Once again the situation surrounding Liverpool Football Club is confused. Some reports are claiming that talks with a Kuwaiti family who want to buy into the club have broken down over the asking price and how big a stake they would have. However, this could simply be negotiating brinkmanship and does not mean that a deal will not be done. However, one earlier attempt to reach a deal did fail.
Once again the situation surrounding Liverpool Football Club is confused. Some reports are claiming that talks with a Kuwaiti family who want to buy into the club have broken down over the asking price and how big a stake they would have. However, this could simply be negotiating brinkmanship and does not mean that a deal will not be done. However, one earlier attempt to reach a deal did fail. The Al-Kharafi family, whose £8bn fortune is based on construction and a number of holdings in the banking, fast food and tourism sectors, are understood to have pulled out of a previous deal in the autumn. However, at least this means that due diligence on the club has already been completed. The latest talks were initiated by co-owner Tom Hicks, apparently initially without the knowledge of his business partner George Gillett. The club’s commercial director Ian Ayre and financial director Philip Nash were dispatched to the Middle East for talks. Both are considered to be in the Hicks camp in the ongoing split at the top of the club.
Some sources claim that Hicks is just offering half of his stake to raise funds for the club’s new stadium, a deal that would probably not interest the Kuwaitis. They were previously involved in talks to buy Newcastle United. A full takeover of Liverpool would probably cost them £500-£600m. The picture is further complicated by the presence of a European bidder in the wings. Time is running out for Hicks and Gillett, as their £350m loan with Royal Bank of Scotland, taken out when the Americans bought the club two years ago, expires in July. The loan was extended for six months at the beginning of the year, and the chances of negotiating a new loan are thought to be remote. It is now accepted that Liverpool will have to be sold by July. To whom and when is still not resolved.