Not sure how true this is, but it's certainly different to what we're expecting from the DIC takeover.
Buyers plan to sell Liverpool in seven years
By Mihir Bose
Last Updated: 11:44pm GMT 26/12/2006
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Liverpool, who are being bought by an investment company effectively owned by the Dubai government, could be sold again in seven years' time, according to a confidential document seen by The Daily Telegraph.
The document also reveals that Dubai International Capital are planning to borrow up to £300 million to finance their £450m purchase of the club.
DIC see their investment in Liverpool as purely a business deal built round the new stadium Liverpool are planning at Stanley Park. When they sell in seven years' time they are hoping to make a huge profit, providing a return of around 25 per cent on their investment for every year of ownership. There appear to be no plans to invest in new players.
Furthermore, DIC will not be the sole owners of Liverpool, unlike Roman Abramovich at Chelsea, the Glazers at Manchester United and Randy Lerner at Aston Villa. Although their deal to buy Liverpool is not yet signed and sealed, they are already looking for other investors to join them in a partnership. I understand that 30 per cent of the 90 per cent stake DIC are bidding for is being offered to City investors.
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The seven-page document, which outlines the investment rationale, has been circulated to major City investors to attract them to join the consortium.
DIC have said little about why they want to buy Liverpool, but with the company ultimately owned by the fabulously wealthy Al Maktoum family, who are the ruling family of Dubai, the purchase has been seen as Liverpool's equivalent of Abramovich arriving at Chelsea, the investor with deep pockets that all football clubs crave.
Indeed, that is the reason David Moores, the chairman of Liverpool, gave for choosing DIC over George Gillett, the American who owns the Montreal Canadiens ice hockey team and is very keen to buy Liverpool.
However, anyone reading the document can have no doubt that this is purely an investment decision. And with DIC seeking partners, there is also no knowing who else will be in the Liverpool boardroom.
The great investment opportunities that Liverpool provide, as DIC see it, are set out in a section entitled "The Opportunity". The document says: "Opportunities exist to boost returns by unlocking 'hidden' value. We believe there is potential for multiple arbitrage if real estate/leisure is developed on the current Anfield site. Such an investment would allow the Middle East region to leverage on a strong brand with an equally strong international fan base."
The document tells potential investors that over the next five years a return starting at 19.3 per cent could rise to 29 per cent in year five.
One of the most revealing insights is when the document talks of how the financing will be done. A whole page is devoted to it and shows that three banks – Bank of Ireland, RBS and Bank of America – have been approached, with Bank of America the favourite.
It is clear that the new stadium is at the heart of this deal. The budget for the stadium is £240m; Liverpool want a fixed-price contract like Wembley and want penalties of £950,000 per week if the contractor is late.
The DIC document notes that the stadium, which will seat 61,000, will cost less per seat than Arsenal's Emirates Stadium. The document also provides a wonderful insight into DIC's thinking but is very different from the fans' expectations about this purchase – and would have been very different from the purchase of the club by Gillett.
http://www.telegraph.co.uk/sport/mai...7/sfnliv27.xml
Buyers plan to sell Liverpool in seven years
By Mihir Bose
Last Updated: 11:44pm GMT 26/12/2006
In pics: Premiership action
Your View: Football fans' forum
Liverpool, who are being bought by an investment company effectively owned by the Dubai government, could be sold again in seven years' time, according to a confidential document seen by The Daily Telegraph.
The document also reveals that Dubai International Capital are planning to borrow up to £300 million to finance their £450m purchase of the club.
DIC see their investment in Liverpool as purely a business deal built round the new stadium Liverpool are planning at Stanley Park. When they sell in seven years' time they are hoping to make a huge profit, providing a return of around 25 per cent on their investment for every year of ownership. There appear to be no plans to invest in new players.
Furthermore, DIC will not be the sole owners of Liverpool, unlike Roman Abramovich at Chelsea, the Glazers at Manchester United and Randy Lerner at Aston Villa. Although their deal to buy Liverpool is not yet signed and sealed, they are already looking for other investors to join them in a partnership. I understand that 30 per cent of the 90 per cent stake DIC are bidding for is being offered to City investors.
advertisement
The seven-page document, which outlines the investment rationale, has been circulated to major City investors to attract them to join the consortium.
DIC have said little about why they want to buy Liverpool, but with the company ultimately owned by the fabulously wealthy Al Maktoum family, who are the ruling family of Dubai, the purchase has been seen as Liverpool's equivalent of Abramovich arriving at Chelsea, the investor with deep pockets that all football clubs crave.
Indeed, that is the reason David Moores, the chairman of Liverpool, gave for choosing DIC over George Gillett, the American who owns the Montreal Canadiens ice hockey team and is very keen to buy Liverpool.
However, anyone reading the document can have no doubt that this is purely an investment decision. And with DIC seeking partners, there is also no knowing who else will be in the Liverpool boardroom.
The great investment opportunities that Liverpool provide, as DIC see it, are set out in a section entitled "The Opportunity". The document says: "Opportunities exist to boost returns by unlocking 'hidden' value. We believe there is potential for multiple arbitrage if real estate/leisure is developed on the current Anfield site. Such an investment would allow the Middle East region to leverage on a strong brand with an equally strong international fan base."
The document tells potential investors that over the next five years a return starting at 19.3 per cent could rise to 29 per cent in year five.
One of the most revealing insights is when the document talks of how the financing will be done. A whole page is devoted to it and shows that three banks – Bank of Ireland, RBS and Bank of America – have been approached, with Bank of America the favourite.
It is clear that the new stadium is at the heart of this deal. The budget for the stadium is £240m; Liverpool want a fixed-price contract like Wembley and want penalties of £950,000 per week if the contractor is late.
The DIC document notes that the stadium, which will seat 61,000, will cost less per seat than Arsenal's Emirates Stadium. The document also provides a wonderful insight into DIC's thinking but is very different from the fans' expectations about this purchase – and would have been very different from the purchase of the club by Gillett.
http://www.telegraph.co.uk/sport/mai...7/sfnliv27.xml
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