Worrying Article about DIC's intentions

[hockin_monster]

The thing is what best in world are they looking at, best football club or best football club to invest in. There is a big difference, and i`m not sure they look at the same thing as us.

The first is made with the heart and is subjective and the second is made with the head and is objective. Investment companies don't go to the casino and bet their stack on red because it's their favourite colour !!

We all know LFC is the best club in the world. That's because we talk about all the things that matter to us. Class, History, Passion, Trophies, Rich Legacy, etc, but let's not delude ourselves. If we want to retain and grow some of these areas we need to blend what is traditional with new era competitiveness. We don't have the best stadium, we aren't the best run business, we don't have the best players or the best team, we don't have a bottom less pit of money. Investment can change some of that and also give us the chance to buy/develop the best players and create the best team.

[Guest]

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.

This article is very vague to say the least. Mihir Bose states what he has seen in this document but couldn't be arsed to cover it a great length.

This statement is, in the whole, just trying to stir things up for no particular reason. If not, then why doesn't he quote for a fact that Moores preferred the DIC option over George Gillet purely based on that point alone ? I wouldn't believe for one second that Moores will be selling the club without having done his homework over and over again on that deal.

That's pure speculation for my part.

[Guest]

The first is made with the heart and is subjective and the second is made with the head and is objective. Investment companies don't go to the casino and bet their stack on red because it's their favourite colour !!

We all know LFC is the best club in the world. That's because we talk about all the things that matter to us. Class, History, Passion, Trophies, Rich Legacy, etc, but let's not delude ourselves. If we want to retain and grow some of these areas we need to blend what is traditional with new era competitiveness. We don't have the best stadium, we aren't the best run business, we don't have the best players or the best team, we don't have a bottom less pit of money. Investment can change some of that and also give us the chance to buy/develop the best players and create the best team.

At the end of the day, both parties would have to gain something from that deal. From our point of view, it's purely winning championships and all the major tournaments. Based on that, DIC's profile will be raised and the brand LFC, will undoubtedly be increased in value, meaning cash coming in, in the form of merchandise and other related revenue stream.

[paulc]

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

In pics: Premiership action
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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

come on now people...

this is a business transaction, you need to forget about it being bought out of a love for the club.. those days are gone. Football is purely business these days. they may well sell us on but so what?

[dom9]

All right, going off topic a bit then. Other than Premier Travelodge, can you name another national accommodation chain that can give you what they give you? Cheap, clean, no frills business accommodation. They do it very well. Thought, not perfect.

Yeap, DIC bought them to make cash out of them, that's the way investment works.

I actually agree with other posters on this topic. If they are going to see a 7 year return then they have to make the brand successful. Not just in the UK, but abroad as well. To do that, the ONLY way to do that, is to WIN things. It's unlikely we're going to win much consistently with what we've got, so there needs to be some investment in the product ie better players, new stadium etc.

Anyway, do you think the Glazer's bought into the Scum because of their love of Manchester and prawn sandwiches? Nah, they, like Learner and everyone else, including possibly Abramovich over a longer period, have invested to make money.

Let's quit worrying.

To answer your question, Travel Inn, a quite separate company from Travelodge. People often get the two mixed up, and you have prefixed the word Travelodge with Premier. In fact, it's the other way round: Premier Travel Inn.

The rest of your post, I agree with though.

[bazza76]

Depends on whether Moores & Parry KNOW about these intentions, assuming they were accurate.

Very true.
They dont have any guarintees about anything, just verbal agreements. They could be likely to say anything.
One thing however does make me doubt the article above. the fact that it says that there is no planned money for team investment. that in itself is such bollocks, how could someone possibly go ahead with such a high profile takeover and not invest in the most important part of it. any credible businessman would know they have to invest. And just like they have in the horses, they would have to invest in the team to see there investment bear any fruit.

[Red Chilli]

I'm worried that they will hike up the ticket prices. Lord knows the demand is there but LFc have some of the cheapest season tickets in the premiership.
I hope the club doesn't "sell out" like that. One of the easiest ways for DIC to make money is to increase ticket prices.
It would be a sad day IMO

[bazza76]

im afraid chilli, that alwasy looks like its on the cards. we are one of the cheapest as it is.

[Red Chilli]

im afraid chilli, that alwasy looks like its on the cards. we are one of the cheapest as it is.

