Excuse my poor knowledge on

[dom9]

Business operation

My knowledge on how business operates is very limited so the question I propose is, why on earth would DIC be prepared to pay £500m when they were only willing to pay £240m the previous year? If the figure of £500m is correct I wonder how much of an impact this would have on investment for players.

AFII, I'm begging you, please do not answer this question

Many thanks.

I don't think there is a logical answer to that question.

If this guy that runs DIC is really is a true LFC fan, then maybe the fiasco of the last 6 months has galvanised him into acting.

[marcus50bucks]

Rumours elsewhere (RAWK) that DIC are getting some extra financial backing from elsewhere

Don't believe that for a start.

[marcus50bucks]

But £500m wasnt required last year.

And when they walked away, i maintain this wasnt because of money, because they could've easily trebled it if they wanted. But that's not how they work, they had an agreement and felt betrayed when Moores went to the yanks, so they had no further interest.

[Red Chilli]

Business operation

My knowledge on how business operates is very limited so the question I propose is, why on earth would DIC be prepared to pay £500m when they were only willing to pay £240m the previous year? If the figure of £500m is correct I wonder how much of an impact this would have on investment for players.

AFII, I'm begging you, please do not answer this question

Many thanks.

Because LFC is worth more than 500 million pounds to them.
If they turn us into the biggest club in the land we'll be bigger than the SCUM were and they were worth more than 1 billion at one stage.
They were willing to pay more last year, but they left negotiations after they felt insulted.
Strange thing to do but they had their reason I guess.

[SimonNo7]

Business operation

My knowledge on how business operates is very limited so the question I propose is, why on earth would DIC be prepared to pay £500m when they were only willing to pay £240m the previous year? If the figure of £500m is correct I wonder how much of an impact this would have on investment for players.

AFII, I'm begging you, please do not answer this question

Many thanks.

Now I’m not certain on the situation with the planning permission for the new stadium at the time when the first sale went through but now all the right permissions are in place so could it be, like someone else mentioned in another post about buying a plot of land and then getting planning permission so it is worth more, the club as a whole is worth much more because of the planned new stadium.

Just a thought but I could well be talking complete and utter

[Iceman]

its not about money its all about promoting Dubai

as said by others the sheik and his entourage are very proud people

he also happens to be the 6th richest person in the world

of course they will borrow the money when you are that rich you dont use your own money

However when DIC approach RBS or whoever I doubt the banks will be asking for personal guarantees

[dawmdt]

Rumours elsewhere (RAWK) that DIC are getting some extra financial backing from elsewhere

They wouldn't need financial backing to actually go through with any purchase so the only possible reason for that would be if they didn't want to own the club 100% outright (there could be a few reasons for that, eg they see it as a risky venture and they'd want to spread that risk with another counterparty or perhaps they want to bring in another party who has experience running football clubs\sports businesses but they'll only join if they can own a portion).

However, this would be a completely different pattern to their previous investments from what I've read about them in the past.

[Matt]

its not about money its all about promoting Dubai

as said by others the sheik and his entourage are very proud people

he also happens to be the 6th richest person in the world

of course they will borrow the money when you are that rich you dont use your own money

However when DIC approach RBS or whoever I doubt the banks will be asking for personal guarantees

I dont understand much of the finance stuff but I really dont get that. Why would you get a loan and pay interest on it if you could afford to do it out of your own pocket?

[sonsofthedesert]

I dont understand much of the finance stuff but I really dont get that. Why would you get a loan and pay interest on it if you could afford to do it out of your own pocket?

becasue it is much more tax efficient.

[ronniedrew]

Business operation

My knowledge on how business operates is very limited so the question I propose is, why on earth would DIC be prepared to pay £500m when they were only willing to pay £240m the previous year? If the figure of £500m is correct I wonder how much of an impact this would have on investment for players.

