Fancy Buying 25% Of Liverpool For £100m?

[kingfunk]

Tom Hicks has reportedly instructed Merrill Lynch to find a buyer for 25% of Liverpool to fund the building of a new stadium.

Although the club is valued at £500m, investors would get a quarter of the business for just £100m, according to The Guardian.

They are apparently targeting potential Middle East investors willing to take on a a share of the current £310m debt, though that is set to be reduced to £250m under the terms of the latest refinancing deal.

Hicks and his co-owner George Gillett have been making noises all week about the strong financial state of the club, boosted by a new £20m-a-year sponsorship deal with Standard Chartered Bank.

Gillett said: "The club is in outstanding shape. Economically, it's never been stronger. We just paid down our debt very substantially. We have less debt per dollar than any club in the league."

http://www.football365.com/story/0,17033,8652_5564851,00.html

[ntto]

i guess we'll see how serious these supporter groups are now

[Scratch]

Lies, it's all lies!!!

[kingfunk]

Tony Barrett's version.

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From The Times
September 17, 2009
Tom Hicks starts to intensify search for Liverpool investors in Middle East
Tony Barrett

Financiers acting on behalf of Tom Hicks, the Liverpool co-owner, have offered a minority stake in the club to potential investors in the Middle East.

Merrill Lynch, the investment bank, has been instructed by Hicks, who is recovering from a hip operation, to open and conduct negotiations with interested parties with a view to selling a 25 per cent share in the club at a price of £100 million as Liverpool continue attempts to reduce their levels of debt.

Although wealthy individuals and organisations in the Middle East have been sounded out about the possibility of buying into Liverpool, none have indicated that they would be willing to enter into what would become a three-way shared ownership venture featuring Hicks, George Gillett Jr, his co-owner, and a third party.

Liverpool will require substantial success at home and abroad if they are to realise the full potential of their lucrative new sponsorship deal with Standard Chartered, the London-based international bank.
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Under the terms of the agreement, Liverpool have the potential to earn £80 million over the course of the four-year deal, which begins next July. But The Times understands that a significant element of the deal is performance-related with bonuses to be paid out to the club should they win either the Barclays Premier League or the Champions League.

Liverpool’s annual income from Standard Chartered is not dependent on qualification for the Champions League, but only by being in that competition will they stand a chance of receiving the full £20 million a season on offer.

Standard Chartered is delighted with its newly forged association with Liverpool. It believes that paying to have its brand name displayed on the shirts of Britain’s most successful club is a wise investment, particularly given the international television exposure afforded to Liverpool.

“Given how popular football is in Asia, Africa and the Middle East, where most of our business is, and Liverpool’s brand and huge fan base there, this is a great deal for both of us and a cost-effective way to raise our name recognition and drive growth,” the bank said. “We can’t wait to have Standard Chartered on the millions of Liverpool shirts sold every year.”

http://www.timesonline.co.uk/tol/sport/football/premier_league/liverpool/article6837483.ece

[kingfunk]

It will be 33% next, then 50%, The ball is rolling.

[dom9]

This values the club at £400M then.

[Tee]

It will be 33% next, then 50%, The ball is rolling.

Fingers crossed someone with genuine financial clout can see the lomg term potential and get their foot in the door. Hopefully this will be the beginning of the end for the liars.

[Vermilion]

Fingers crossed someone with genuine financial clout can see the lomg term potential and get their foot in the door. Hopefully this will be the beginning of the end for the liars.

and

[Le Chef]

PhilMcNulty said pretty much the same last night

[Pacman]

Fingers crossed someone with genuine financial clout can see the lomg term potential and get their foot in the door. Hopefully this will be the beginning of the end for the liars.

Wait for Fredo and the gang to turn up and tell you not to believe everything you read in the papers.

[Scratch]

Wait for Fredo and the gang to turn up and tell you not to believe everything you read in the papers.

Or that these stories have been in the papers for a good few months now, so why are they regurgitating old news?

[Pacman]

Or that these stories have been in the papers for a good few months now, so why are they regurgitating old news?

I don't know.

I don't know if the story is true or not.

The fact that Tony Barrett has reported it gives it more credability in my eyes as having spoken to him and seen him on LFC TV it is clear he is a massive red and I would think he's not the sort of Journo to spout lies just for a story.

Then again Fredo will come along and say different.

[Scratch]

No, ML have been looking for investor's since January i believe, this has been mentioned many times before...why are these stories out again? Must be because of the recent sponsership details?

[BrianF80]

Or that these stories have been in the papers for a good few months now, so why are they regurgitating old news?

We know it's old news, the stuff Lecter uploaded the other day was the prospectus from the last time they tried to drum up cash.

Why the regurgitation simply to dispel the current and increasing rumblings that the stadium won't ever be built.

[dom9]

Who can tell? None of us know. That is certain.