Whats the difference between DIC and Hicks / Gillette

[Barndoor]

Lurker here - but I need to get something off my chest .....

Much as I am not impressed by the way the Americans have handled themselves, it could be argued that both they and Rafa have not acted in accordance with the TLW, now maybe Rafa have valid reasoning for this but the fact is both parties have been doing their snipping in pubic. I cant wait to get castigated for that .....

That is an aside to the main issue I worry about, why do fans think that DIC will be any better ? Arent DIC essentially a private equity firm and wont they finance any aquisition of the club with as much cheap debt as they can ? Isnt that their business model ?

I know a lot of people get excited about whether the debts are secured against the club or the shareholders assets themselves but im not sure I realy see the difference in practicle terms ? Either way the club has to service the debt either by paying interest payments on any direct loans the club has or by paying divdends to the shareholders from which they can service the interest on the loans they have.

If the club can't make the interest payments, the banks can enforce their security, if the current and proposed shareholders don't receive divdends from the club and they cant pay their loans the banks can enforce the security the shareholders have provided which would ordinarily include a pledge over the business interests including the ownership of the club. Dividends are usually waived in these scenarios, they may be deferred accruing interest but they ultimately would be expected to be paid.

In other words, I doubt very much if the loans the Americans are negotiating and that DIC would likely use would be not be secured against the club in one way of another.

Either way, the money is being borrowed to invest in the club and is likely to be ultimately secured against the clubs revenue streams. We are not talking about personal wealth being used to subsidise the club (as it has in the past) we are talking about bank financing and the clubs revenues being used to repay.

Have I missed something, but arent the Americans and DIC essentially likely to finance the club the same way just in maybe slightly different packaging ?

As such why would they be any better, discuss.....

YNWA

[Tee]

Americans LIED. They ****in LIED. Simple as. Read the giant thread for details of their lies in case you need reminding.

WTF is going on in here today? Is it July 4th or something?

[AFII]

The difference is that DIC probably only would do it for tax reasons and not because they can't afford to do it in another way.

G&H do it so they can milk as much money they can from the club without having to pay a single pound themselves.

[Frank Leroux]

Lurker here - but I need to get something off my chest .....

Much as I am not impressed by the way the Americans have handled themselves, it could be argued that both they and Rafa have not acted in accordance with the TLW, now maybe Rafa have valid reasoning for this but the fact is both parties have been doing their snipping in pubic. I cant wait to get castigated for that .....

That is an aside to the main issue I worry about, why do fans think that DIC will be any better ? Arent DIC essentially a private equity firm and wont they finance any aquisition of the club with as much cheap debt as they can ? Isnt that their business model ?

I know a lot of people get excited about whether the debts are secured against the club or the shareholders assets themselves but im not sure I realy see the difference in practicle terms ? Either way the club has to service the debt either by paying interest payments on any direct loans the club has or by paying divdends to the shareholders from which they can service the interest on the loans they have.

If the club can't make the interest payments, the banks can enforce their security, if the current and proposed shareholders don't receive divdends from the club and they cant pay their loans the banks can enforce the security the shareholders have provided which would ordinarily include a pledge over the business interests including the ownership of the club. Dividends are usually waived in these scenarios, they may be deferred accruing interest but they ultimately would be expected to be paid.

In other words, I doubt very much if the loans the Americans are negotiating and that DIC would likely use would be not be secured against the club in one way of another.

Either way, the money is being borrowed to invest in the club and is likely to be ultimately secured against the clubs revenue streams. We are not talking about personal wealth being used to subsidise the club (as it has in the past) we are talking about bank financing and the clubs revenues being used to repay.

Have I missed something, but arent the Americans and DIC essentially likely to finance the club the same way just in maybe slightly different packaging ?

As such why would they be any better, discuss.....

YNWA

Good post. I don't think this has been discussed enough.

IMO, DIC puts off the day when we get another G+H scenario arising at the club (when DIC decide to sell off) and we worry about the type of owners we might have. Of course, by then we might have become the biggest club in the World ....

