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DIC Offer Share of Future Of Future Success To Pool Owners
Dubai International Capital (DIC) is willing to give Liverpool's American owners a share in future profits, such as stadium receipts and trophy success, if they accept its £400m indicative offer for the club. DIC envisages buying out George Gillett's half stake in the club and allowing Tom Hicks to arrange his other financial affairs before taking full control of the club, possibly through staged purchases of his 50 per cent stake. After Mr Gillett failed to conclude a deal by the deadline of midnight on Tuesday, DIC put forward its profit-sharing proposal. Under the revised deal, DIC would cover the £350m debt the US owners refnanced with Royal Bank of Scotland and US investment bank Wachovia in January. In addition, it has offered Mr Gillett a package of £80m, mostly made up of cash and topped up with a share of future profits. Such a package would also have to be offered to Mr Hicks, pushing the total cost to over £500m. DIC believes it will get its way, despite Mr Hicks' insistence that he is not a seller. However, they would be unlikely to do a deal with Mr Gillett if they did not end up controlling the club.
Hicks May Bid For Sole Control
American businessman Tom Hicks may attempt to buy out co-owner George Gillett as the battle for Liverpool Football Club intensifies. Sovereign wealth fund Dubai International Capital (DIC) are reported to have made a £400m bid for the club last Wednesday, an offer which has not yet been rejected. DIC are said to be confident that Gillett would be willing to accept an offer of £200m for his 50 per cent stake in the club, maybe even by the end of the week. However, Hicks, who was meant to be the silent partner in the takeover 13 months ago, may be ready to exercise his right to have first refusal on Gillett's stake. Hicks is said to have secured an off-market placement of his shares in Hicks Sports Group, which includes his two American sports franchises, the Texas Rangers baseball team and the Dallas Stars ice hockey team, as well as his stake in Liverpool. DIC remain doubtful about whether Hicks has the funds to buy out his partner, especially as the Texan billionaire has frequently been encouraging them to negotiate with him in recent weeks over the sale of the club. A more likely outcome is that both men that will agree to a deal that leaves them with a £25m profit on their original investment. Meanwhile, the club remains in chaos with no one knowing who is running it.
Share Liverpool Develop Plans
Meanwhile..., The organisers of ShareLiverpoolFC have taken the idea of turning Liverpool Football Club into a membership organisation off the drawing board by announcing the formation of a high-powered Steering Group to take the plans forward. The proposal to put ownership into the hands of the fans has attracted the direct involvement of city financiers, top lawyers, marketers and media specialists, as well as Liverpool legends such as Phil Thompson and John Aldridge who are backing the initiative. Organiser Rogan Taylor said that the scheme had got off to a fantastic start. 9,500 people have pledged £5000 each and another 9000 have expressed interest. If all the pledged money arrived that works out at a little under £50m and the club is valued at at least £350m. More money could arrive, but time is of the essence as one of the 50 per cent American shareholders is likely to sell in the next few weeks and probably to Dubai International Capital who are hovering in the wings waiting their chance to acquire the club.
UPDATE: Deal On Again, Deal Off Again - Are You Keeping Up Still?
10th March - Latest reports say Dubai International Capital (DIC) has agreed a deal with Liverpool co-owner George Gillett to buy 98 per cent of his stake in the club, 49 per cent of the company. Tom Hicks will buy the remainder which will give him a 51 per cent controlling stake. DIC is confident that this arrangement will be a stepping stone towards full ownership in the long term, but Hicks claims publicly that he sees DIC as nothing more than an investor that will add capital to help move the club forward. Hicks accused DIC front woman Amanda Staveley of leaking e-mails confirm his willingness to hold discussions with the Emirates investment group, but despite his complaints about this he will hold further talks with her over the next few days. This looks like the end of the romantic dream of fan ownership of Liverpool for the forseeable future. Plans for a non-league AFC Liverpool continue to advance on the lines of FC United's 'make friends, not money.' However, some non-league supporters resent such well funded intruders and ask why an existing local non-league team cannot be supported. In practice, many non-league fans also support top clubs.
11th March - Now latest reports say sale of Liverpool Football Club to Dubai International Capital (DIC) has been halted. One cannot rule out its revival or some other deal being made. Last night co-owner Tom Hicks announced that he had decided to end firther discussions with DIC. He said, 'I and my colleagues will continue to explore a number of other options with regard to the ownership of the club.' DIC had accepted that Hicks would not sell his share in Liverpool in the near future, but insisted on a clause giving them first refusal to buy his stake. Hicks stated, 'DIC have made it clear that if they invested in the club, they would want it to be managed by committee. It is clear to me that such a committee approach would not be in the best interests of the club.' It may also be that, having become majority owner under the deal, Hicks would have resented such an arrangement. Long suffering Liverpool fans have reacted with dismay to the news. Lee Lawson, secetary of the Liverpool official supporters club said 'This has gone down like a lead balloon. Hicks is doing this because he wants to run LFC in a particular way. DIC were saying they wanted to run the club by committee, but that's how it has always been done. The Liverpool supporters' attitude will harden now. We know about loyalty, the only loyalty Hicks is showing is to himself and his bank account.' In circumstances such as these managers and players always insist that they focus on what is happening on the pitch, but it must be a distraction.
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