Worrying Article about DIC's intentions

[FatTony]

hmmm, london based journo's and papers exposing negative vibes over the takeover that could challenge their beloved Chavski. Surely not

[Chrono]

Doesn't make much sense really. You build a 60+k stadium, invest in the development of the surrounding area and then use nothing towards the purchase of new players?!? So what happens then when we have no CL games, attendance is down and have a struggling squad.

If this article is correct then it could actually be a very positive thing where Moores stays on in the same manner as before and a large slab of everything that the club pull in goes directly to Rafa whilst the money men deal with using their knowledge to make us a profitable club with our future secured.

We won't be the ones lumbered with the £300m debt. Whatever our thoughts on Parry and Moores I cannot see them letting anything like this happen.

[Rosco]

We won't be the ones lumbered with the £300m debt.

Why not ?

[Neil Young]

Indeed, but how can this journalist be aware of their intentions and Moores and Parry not know?

Maybe Mihir Bose is being used by someone else with an interest in who buys Liverpool - leaks such as this could destabilise the deal or the club or both. Alternatively maybe he just wants a scoop to (a) justify his enormous salary and/or (b) justify his overinflated reputation as someone who knows something about the business of football, especially since IIRC he wasn't the one who broke the original story.

[Chrono]

Because if we were that would mean we were borrowing against the club and we wouldn't have needed investors for that. DIC will be borrowing against their own wealth and financial partners I would imagine although I'm no expert.

[Pacman]

Maybe Mihir Bose is being used by someone else with an interest in who buys Liverpool - leaks such as this could destabilise the deal or the club or both. Alternatively maybe he just wants a scoop to (a) justify his enormous salary and/or (b) justify his overinflated reputation as someone who knows something about the business of football, especially since IIRC he wasn't the one who broke the original story.

I going with you on this one

So wise

[G]

The only way to guarantee a good return on their investment is to make the team successful on the pitch which in turn will also make the club a successful business through increased revenue from silverware,merchandising,larger fanbase etc.

If the sell in 7 years time having turned us into that I'll be well happy.

[Rosco]

Because if we were that would mean we were borrowing against the club and we wouldn't have needed investors for that. DIC will be borrowing against their own wealth and financial partners I would imagine although I'm no expert.

I doubt it.

I think the club will be borrowing for the stadium while under the control of DIC. They're not going to just give us a stadium.

The current balance sheet doesn't give us enough room to borrow money to buy the stadium, we'd be in a seriously perilous financial situation.

However with the sale of the unissued shares in the club we'll have anywhere between £65m and £90m (depending on share price) sitting on our balance sheet which gives us a lot more financial flexibility.

[ElRobbie]

The only way to guarantee a good return on their investment is to make the team successful on the pitch

I think that's the key thing we need to remember, although that statement is not entirely true that is a large part of what drives our income and revenue, more success and progress on the pitch, they will know that.

[Rosco]

I think that's the key thing we need to remember, although that statement is not entirely true that is a large part of what drives our income and revenue, more success and progress on the pitch, they will know that.

What does success on the pitch mean though ? Do you just need to qualify for the CL and get to the quarter finals ?

Or do you have to win every competition you enter ?

[JohnOK]

The one thing i don't get about the article is that it says there are no plans to invest in new players. Even if they did intend to sell in 7 years, which i doubt they would (who could afford to buy it then!!!), they would have to buy some new players because after watching that shower of **** yesterday we need a few players if we ever have any hope of winning the league.

[ElRobbie]

What does success on the pitch mean though ? Do you just need to qualify for the CL and get to the quarter finals ?

Or do you have to win every competition you enter ?

Progressing in ALL of the competitions means success on the pitch. Significantly though, what will make the biggest difference would be winning the Premiership and getting to the latter stages of the CL every season.

- Winning more games and finishing higher in the Premiership, for a start.
- The more games you play overall (in all competitions) the more revenue you make from gate receipts, matchday income, tv rights etc,
- The higher you finish in the league, the larger share you get of CL rights for the group stages.
- The more games you win in the CL, the more cash you get, the further you get, the more prize money you get.

Winning the Premiership would be massive for us in terms of revenue, not only because of additional prize money from the FA and for CL cash share, also because when we have a 61,000 stadium to fill, we are more likely to fill that in every game if were are champions and genuine title contenders, might be hard to swallow but its true, that the nature of football fans. As well as that, once we really open up the wolrd markets even more, that extra success on the pitch will make that even more profitable, it multiplies, basically, the more trophies we win, especially the big two, would massively increase our revenue, not just the prize money from that.

[Sir Bob]

I don't know why anybody would be surprised at these revelations. DIC are buying us to make money, just as Glazier bought the Mancs. DIC have no particular love of LFC and would happily have bought any club if they felt there was cash to be made. Football is a business & business is about making money. Full stop. Abramovich is a 1 off, ploughing millions in with no aim of a return. Anyone who thought DIC would follow a similar path was deluding themselves.

However, all this doesn't mean its a poor deal for LFC. Moores & Parry will have known all about this. For ANY investor, LFC is viewed 1st & foremost as a money making opportunity. Even a diehard LFC fan such as Morgan has admitted that. Once you take the money the club is in their hands to do with as they like, and if that means selling in 7 years then they will do that.

Nobody will invest & guarantee to run the club in a certain way, or not sell it on etc. If we take the cash then we take the risk of the club being sold on, whenever & to whoever, DIC decide.

[Cisseshairdresser]

Apparently there's more than one copy of this document doing the rounds. It sounds like a marketing document thats been put together by DIC to try and drum up support from other investors to join them in a partnership.

"The seven-page document, which outlines the investment rationale, has been circulated to major City investors to attract them to join the consortium".

I dunno, if you look at some of the finer details of the article it sounds like their could be some substance to this? If there were several copies circulated to "major city investors" then maybe others who recieved this document will also come forward and then we will know.

[ronan]

"providing a return of around 25 per cent on their investment for every year of ownership"

this just does not add up.