Rothschild retained BBC Sports Editor reveals. Any deal could surpass the $1B mark.
Only a week has passed since the Hab's owner was first linked with Liverpool Football Club when UK newspaper, the Mail On Sunday named Gillett as the ‘Mystery American Businessman’ looking to take control of one of the most storied clubs in all of world soccer. The speculation intensified yesterday, November 4th, after BBC Sports Editor Mihir Bose appeared on Oranges @ Halftime. From Bose's understanding Gillett has already tendered a bid for the English Premiership club. Furthermore Bose informed The TEAM990 that Gillett has retained one of London's most highly respected merchant banks as his advisers, NM Rothschild.
Rothschild have a track record second to none in such matters. They were lead advisers to Malcolm Glazer when he launched his successful takeover of Manchester United. Earlier this fall Rothschild advised Randy Lerner in the matter of his purchase of Aston Villa, another English Premiership Club. They are also lead advisers in a complex deal involving London club West Ham - sale of which is expected to be completed later this year. As Rothschild's website claims, "Our success comes from our leading market position, and the value and quality of our advice and products demonstrated by our strength and depth in the UK". With offices worldwide, including one locally in Montreal, NM Rothschild appear to be well placed to enable Gillett to achieve his objective.
Gillett’s bid is for outright control of the club, “Lock, stock and barrel, for the company”, Bose explained. Meaning, the Moores family, who own 51% of the company, would relinquish ownership of a club they have controlled for generations. Comparisons between the Molson family and the Canadiens are clearly evident. It has been reported the Habs owner has carried out limited due diligence. This would have allowed Gillett and his advisors to look at the company’s books and accounts. However Liverpool, have not yet granted Gillett the option for exclusive due diligence, Bose further explained. Obtaining exclusivity would allow Gillett to view the more highly regarded matters, including a thorough analysis of player contracts.
It was back in March 2004 that the Moores family headed by David Moores let it be known they wanted to cede control of Liverpool. Over this time a procession of people including a pair of Hollywood moguls, a Liverpool construction magnate and even the deposed prime minister of Thailand have been linked with a takeover. It was only this time last year that Robert Kraft, owner of the New England Patriots, issued a statement to the BBC on the matter.
However many obstacles for Gillett remain in place. A significant one involves agreement over share price. David Moores is known to be holding out for £6,000 per share, around $13,000. This would value the club at over £200M, close to $440M at today's exchange rates. Gillett is reported to not want to offer more than £4,000, or just under $9,000 per share. When Liverpool’s current debt load of approximately £80M [$175M], the cost of construction of their new stadium at £200M [$435M], along with the capital cost of player acquisition are all taken into consideration it's easy to see that any bid for overall control could in fact well exceed the $1Billion threshold. Such is the market that Liverpool operates in that Roman Abramovich the sole owner of double Premiership champions Chelsea has spent well in excess of $1Billion since he gained control of the club back in the summer of 2003. Still to this day the club has not secured soccer's Stanley Cup, a UEFA Champions League title. Rothschild, Bose confirmed, could organize financing for Gillett. In all likelihood, guarantees are already in place with a mixture of financial institutions and private individuals providing Gillett with capital.
Then there's the matter of a possible bid from a rival group Dubai Holdings. A Middle Eastern consortium controlled by the Dubai government. Who like Gillett are reported to not want to offer Moores more than £4,000 per share. It would seem though that Dubai Holdings have first mover advantage. UK media reports that in late October Liverpool CEO Rick Parry was in Dubai to meet the officer of the ruler of Dubai, his third trip to the principality in a little over 2 weeks. Bose believes there has not as yet, been any direct face to face meetings between George Gillett and David Moores. Those familiar with the deal believe Gillett’s bid is currently at the stage where meetings have taken place with Rothschild and Liverpool’s advisers Price Waterhouse.
Gillett could face resistance from the Moores family themselves. Unlike Glazer, as Manchester United was a public company listed on the London Stock Exchange the Tampa Bay Buccaneers owner gradually increased his stake in the club by purchasing shares in the open market, Gillett is unable to do this as shares in Liverpool are privately held. So if Moores does not wish to tender his shares there would be very few options left open to him. In all probability any deal would collapse.
