Tom Hicks Talks

[cream]

You are Right. I also Think about the new stadium that there isn't a Club in the world at the moment that can afford to Build a new stadium in the Financial Crisis. Even if it was remotely Possible, No-one in the right mind would do it.

Not quite true. Football clubs (the big ones) are are pretty immune from the recession and are making more money than ever. Whether the banks will lend the yanks money is another matter, but this is the absolute right time to build a stadium.

[dom9]

Not quite true. Football clubs (the big ones) are are pretty immune from the recession and are making more money than ever. Whether the banks will lend the yanks money is another matter, but this is the absolute right time to build a stadium.

It is not the right time if the finance is not available (see my previous post).

People with deep pockets have been really stung by this recession, so the liquidity to build a stadium does not generally exist, and if it did, it could well be financial suicide.

Can you afford to buy a house with cash? If you can, I would advise you to do it, but I would be surprised.

[Molby]

Yes and no.

Had the takeover happened in the last 15 years, the economy was such that the business model would have worked.

Hicks has said that this is the worst downturn he has known. He will ride it out, becuase he, like most people, knows that the economy will pick up again at some point. It always does. Boom and bust is the reality of the situation. He is sitting tight until that happens.

Whether that is right or wrong is where most people diagree, but those, I think are the facts, in simple terms.

There are not many people on the planet that can spunk £500m on a football club, then a further £300, on a stadium out of their own pockets. Many people (not all) used to buy houses as an investment, pension even. It was their strategy because they didn't trust the stock market, or pensions system. That was their choice, and it too was based on borrowing. The recession has caught a lot of people out.

Dom - i don't know if you agree with this..........

it just irks me that these *******s have came from America to play financial games with our beloved club........ Liverpool FC is to big a part of many of our lives to see it as a financial football ( pardon the pun) that these boys can play with in the hum drum of the financial world.

All we want is a team that can do credit to our jersey and proud history that can deliver titles year after year.

I personally don't care if we turnover 100 million or 10 million.

Maybe i'm being too simplistic here, but i still believe we need to deliver rafa with the best poosible purse available to be able to out and get the very best there is out there, so we can go and get no 19,20 and 21 etc etc

[cream]

It is not the right time if the finance is not available (see my previous post).

People with deep pockets have been really stung by this recession, so the liquidity to build a stadium does not generally exist, and if it did, it could well be financial suicide.

Can you afford to buy a house with cash? If you can, I would advise you to do it, but I would be surprised.

If the finance is not available now, why will it be available in the future?

[dom9]

Dom - i don't know if you agree with this..........

it just irks me that these *******s have came from America to play financial games with our beloved club........ Liverpool FC is to big a part of many of our lives to see it as a financial football ( pardon the pun) that these boys can play with in the hum drum of the financial world.

All we want is a team that can do credit to our jersey and proud history that can deliver titles year after year.

I personally don't care if we turnover 100 million or 10 million.

Maybe i'm being too simplistic here, but i still believe we need to deliver rafa with the best poosible purse available to be able to out and get the very best there is out there, so we can go and get no 19,20 and 21 etc etc

Idealogically, I agree, as does just about everybody, but the reality is that football is a massive global business. The previous generation of 'local lad done good' owners have been completely incapable of capitalising on what seems like exponential potential capacity of this game to generate income. This has attracted investors from all over the planet.

I think this league is easily the biggest sports in the world in terms of appeal. UEFA are jealous of this and are trying to curb it at every level.

I hae been predicting a burst to this bubble for nigh on 10 years, and it is still going strong in the worst recession since the 1930s. It WILL burst one day. Nobody knows when. When it does, there will bea lot of trouble for a lot of clubs, and the industry will be subject to the kind of soul searching the banking industry and the media/governments are going through now (and even there are no answers, or even strategies - it's guess work, so what chance football clubs?).

Sometimes I wish I supported a non league team, or a team in a sport like rugby or cricket, because, jealous as they might be of the top football clubs, they actually value the essence of competive sport (and survival) above all else.

[dom9]

If the finance is not available now, why will it be available in the future?

The banks are not lending. In fact they are calling in debts.

[Molby]

Idealogically, I agree, as does just about everybody, but the reality is that football is a massive global business. The previous generation of 'local lad done good' owners have been completely incapable of capitalising on what seems like exponential potential capacity of this game to generate income. This has attracted investors from all over the planet.

I think this league is easily the biggest sports in the world in terms of appeal. UEFA are jealous of this and are trying to curb it at every level.

I hae been predicting a burst to this bubble for nigh on 10 years, and it is still going strong in the worst recession since the 1930s. It WILL burst one day. Nobody knows when. When it does, there will bea lot of trouble for a lot of clubs, and the industry will be subject to the kind of soul searching the banking industry and the media/governments are going through now (and even there are no answers, or even strategies - it's guess work, so what chance football clubs?).

