Buyers Waiting To Scalp Liverpool For Knockout Prices

It has all gone quiet in the
corridors of power that run deep
through Anfield. Ever since Hong
Kong businessman Kenny Huang
pulled out of the running as a
contender to complete a buy-out
of Liverpool FC last month, there
has been little information
released from the club ’s press
office regarding a takeover.
Current chairman Martin
Broughton, brought in to
oversee the sale of the famous
club, is keeping a decidedly low
profile, as the club ’s supporters
grow increasingly more anxious
over the future of the Reds and
their burdening debt.
In just 20 days, on 6 October,
Liverpool co-owners George
Gillett and Tom Hicks are
required to repay their creditors,
the Royal Bank of Scotland, loans
totalling £285m. When deadline
day arrives the Americans must
have either sold the club, found
new loans to finance their old
ones or persuade RBS to extend
the deadline once more.
Alternatively, RBS can call in the
debt and take temporary charge
of the club until it is sold.
Broughton is currently
overseeing the sale of the club
along with investment bank
Barclays Capital, who are advising
in the sale. Despite this, Hicks has
still been able to place an
unrealistic £500m valuation on
the club which so far has been
refused to be matched by
potential investors. RBS are
clearly frustrated by the lack of
developments, with the October
deadline fast-approaching, and
may look to take direct control
over the sales process in a last-
ditch bid to finalise a deal.
In the meantime however, the
current much maligned five-man
Liverpool board still retain
control over evaluating all the
offers and have so far been
unable to conclude a takeover
deal. The board initially wanted
to conclude a deal before the end
of last months ’ transfer window
but do not look any closer today
to securing new investment.
Broughton revealed last month:
“It still remains the objective
to conclude a deal before the
end of the transfer window.
“Any bids that go straight to
RBS – and there have been
several – come to me and are
directed to Barcap,”
Broughton said. “RBS are not
involved. The control remains
with the board. ”
That was the last update
Liverpool fans heard from
Broughton as he revealed there
were several offers on the
boardroom table to be
considered. The club have now
spent five months looking for a
buyer and given the lack of
information from Broughton you
wouldn ’t bet on the Reds finding
one over the next three weeks.
Clearly the current offers
submitted are not tempting
enough for the club to sell and
other potential investors may be
waiting to see what happens on
6 October.
Should the club fail to find a
buyer Hicks and Gillett will again
attempt to refinance the debt
and hang on until the club is sold
at a price they can make a
reasonable profit from. RBS
would of course be more than
happy to oblige given the
amount of money they are
making through interest. This
would be the worst case
scenario for the club and
potential investors who are
hoping RBS will force the
Americans out and seize control
of the club.
Should RBS take control they will
be more interested in securing a
deal at a cheaper price than the
Americans for a quick return on
their investment. This opens up
more possibilities for the club in
their quest for new owners and
would remove the much
despised Hicks and Gillett from
the boardroom in a short space
of time.
Fans should be careful what they
wish for however and you
wonder how much time,
consideration and effort RBS
would put into choosing the
ideal candidate capable of
building a bright new future for
Liverpool. Ultimately the bank are
likely only be interested in
receiving the return of their
investment as quickly as possible
and will not care what the
intentions of Liverpool’s
potential list of new owners
could be.
It seems as though the end of
Hicks and Gillett ’s desperate reign
is slowly coming to its end as the
deadline approaches, but Reds
fans shouldn ’t celebrate jus yet,
the future of Liverpool FC still
hangs in the balance.