Unlike Gillett’s offer which calls for complete control of the company Dubai Holdings it seems, only want to secure a majority holding. Under this scenario Moores would have the option to retain a minority holding, something publicly the current owner has stressed he favours, with Parry perhaps remaining at the club in some capacity. As the Liverpool board and their team of advisers comb through any offer documents consideration would be given to Gillett’s highly diversified business interests that, intriguingly for the club, include a highly successful entertainment arm. With sport and entertainment closely entwined this major subsidiary of Gillett's business machine could be attractive to Liverpool as they look to ancillary revenue streams as ways to reduce the gap with market leader Manchester United.
A possible concern for Dubai Holdings and which could provide an advantage to Gillet is the Dubai government's involvement with Emirates, an airline based in the Gulf State. More specifically Emirates investment with Arsenal, a rival for Liverpool in the English Premiership. Their investment calls for Arsenal to receive from the airline in excess of $200M in return for a combination of jersey sponsorship and stadium naming rights. This could infer undue influence, even a conflict of interest. With such vast sums of money on offer though Gillett is surely envisioning the days that jersey sponsorship becomes the norm in the NHL.
With Malcolm Glazer owner of the Tampa Bay Buccaneers taking control of Manchester United last year and last month’s deal which saw Cleveland Browns owner Randy Lerner purchase Aston Villa a trend is developing whereby owners of North American sports franchises have identified the very lucrative English Premiership as their vehicle of choice to further expand their sporting empires.
When contacting the Bell Centre over the weekend The TEAM990 were advised that Mr. Gillett was out of the country. To this point the Habs owner has turned down all interview requests on the matter. However a statement from Gillett or movement in some form could shortly be forthcoming. So far Liverpool have neither returned calls or emails in regard to George Gillett. With their AGM taking place within the next 2 months the sale of the club will again dominate.
It's expected that any deal involving Gillett and Liverpool would require approval from the NHL Board of Governors. Before that, Gillett, a renowned and accomplished dealmaker, has the fight of his life on his hands. The prize on offer? quite simply, one of the most prestigious brands in all of sport, Liverpool Football Club.
http://www.team990.com/sports.ch2?id=12995
Only a week has passed since the Hab's owner was first linked with Liverpool Football Club when UK newspaper, the Mail On Sunday named Gillett as the ‘Mystery American Businessman’ looking to take control of one of the most storied clubs in all of world soccer. The speculation intensified yesterday, November 4th, after BBC Sports Editor Mihir Bose appeared on Oranges @ Halftime. From Bose's understanding Gillett has already tendered a bid for the English Premiership club. Furthermore Bose informed The TEAM990 that Gillett has retained one of London's most highly respected merchant banks as his advisers, NM Rothschild.
Rothschild have a track record second to none in such matters. They were lead advisers to Malcolm Glazer when he launched his successful takeover of Manchester United. Earlier this fall Rothschild advised Randy Lerner in the matter of his purchase of Aston Villa, another English Premiership Club. They are also lead advisers in a complex deal involving London club West Ham - sale of which is expected to be completed later this year. As Rothschild's website claims, "Our success comes from our leading market position, and the value and quality of our advice and products demonstrated by our strength and depth in the UK". With offices worldwide, including one locally in Montreal, NM Rothschild appear to be well placed to enable Gillett to achieve his objective.
Gillett’s bid is for outright control of the club, “Lock, stock and barrel, for the company”, Bose explained. Meaning, the Moores family, who own 51% of the company, would relinquish ownership of a club they have controlled for generations. Comparisons between the Molson family and the Canadiens are clearly evident. It has been reported the Habs owner has carried out limited due diligence. This would have allowed Gillett and his advisors to look at the company’s books and accounts. However Liverpool, have not yet granted Gillett the option for exclusive due diligence, Bose further explained. Obtaining exclusivity would allow Gillett to view the more highly regarded matters, including a thorough analysis of player contracts.
It was back in March 2004 that the Moores family headed by David Moores let it be known they wanted to cede control of Liverpool. Over this time a procession of people including a pair of Hollywood moguls, a Liverpool construction magnate and even the deposed prime minister of Thailand have been linked with a takeover. It was only this time last year that Robert Kraft, owner of the New England Patriots, issued a statement to the BBC on the matter.
