Worrying Article about DIC's intentions

[Redlife]

Well whether Parry and co knew or not, they do now. And they'll know whether it's true or not.



As Kopdan says, we'll only know in time.

[Diego]

Investment groups like this buy struggling companies, turn them into profitable enterprises, then sell them on for a profit.

At the moment, LFC does not make a whole load of money. Commercially, LFC is a bit of a joke - how many times do people moan on here about the lack of marketing nouse from those runnning the club.

What DIC want is to turn LFC into a business a bit like Man Utd in the 90s. If the business becomes profitable, DIC will get some return on their investment in the form of dividends, and more money will be available for players.

If in 7 years time, LFC is making as much money as Man Utd or Real Madrid, DIC will sell their stake, which will be worth significantly more than it is now. To me, the rate of return mentioned in the article relates to the projected value of the club in 7 years, rather than the profit they want to make from the day to day business.

This all makes sound commercial sense to me.

People here have also jumped on this quote

"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.

[FatTony]

A DIC source said:
"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.

The above two quotes say to me that the deal is done (there's no ifs or buts).

I said it before and I'll say it again, the Telegraph article is nothing more than a london based rag trying to send out negative vibes for a takeover that will see LFC challenge their beloved Chelski.

[The Glove]

'No Liverpool sell-off planned' by Dubai investors Dec 28 2006




EXCLUSIVE by Jessica Shaughnessy, Liverpool Daily Post Staff





SOURCES close to the Dubai company poised to buy Liverpool FC last night denied claims it was already drawing up plans to sell the club within seven years.

The source at Dubai International Capital told the Liverpool Daily Post: "There are no plans to exit an acquisition we have not even bought yet."

Figures within the company, which is ultimately owned by the rulers of Dubai, also insisted that it hoped to start work on Liverpool's new stadium early next year.

They spoke out in the wake of national newspaper speculation that DIC only planned to keep hold of Liverpool for seven years before selling it on at a profit. It was also claimed that there appeared to be no plans to invest in new players.

The reports also claimed DIC planned to borrow £300m of the money needed, and that the priority would be for a 25% return on investment each year.

Last night, a source at DIC told the Daily Post: "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.

"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.

"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."





Walton Labour MP Peter Kilfoyle last night said he had met senior executives of DIC and is confident they are making a longterm commitment to the club.

Mr Kilfoyle insisted that the investment arm of the Dubai government, led by Sheikh Mohammed Maktoum, were not "messing around".

He said: "These are not people who want to just dabble in football. They tote around huge sums of money for the stability of their country.

"One of the senior vice presidents of DIC has been a Liverpool fan for more than 30 years and they are very excited about everything."

Mr Kilfoyle has met representatives of DIC, including a senior vice president, to discuss the regeneration of Liverpool and the impact a new stadium will have on the area.

He said: "They were very keen to get involved, and were happy to listen to what I had to say, and we will be meeting again. It's not just about the club, it is the knock-on effects for the whole area and they understood that. They are not philanthropists, they are business people, but they are serious about doing it properly.

"They seemed to understand that the best thing for Liverpool FC and Merseyside is to secure a deal which is good for the long-term future."

The national newspaper speculation appears to be based around a document which indicates a resale in 2014.

The claims came weeks after the chief executive of the North West Development Agency, (NWDA) Stephen Broomhead, labelled the takeover "great news" but insisted that DIC must also make a long-term commitment to regeneration in Anfield alongside their purchase.

He said: "Any guarantee that the stadium can go ahead is good news for the regeneration of the city and the football club, but we would like to sit down with the new owners to make sure all issues are sorted out."

The leader of Liverpool City Council, Warren Bradley, said last night: "There is no real evidence to support these claims, a re-sale could just be one option.

"But a long-term commitment is the best thing for the club and for the city.

"It's something the club's board needs to clear up."

[dom9]

The above two quotes say to me that the deal is done (there's no ifs or buts).

I said it before and I'll say it again, the Telegraph article is nothing more than a london based rag trying to send out negative vibes for a takeover that will see LFC challenge their beloved Chelski.

Nonsense.

Do you really think Mihir Bose supports Chelsea, Arsenal, Charlton and West Ham just because they are London clubs?

Take your head out of your paranoid backside.