I know, but Liverpool FC should have some of the cheapest seaso ticket prices. I hope there is some guarentee in the deal that they won't go mad with season ticket prices. I'm happy for the new seats to be sold at a higher prices but I'd hate to see current season ticket holders priced out of the stadium. As a club, we should be better than that.

[redlancer]

I recon for what its worth this is geniun but its an investment paper and one to recruit funds. For a 7 page doc there's not a lot of statements and all negative to boot, reporters choice.


statements like could sell in 7 years, going of 20% a year for 5 years would more than double the value, how hard would it be to then sell the club for 1100M plus after 5 years let alone 7 years.
Plus if your making 20% would you sell?
A 7 year project to potential investers sounds better than a lifetime project which will also be used to promote Dubai.

Anyone not thinking DIC weren't in this for the money or to use this to make money are on another planet. But why not raise funds to buy, Glaiser did and also funds transfers

This doc being an investment one won't contain transfers how the club will be ran, therefore easy to get a headline "no money for transfers"

DIC aint stupid and neither are Moores and Parry.
They'll know that to make money we have to be successfull, its not like there're buying us knowing that next years sky money bonus will cover costs and the academy with bring the success on the pitch, otherwsie they'd go for a team like bluenoses.

[kurtangle01]

"There appear to be no plans to invest in new players."

That is quite clearly the author's subjective opinion. Transfer startegy probably wasn't mentioned in the document, as it is not so relevant to investors.

I think that this statement has been taken out of contexet. Rick Parry has already alluded to it in recent interviews by saying that the club should be "self sufficient". DIC may have no plans to invest their own cash on players but it doesn't mean that the club's money can't be spent on new players.

[kurtangle01]

http://uksport.newsquest.co.uk/index.phtml?id=415920

The article seems to have been rubbished by DIC.

[Aus_LFC]

Here is an article from Fox Sports where DIC rubbish the claims made previously.

No plans for Reds sale

December 28, 2006 THE company behind the proposed takeover of English football giant Liverpool insisted today (AEDT) they would have a long-term commitment to the club and are not interested in just a quick profit.

Dubai International Capital (DIC) say they have a long-term strategy which would include funds for new players and hit back at claims in the Daily Telegraph newspaper that they plan to sell the club in 2014.

A DIC source said: "What DIC is doing is planning to make sure that, if a deal is done, Liverpool has the best possible funding in place going forward under DIC stewardship.

"This is particularly important as we would need to get on with the stadium early in 2007 and it takes time to sort out the necessary financing.

"This is also important in terms of making sure cash is available for the ongoing strengthening of the playing squad.

"Should DIC acquire the club, Liverpool will be well run, both on and off the pitch, and we are currently laying the groundwork to ensure that will be the case."

But DIC officials have pointed out they are yet to successfully conclude their takeover of the club and that, as a result, talk of plans to sell it off for profit are premature.

"DIC has not yet formally made an offer, never mind completed a deal. Certainly there are no plans to exit an acquisition we have not even bought yet," added the source.

"It (DIC) is a very serious investor with considerable resources at its disposal and the ability to take a long-term view.

"Equally, we believe that we understand the responsibilities that come with owning Liverpool Football Club. DIC has made it clear that, should a deal be concluded, it would not interfere in the day-to-day running of the club."

Agence France-Presse

[Redspin]

All right, going off topic a bit then. Other than Premier Travelodge, can you name another national accommodation chain that can give you what they give you? Cheap, clean, no frills business accommodation. They do it very well. Thought, not perfect.

Yeap, DIC bought them to make cash out of them, that's the way investment works.

I actually agree with other posters on this topic. If they are going to see a 7 year return then they have to make the brand successful. Not just in the UK, but abroad as well. To do that, the ONLY way to do that, is to WIN things. It's unlikely we're going to win much consistently with what we've got, so there needs to be some investment in the product ie better players, new stadium etc.

Anyway, do you think the Glazer's bought into the Scum because of their love of Manchester and prawn sandwiches? Nah, they, like Learner and everyone else, including possibly Abramovich over a longer period, have invested to make money.

Let's quit worrying.

Since you ask, Premier Travel Inns do all that Travelodges do, but better.

[kopdan]

why cant people wait and see before making conclusions