Dubai International to make bid for Liverpool FC

[calvoboy]

Fair enough, I suppose, but there are some people who know things but can't indulge too much, especially in places like this, where anyone can be reading what's being typed.

Again, each to there own.

I appreciate that. It's all this vague "things that I said before have come to pass, and now I predict a change in attitudes sometime soon. Look not at what is said, but what is not said" bollocks that I can't be doing with. As far as I'm concerned if you know something but can't say, then by all means post saying "I know something but can't say", but don't then claim afterwards that you were "spot-on" with your information when you haven't actually posted any!

Each to their own though, as you say. Some people like astrology, homeopathy and crystal healing, some like hints at insider knowledge on internet forums.

[disco]

I pay out of my own money say £200 million for the club. I sell later for £600 million. My profit £400 million.Hicks/gillett pay £0 out of their own money-everything is a loan-They sell for £600million-profit £600 million. This discounts any monies taken out of the club in dividends etc. Seems a hell of a difference to me.

No, they sell for £600m, pay back £200m in loans, and make £400m profit out of around £50m of their own investment.

It's how Private Equity companies work, DIC would do the same. In fact, as someone mentioned earlier NOT doing this is considered an inefficient use of capital.

[disco]

From the snippets of his posts posted on here, it doesn't appear as if cowtownred has actually said anything. Looks very similar to the psychic trick of cold-reading to me. No firm details, allows people to read into his posts whatever they want, and so will be able to say "I told you so" regardless of what happens.

there are one or two journalists and people on here who make me think the same

[Neil Young]

there are one or two journalists and people on here who make me think the same

Mihir Bhose for instance.

[Roboklopp]

No, they sell for £600m, pay back £200m in loans, and make £400m profit out of around £50m of their own investment.

It's how Private Equity companies work, DIC would do the same. In fact, as someone mentioned earlier NOT doing this is considered an inefficient use of capital.

Aye, in ideal circumstances that is the way things work but I think the worry most have is that they will use the club's income to pay off the debt rather than investing it back into transfers, wages etc. Remember, we need another loan for the stadium.

I think most reasonable people understand we would need to take on some sort of debt to fund the stadium (even be this a debt to the owners), but it is the "using the club to pay for itself" long term scenario that is the nightmare. Yes, if they underinvest in us we will be less marketable in the long term, but given that they have invested virtually nothing, any price they sell us for will be money in their pockets.

Also, this split of the debt between the club & its parent company is nothing but nominal.

[Liverpool]

No, they sell for £600m, pay back £200m in loans, and make £400m profit out of around £50m of their own investment.

It's how Private Equity companies work, DIC would do the same. In fact, as someone mentioned earlier NOT doing this is considered an inefficient use of capital.

Not necessarily so. If they cling on long enough the capital and interest will all be paid by the acquired business. This is the "weetabix" scenario as outlined by Tom Hicks.

[Kilteragh]

You do know there is over 110 pages of us all sying what your saying, your going on a little bit.

If we are all so stupid and we should do something please instead of having goes tell us what you think we should do. Please tell us all your plan of how to get these guys out.

Yes obviously Jrd7 has the answers so he will enlighten now one of the days. Or should we all just be depressed and angry end of story?

[Roboklopp]

Not necessarily so. If they cling on long enough the capital and interest will all be paid by the acquired business. This is the "weetabix" scenario as outlined by Tom Hicks.

As I said mate.

[Darth Marty]

wow. hell of a thread with all sorts of weird and wonderful things being mentioned.
For me its still plain and simple. The americans are lying, money grabbing cunts and I want them gone. Sooner rather than later if at all possible. No amount of spin can redeem them in my eyes and just thinking about the amount we have to repay each year until our increased revenue kicks in makes me conclude we will be a struggling team until at least 2012. With the other teams (portsmouth, newcastle, spurs, everton, villa, west ham) all benefitting from better teams/better cash injections and the top 3 all pulling away then I am largely negative and cant see a golden sky any time soon. Its been a bad week.

[Red_Al_77]

The big question for me is why didn't DIC go public with a bid. Major publicity may have made the difference and increased the pressure.

[Alpha]

The big question for me is why didn't DIC go public with a bid. Major publicity may have made the difference and increased the pressure.

Maybe because they would have looked like mugs twice in the space of a year if the bid failed.

[sonsofthedesert]

Yes obviously Jrd7 has the answers so he will enlighten now one of the days. Or should we all just be depressed and angry end of story?

That was my point, he wants to wollow in the depression where as I think we all need to accept what has happened and to a degree move on. We just need to ensure they stick to all the promises they have made today.

[Fowler_God]

The big question for me is why didn't DIC go public with a bid. Major publicity may have made the difference and increased the pressure.

Maybe they didn't want to be seen to lose twice for LFC if it didn't come off (exactly what has happened).
At least now they can deny all involvement

[Tom]

What was the weetabix scenario?

"When I was in the leverage buy-out business we bought Weetabix and we leveraged it up to make our return. You could say that anyone who was eating Weetabix was paying for our purchase of Weetabix. It was just business. It is the same for Liverpool; revenues come in from whatever source and go out to whatever source and, if there is money left over, it is profit".

"All of these teams have become businesses in the past 20 years, this business has to do with fan affinity and brand devotion. It doesn't necessarily have to do with winning."

[Red_Al_77]

Maybe because they would have looked like mugs twice in the space of a year if the bid failed.

In reality they wanted it on the cheap and were hoping that HICKS was a panic merchant. I have to say I don't think DIC will ever pay over the odds for us and because of that they will never prise Liverpool from HICKS. Money talks and it looks like for all this blah that they were Liverpool fans it came down to the balance sheet.