[Morten_nogamst_Pedersen]

We hope DIC will be pumping enough money into the club for us to be succesfull, despite us paying a hell of a lot on the loan annually.
And we think they actually are LFC supporters (some of them)

[Tom]

Lets go on record. Lets deal with what the current owners have promised to do and not deliver. No we don't know what DIC will do, but on performance and record alone the yanks have got to go.

What we know about DIC, run by a liverpool fan, friend of Parry's, at Istanbul, and at Liverpool Uni in the 80s. Regularily goes to matches. DIC unlimited liquidity.

Agreed we don't know what DIC plans for the club will be, but the US duo are leading us toward disaster. On that basis any escape route has to be taken.

[Barndoor]

Tom,

Your points are acknowledged and your contributions always read by me. I think that DIC would be better owners than the Americans but I just wanted to see the fans views and make sure that people have their eyes open about what DIC may bring...

[sean_lfc]

Very good points raised Barndoor, I'm not really knowledgable enough about the whole financial deals but you do seem to raise some good food for thought.

[Barndoor]

Thanks Sean, sadly for me its my job......

[sean_lfc]

It does sound like you know what you're talking about (generally speaking) and yes, you have my full sympathy in having to work in said environment But I bet, deep down, you really love your job

[Barndoor]

Aye it can be interesting and fun, but it still doesnt feel right coming to work in the morning thoroughly depressed by the ongoing sagas at Anfield.....

[bobbyfallon]

my reasoning to get the yanks out is their persistent lying and loud mouth approach in the media. they have already done irepairable damage IMO.

DIC will inevitably take out loans etc to bankroll the club possibly similar to the yanks, however, they will have no probem getting them sorted quickly and without controversy.

if needs be (inevitable for first few years) DIC will have to bankroll players for coming seasons as club income will be used to cover loan repayments.

all in all, DIC are proven to be successful in pretty much everything they have done (to the best of my knowledge).

if they want out after 7 years thats ok by me if they have brought us back to the top where we all know we belong. a knew stadium is essential and im sure they will deliver that sooner rather than later.

if G+H stay in contol our name will be dragged further through the mud and to be honest i dont know where it would all end.

DIC or G+H ???? not that difficult really is it

[Cormack74]

Good post Barndoor.

I'm in no way pro G&H and it seems that our only possible salvation happens to be what is effectively Hobson's choice.

However most people would take that currently and it's hard to argue against on the evidence to date.

[Barndoor]

For all the reasons you stated I agree that DIC are a better fit the G&H.

My point was solely in relation to the financing aspect. From my perspective I dont think the financing of the club post acqusition and completion of the new stadium etc will be that much different bteween either G&H or DIC, although as you point out DIC probably have a better reputation for getting it done, which will help in the current climate.

[Graybach]

Been thinking about this myself for a while, not the whole 'will they finance the club differently to G & H etc' but in general would they be better owners?

We constantly hear how the Yanks don't understand football and the markets and so on which makes me think 'well DIC don't either'!

What we have seen is that the Yanks are full of **** and seem to think that we're stupid and will believe everything they say. When they came they were full of promise and have delivered nothing. Even Torres and Babel don't really count because they want to put the cost of them on the loan!!

They showed the world the amazing new stadium they were going to build and then went on to tell us they couldn't afford it.

All they've done is turn us into a laughing stock!

If we're taken over by DIC it may well be a case of out of the fire into the frying pan but surely it couldn't be any worse than the Yanks raping us. Being taken over by DIC and the unknown is a gamble well worth taking IMO, it surely can't be any worse than Yankee ****in Doodle!

Moving onto DIC I don't know much about them, only what I've read on the net and in the papers etc. I'm forming the opinion that when they apply themselves to a project they seem to get it right and make it better than their opposition's.

When they build a hotel, they make it the best in the world!

When they buy/train race horses they're the best!

They seem to be winners, can the same be said of G & H? How are their other teams doing in their respective competitions?

As said many times DIC are run by a Liverpool fan, could be useful.

They would not want to tarnish their reputation one bit and therfore I think that they would be the best thing to happen to LFC since May 25th 2005