Liverpool's future, but is refusing to become emotionally attached to the idea.

He is determined the ground will only be built on an affordable basis and will not make future Liverpool management hostages to the new stadium.

Parry will pull back the moment the figures do not stack up, but there has been a vital new development in North London that has re-shaped Liverpool's thinking.

Liverpool have publicly refused to entertain the idea of stadium sponsorship and potential naming rights - but the realism of Arsenal's stunning £100m deal for their new Emirates Stadium at Ashburton has changed the landscape.

Parry labelled the deal "an eye-opener" and admits Liverpool would be missing a trick not to explore the possibilities.

He knows some traditionalist Liverpool fans will reel at any attempt to call the new stadium anything other than just 'Anfield', but the maths of modern-day football decree that multi-millions for stadium and team could ease the pain.

Thor Zakariassen ©