The Case FOR Hicks

[Tee]

And Dunk

What about Steve?? .. and the 'girl' from their office...

[Reece]

What about Steve?? .. and the 'girl' from their office...

I'm going to stop now before I say something out of line

[Guest]

I'm going to stop now before I say something out of line

Rich T ?

[Parr_Zee]

How enhanced are the profits going to be? £30m more than previous years? How?

With a bigger stadium, more and bigger sponsorship deals, and better use of the markets that we have not fully tapped into ... like Asia (as Hicks mentions).

I thought thats what Hicks outlined in the interview

[fred_plasticine]

According to Forbes Magazine 2007, Tom Hicks has an estimated wealth of $1.3 billion USD. Today that is worth GBP 820 million. That's his lot. The US is in recession so his income is likely to take a big hit this year. You think he can put anything else into LFC? He'll be lucky if he can pay the mortgage.

i think he's able to get a few minority investors in with him holding a little more than 50% ... that's what he's trying to do at the moment according to that interview.

[Sarb]

Jesus. None of us are supporting Hicks, it's just we are choosing not to call for him to face the firing squad like most are. Are we not allowed to take the middle ground?

How many times do I have to explain this to you?

Funny, I don't remember mentioning your name Reece. Why are you getting so touchy for????

[fred_plasticine]

With a bigger stadium, more and bigger sponsorship deals, and better use of the markets that we have not fully tapped into ... like Asia (as Hicks mentions).

I thought thats what Hicks outlined in the interview

[Parr_Zee]

With a bigger stadium, more and bigger sponsorship deals, and better use of the markets that we have not fully tapped into ... like Asia (as Hicks mentions).

I thought thats what Hicks outlined in the interview

Just had a look at shirt sponsorship and Man Utd and Chelsea make twice what we do from shirt sponsorship every season ... even Spurs make more than us ffs.

[Craig_H]

With a bigger stadium, more and bigger sponsorship deals, and better use of the markets that we have not fully tapped into ... like Asia (as Hicks mentions).

I thought thats what Hicks outlined in the interview

But the bigger stadium isnt going to suddenly appear overnight is it? So for what's likely to be 3 or 4 years, how is the profit going to be enhanced to a level to ensure the interest payments are serviced AND to ensure that we still have a proper transfer budget?

Same thing applies to sponsorship deals, you cant just tipex out the current deals, and you wont be milking hundreds of millions of pounds out of Asia overnight either.

[Craig_H]

See my reply above.

[Guest]

But the bigger stadium isnt going to suddenly appear overnight is it? So for what's likely to be 3 or 4 years, how is the profit going to be enhanced to a level to ensure the interest payments are serviced AND to ensure that we still have a proper transfer budget?

Same thing applies to sponsorship deals, you cant just tipex out the current deals, and you wont be milking hundreds of millions of pounds out of Asia overnight either.

Mate, I was thinking the same thing a couple of months ago. Even with an investor with much bigger resources than Tom Hicks, I don't think it would have made much difference! DIC is an independent company. It doesn't mean it would shift some of it's money in just for the sake of buying players !? Even if they do, they'll probably be making money on it, as interests over their loan.

[Craig_H]

Mate, I was thinking the same thing a couple of months ago. Even with an investor with much bigger resources than Tom Hicks, I don't think it would have made much difference! DIC is an independent company. It doesn't mean it would shift some of it's money in just for the sake of buying players !? Even if they do, they'll probably be making money on it, as interests over their loan.

DIC wouldnt have us paying £30m interest payments each year, their financial position is stronger and they'd get a better deal on any borrowings. Furthermore, they're capable of underwriting interest payments if it was required, even on a temporary basis. Hicks cant and wouldnt do that.

Basically, with Hicks, we're playing on the edge. His financial position is vulnerable and he's being stretched. Dangerous game. All it'd take is one year outside the top four and you'd soon see top players being sold to service the debt. DIC wouldnt need to resort to that.

[dom9]

I didnt because it's purely speculative. 'If enhanced profits cover the interest payments, and allow for the required investment in the squad, that is a good thing, no?' - until i see a realistic outlook on how that would happen, there's little point answering it, because it's academic. How enhanced are the profits going to be? £30m more than previous years? How?

And to then also allow for the required investment into the squad, they'd need to be in the region of about £70m per annum (£30m interest plus £40m each summer for transfers).

Our operating profit last year was in the region of £43m and if Hicks is the sort of person who is capable of turning £43m profit into £70m+ levels of profit, then i doubt he'd be struggling to raise the funds required to buy out Gillett.

In short, there's no way that enhanced profits could cover the interest payments, and allow for the required investment in the squad.

Just about everything on this forum is purely speculative. That is why I'm not jumping on any bandwagons.

People are coming to all sorts of conclusions, based on a very public and hugely embarrassing war of spin in the media.

However, it is clear that the club is earning nowhere near the amount of money as it should be. We are all agreed on that. Even Chelsea, with a fanbase a fraction of ours earn more money as a club.

[dom9]

But the bigger stadium isnt going to suddenly appear overnight is it? So for what's likely to be 3 or 4 years, how is the profit going to be enhanced to a level to ensure the interest payments are serviced AND to ensure that we still have a proper transfer budget?

Same thing applies to sponsorship deals, you cant just tipex out the current deals, and you wont be milking hundreds of millions of pounds out of Asia overnight either.

Agreed - it will take at least 5 years to realise the potential profit from the club. In the meantime, investment is required. That can come from a billionaire, or it can be borrowed against future income.

[fred_plasticine]

But the bigger stadium isnt going to suddenly appear overnight is it? So for what's likely to be 3 or 4 years, how is the profit going to be enhanced to a level to ensure the interest payments are serviced AND to ensure that we still have a proper transfer budget?

Same thing applies to sponsorship deals, you cant just tipex out the current deals, and you wont be milking hundreds of millions of pounds out of Asia overnight either.

it all depends on the re-financing deal. we might pay less the first few years and start paying much more once the stadium is in place. it's a tough case to argue as i'm not educated enough on that matter which makes it twice as hard for a non-native speaker like me.
put short, the important thing is whether the re-financing deal is profound and has plans a, b and c in place, that is all eventualities covered.