AFII, I'm begging you, please do not answer this question

Many thanks.

the paper value of the club has gone up considerably.

more assets (players etc), ground planning permission, tv revenue, another champions league final, better marketing

it hasnt gone up that much, but who knows what they are actually going to pay. one things for sure, they are financially secure. the debts on the club have gone up aswell, so they will need to clear these and give h&g a profit to make sense for both parties

i think they will invest heavily in the squad to become the cream of the crop, they are competent business men and obviously know that it takes money to make money, godolphin etc, massive amounts of money are invested in horses before they can even run.

[rudedog]

Business operation

My knowledge on how business operates is very limited so the question I propose is, why on earth would DIC be prepared to pay £500m when they were only willing to pay £240m the previous year? If the figure of £500m is correct I wonder how much of an impact this would have on investment for players.

AFII, I'm begging you, please do not answer this question

Many thanks.

I think that the main reason Moores went with the Yanks is because their deal allowed them to stay on at the Club. DIC wanted their own people in.

After DIC lost out to the Yanks, they came out with the statement that 'they weren't prepared to pay over the odds'. I think this was purely PR - put out to save face.

[AFII]

Business operation

My knowledge on how business operates is very limited so the question I propose is, why on earth would DIC be prepared to pay £500m when they were only willing to pay £240m the previous year? If the figure of £500m is correct I wonder how much of an impact this would have on investment for players.

AFII, I'm begging you, please do not answer this question

Many thanks.

I won't answer the question because I don't have a clue about the answer. G&H bought the club for £280m if I remember things right but we also had a £80m debt. £280m plus £80m....£360m. The club isn't so far the security for that loan.

G&H will never sell if they can't make a very good profit if they are not ****ed and can't get a new loan so DIC would have to pay way over the odds if they want the club. Nothing to do with the previous bid just that the goalposts have been moved.

I did answer the first question, sorry.

[CAD]

Business operation

My knowledge on how business operates is very limited so the question I propose is, why on earth would DIC be prepared to pay £500m when they were only willing to pay £240m the previous year? If the figure of £500m is correct I wonder how much of an impact this would have on investment for players.

AFII, I'm begging you, please do not answer this question

Many thanks.

It's a good question. It.makes.no.sense whatever way you look at it.

People who think that DIC walks around throwing money at things for fun are seriously deluted. They are here - like everybody else - to make money.

If they didn't want to play last year for 280mill why would they pay 500 now:

Answer: They would NOT.

No ****ing way will that happen.

[Iceman]

but the club now have planning permission for the new stadium..........it has not been called in by the secretary of state................ that increases the clubs value because we have planning permission to increase our revenue streams

[CAD]

but the club now have planning permission for the new stadium..........it has not been called in by the secretary of state................ that increases the clubs value because we have planning permission to increase our revenue streams

Do you seriously think that DIC (or anybody) expected City Council to block the stadium? Liverpool needs Stanley Park and the new business and general city renewal. Are you telling me that DIC wasn't sure that it would go through and that's why they backed out last year? The fact that City Council has approved the plans does not increase the value. All involved knew they would be given the greenlight and Moores sold because he couldn't fund it (the stadium).

350 mill? Maybe. But never 500. In the world of business you don't go around paying over the odds for companies. These guys - all of them inclucing G&H - are top professionals. They have a reputation to think about. In my experience with the few wealthy people I have meet over the years there is only one thing they value as much as their money and that is their reputation. In the context of business that is.

For DIC to walk in now and pay 500 for something they could have bought for 290 last year is unthinkable. Nothing of any significance has changed in LFC in that period and they would be the joke of the business community. DIC - who spend the better part of two months on a due due diligence to make sure everything was in order! DIC - their Indian name would probably be "Walks with money and honour" throwing crazy money at two Americans?

Hardly.

I see it like this:

Is Hicks and Gillett in a tough spot? Will they have problems funding LFC and the stadium without placing the club in debt? If the answer is yes there is an opening for DIC. That is the only way I can see it happening. If this assumption is correct then DIC have the upperhand already. This makes the 500mill£ even less likely.

The whole issue revolves around placing the club in debt. That's my guess. Hicks wants to do it and Gillett doesn't. That's the rift and that's the DIC opening IMHO.