However many obstacles for Gillett remain in place. A significant one involves agreement over share price. David Moores is known to be holding out for £6,000 per share, around $13,000. This would value the club at over £200M, close to $440M at today's exchange rates. Gillett is reported to not want to offer more than £4,000, or just under $9,000 per share. When Liverpool’s current debt load of approximately £80M [$175M], the cost of construction of their new stadium at £200M [$435M], along with the capital cost of player acquisition are all taken into consideration it's easy to see that any bid for overall control could in fact well exceed the $1Billion threshold. Such is the market that Liverpool operates in that Roman Abramovich the sole owner of double Premiership champions Chelsea has spent well in excess of $1Billion since he gained control of the club back in the summer of 2003. Still to this day the club has not secured soccer's Stanley Cup, a UEFA Champions League title. Rothschild, Bose confirmed, could organize financing for Gillett. In all likelihood, guarantees are already in place with a mixture of financial institutions and private individuals providing Gillett with capital.
Then there's the matter of a possible bid from a rival group Dubai Holdings. A Middle Eastern consortium controlled by the Dubai government. Who like Gillett are reported to not want to offer Moores more than £4,000 per share. It would seem though that Dubai Holdings have first mover advantage. UK media reports that in late October Liverpool CEO Rick Parry was in Dubai to meet the officer of the ruler of Dubai, his third trip to the principality in a little over 2 weeks. Bose believes there has not as yet, been any direct face to face meetings between George Gillett and David Moores. Those familiar with the deal believe Gillett’s bid is currently at the stage where meetings have taken place with Rothschild and Liverpool’s advisers Price Waterhouse.
Gillett could face resistance from the Moores family themselves. Unlike Glazer, as Manchester United was a public company listed on the London Stock Exchange the Tampa Bay Buccaneers owner gradually increased his stake in the club by purchasing shares in the open market, Gillett is unable to do this as shares in Liverpool are privately held. So if Moores does not wish to tender his shares there would be very few options left open to him. In all probability any deal would collapse.
Unlike Gillett’s offer which calls for complete control of the company Dubai Holdings it seems, only want to secure a majority holding. Under this scenario Moores would have the option to retain a minority holding, something publicly the current owner has stressed he favours, with Parry perhaps remaining at the club in some capacity. As the Liverpool board and their team of advisers comb through any offer documents consideration would be given to Gillett’s highly diversified business interests that, intriguingly for the club, include a highly successful entertainment arm. With sport and entertainment closely entwined this major subsidiary of Gillett's business machine could be attractive to Liverpool as they look to ancillary revenue streams as ways to reduce the gap with market leader Manchester United.
A possible concern for Dubai Holdings and which could provide an advantage to Gillet is the Dubai government's involvement with Emirates, an airline based in the Gulf State. More specifically Emirates investment with Arsenal, a rival for Liverpool in the English Premiership. Their investment calls for Arsenal to receive from the airline in excess of $200M in return for a combination of jersey sponsorship and stadium naming rights. This could infer undue influence, even a conflict of interest. With such vast sums of money on offer though Gillett is surely envisioning the days that jersey sponsorship becomes the norm in the NHL.
With Malcolm Glazer owner of the Tampa Bay Buccaneers taking control of Manchester United last year and last month’s deal which saw Cleveland Browns owner Randy Lerner purchase Aston Villa a trend is developing whereby owners of North American sports franchises have identified the very lucrative English Premiership as their vehicle of choice to further expand their sporting empires.
When contacting the Bell Centre over the weekend The TEAM990 were advised that Mr. Gillett was out of the country. To this point the Habs owner has turned down all interview requests on the matter. However a statement from Gillett or movement in some form could shortly be forthcoming. So far Liverpool have neither returned calls or emails in regard to George Gillett. With their AGM taking place within the next 2 months the sale of the club will again dominate.
It's expected that any deal involving Gillett and Liverpool would require approval from the NHL Board of Governors. Before that, Gillett, a renowned and accomplished dealmaker, has the fight of his life on his hands. The prize on offer? quite simply, one of the most prestigious brands in all of sport, Liverpool Football Club.
http://www.team990.com/sports.ch2?id=12995
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