Sometimes I wish I supported a non league team, or a team in a sport like rugby or cricket, because, jealous as they might be of the top football clubs, they actually value the essence of competive sport (and survival) above all else.

Thanks for the reply Dom,

Agree totally.

Maybe it just the third glass of wine that i've just had that's talking !!

It would be easier to follow a chess team or something like that, but for many thousands like me and you, LFC is in our blood. That won't change.

I just wish we all had the answers........

[dom9]

Thanks for the reply Dom,

Agree totally.

Maybe it just the third glass of wine that i've just had that's talking !!
It would be easier to follow a chess team or something like that, but for many thousands like me and you, LFC is in our blood. That won't change.

I just wish we all had the answers........

One behind me then

Seriously though, there are no answers. A lot of people through sheer frustration, spout o alot of nonsense about the owners, the situation we're in, and such like. That is understandable.

I'm sure a lot of people on this site think that I stick up for the owners too much. That's fine, but I don't.

[cream]

The banks are not lending. In fact they are calling in debts.

Why do people think things are suddenly going to get better in the future?

The banks will lend if the investment is sound, be it now or be it next year or two years after. Construction is suffering because people aren't buying houses/apartments, businesses are not buying/renting office/retail/warehouse space but a new stadium will be pretty much full week in, week out so shouldn't have have a problem attracting finance, so why can't G+H raise the finance, especially when it'll be cheaper to build the stadium now?

[Craig_H]

There's the truth then there's the truth.



YA'RLY? Haven't they renegotiated their terms lately?

Fredo seriously, what are you on about?

Renegotiating terms doesnt mean they can miss a payment in future, does it?

It doesnt guarantee anything. If they **** up a future repayment, administration is a very realistic prospect.

Basically, we're at the mercy of the banks here, because the yanks lied and DID put the debt on the club, after promising they wouldnt. Their lies have put us in a precarious position and we were never in this position under moores, who actually spent his own money, rather than refusing to put his hand into his own pocket and instead deciding that holding out the begging bowl to every lending institution going was a better route.

[dom9]

Why do people think things are suddenly going to get better in the future?

The banks will lend if the investment is sound, be it now or be it next year or two years after. Construction is suffering because people aren't buying houses/apartments, businesses are not buying/renting office/retail/warehouse space but a new stadium will be pretty much full week in, week out so shouldn't have have a problem attracting finance, so why can't G+H raise the finance, especially when it'll be cheaper to build the stadium now?

The banks are not lending through paranoia really. There is demand for lending, but not supply.

[cream]

The banks are not lending through paranoia really. There is demand for lending, but not supply.

I can see why when it comes to dealing with the yanks.

[dom9]

I can see why when it comes to dealing with the yanks.

It doesn't matter where you are from, it's the economic siutuation. They're hardly lending tom anybody at the moment. Have you tried buying a house recently? If you have, well done, but the terms are much worse than 18 months ago.

[BrianF80]

The banks are not lending. In fact they are calling in debts.

Another part to it is sponsorship money. About a 1/4 of the cost of the emirates stadium was paid for by various sponsorship deals. The naming rights is the obvious one but there were plenty of other deals as well. 20m from a catering company, and there were plenty of smaller deals as well. Despite our shirt deal, that market is flat as well.

[RedReet]

Not sure if it's been posted yet...

Chrisian Purslow: Key negotiator

Liverpool are pursuing a £240million naming rights deal to finally kickstart their troubled move to Stanley Park.

Carlsberg's 18-year shirt sponsorship with the Reds ends next year.

But the Danish beer brewers are prepared to match the £100m Arsenal received for a 15-year deal with Emirates.

Yet Liverpool owners Tom Hicks and George Gillett want to smash existing records, asking far more than the Gunners got in 2004.

Hicks and Gillett see the numerous examples of US stadium sponsorship deals as the blueprint for the new Anfield.

The New York Mets baseball team and New Jersey Nets Basketball side currently claim the most lucrative naming rights deals.

They both secured a 20-year contract with Citi Group and Barclays worth £240m respectively.

Both Dallas Cowboys and the New York Giants are negotiating similar returns for their new arenas. Liverpool are confident they can at least match the £12m-a-year which the top US franchises have secured, and will be looking to top them.

The club wants new partners on board well before completion of the arena, which is on hold due to the recession, but which the owners insist is merely delayed rather than cancelled.

New Reds managing director Christian Purslow sealed a record- breaking £80m shirt deal with Standard Charterd - and Hicks and Gillett know such lucrative deals are key to restoring stability at Liverpool.

The underfire Kop owners have launched a serious charm offensive over the last few days to try to win back the trust of the supporters.

Until the levels of debt at the club are reduced, they will continue to be perceived cynically for the broken promises of the past.