I know he's received a lot of stick, some of it rightly, and I know alun on here in particular suggested it would be a good gesture if he left Rafa a parting gift, but it seems the £10m for the Kuyt deal was personally funded by Moores himself:
http://www.guardian.co.uk/frontpage/...033412,00.html
http://www.guardian.co.uk/frontpage/...033412,00.html
Americans borrow £298m to buy Liverpool
Club likely to foot annual £21.5m interest payments
Moores family loaned £10m for new signings
David Conn
Wednesday March 14, 2007
The Guardian
Thomas O Hicks and George Gillett Jr, the two American businessmen who are close to completing their takeover of Liverpool, have borrowed almost £300m from the Royal Bank of Scotland to finance the deal. The bank has loaned the money at 1.5% above the current standard lending rate, meaning that about £21.5m interest will be payable this year.
The debt is not being taken on by the club in the way the Glazer family loaded Manchester United with £660m borrowings from their 2005 takeover, but professionals close to the deal said it was nevertheless likely that Liverpool would pay the interest, or pay Hicks and Gillett "a big dividend" at the end of the year to enable them to do so.
Article continues
The terms of the loans are in the offer document sent to all shareholders, revealing that the two men are borrowing £185m to pay for the £174m takeover itself and associated costs, with another £113m available as a "revolving credit facility" to absorb Liverpool's debts and fund the club and preliminary work on the new 60,000-seat stadium. A further £200m will be borrowed to build the stadium but the way that will be done has not been worked out. The initial £298m loans are guaranteed by Hicks and Gillett personally.
The offer document also reveals how stretched Liverpool became financially last year as the chief executive, Rick Parry, searched for someone to take over the club. In August the then chairman David Moores lent the club £10m - £2m personally and £8m from a family trust - to let the manager, Rafael Benítez, have some money to strengthen the squad, which he spent on buying the striker Dirk Kuyt.
Parry said that with a takeover likely the club had not wanted to take on more bank finance. "We were at the limit in terms of our short-term borrowing facilities and were racking up expenditure keeping the stadium on schedule, so it was a fantastic gesture by David to make that money available." Along with the money Hicks and Gillett are paying for his shares, Moores will have his loans repaid in full.
The takeover is certain to go through after it was confirmed last week that over 80% of Liverpool shareholders had accepted the offer of £5,000 a share. Moores, the former 51.5% shareholder, will be paid £89.615m for the 17,923 shares he bought for about £12m.
Robert Tilliss, the New York-based financial adviser to Hicks and Gillett, said the men had been attracted by buying "one of the leading brands in the world's No1 sport". He said they would bring their sports business expertise over from the US, where $20bn (£10.3bn) has been spent in recent years upgrading stadiums whose ticket prices make those in the Premiership seem like a snip. Tilliss said the popularity of English football in Asia had also been a factor. "All clubs in the US continue to drive on international, national and local revenues, and the great brands of English football certainly have room to develop."
Hicks and Gillett, who have said they intend to be "custodians" and hold Liverpool as a family asset, will own the club via a company structure based in the tax havens of the Cayman Islands and the US state of Delaware. The ultimate holding company, Kop Investment LLC, is registered in Delaware, which has low corporation tax and no capital gains tax, and its principal office is at Hicks's corporate headquarters in Dallas, Texas. One professional involved with the deal said that this did not mean the two men foresaw a sale or flotation and were "sheltering" those future gains from tax, but that it was simply "a tax efficient" way to structure the deal.
Club likely to foot annual £21.5m interest payments
Moores family loaned £10m for new signings
David Conn
Wednesday March 14, 2007
The Guardian
Thomas O Hicks and George Gillett Jr, the two American businessmen who are close to completing their takeover of Liverpool, have borrowed almost £300m from the Royal Bank of Scotland to finance the deal. The bank has loaned the money at 1.5% above the current standard lending rate, meaning that about £21.5m interest will be payable this year.
The debt is not being taken on by the club in the way the Glazer family loaded Manchester United with £660m borrowings from their 2005 takeover, but professionals close to the deal said it was nevertheless likely that Liverpool would pay the interest, or pay Hicks and Gillett "a big dividend" at the end of the year to enable them to do so.
Article continues
The terms of the loans are in the offer document sent to all shareholders, revealing that the two men are borrowing £185m to pay for the £174m takeover itself and associated costs, with another £113m available as a "revolving credit facility" to absorb Liverpool's debts and fund the club and preliminary work on the new 60,000-seat stadium. A further £200m will be borrowed to build the stadium but the way that will be done has not been worked out. The initial £298m loans are guaranteed by Hicks and Gillett personally.
The offer document also reveals how stretched Liverpool became financially last year as the chief executive, Rick Parry, searched for someone to take over the club. In August the then chairman David Moores lent the club £10m - £2m personally and £8m from a family trust - to let the manager, Rafael Benítez, have some money to strengthen the squad, which he spent on buying the striker Dirk Kuyt.
Parry said that with a takeover likely the club had not wanted to take on more bank finance. "We were at the limit in terms of our short-term borrowing facilities and were racking up expenditure keeping the stadium on schedule, so it was a fantastic gesture by David to make that money available." Along with the money Hicks and Gillett are paying for his shares, Moores will have his loans repaid in full.
The takeover is certain to go through after it was confirmed last week that over 80% of Liverpool shareholders had accepted the offer of £5,000 a share. Moores, the former 51.5% shareholder, will be paid £89.615m for the 17,923 shares he bought for about £12m.
Robert Tilliss, the New York-based financial adviser to Hicks and Gillett, said the men had been attracted by buying "one of the leading brands in the world's No1 sport". He said they would bring their sports business expertise over from the US, where $20bn (£10.3bn) has been spent in recent years upgrading stadiums whose ticket prices make those in the Premiership seem like a snip. Tilliss said the popularity of English football in Asia had also been a factor. "All clubs in the US continue to drive on international, national and local revenues, and the great brands of English football certainly have room to develop."
Hicks and Gillett, who have said they intend to be "custodians" and hold Liverpool as a family asset, will own the club via a company structure based in the tax havens of the Cayman Islands and the US state of Delaware. The ultimate holding company, Kop Investment LLC, is registered in Delaware, which has low corporation tax and no capital gains tax, and its principal office is at Hicks's corporate headquarters in Dallas, Texas. One professional involved with the deal said that this did not mean the two men foresaw a sale or flotation and were "sheltering" those future gains from tax, but that it was simply "a tax efficient" way to structure the deal.
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