With the RBS deadline day looming of October 6th, a date constantly on the mind of many a Liverpool fan, the Royal Bank of Scotland have moved to provide a little optimism that they are prepared to act with a strong hand, by placing the clubs high profile overdue loans in to their toxic assets division.
The move by the bank, Liverpool FC’s biggest creditor, will signal to some as a strong shot across the bows but to alot more that RBS will call time on the circa £237m and rising at resides as the responsibility of Liverpool’s American owners Tom Hicks & George Gillett. Tom Hicks is well known as a man that is certainly not prepared to qo quietly as his business activities in the USA have shown with other sporting organisations, such as the Texas Rangers. In May of this he filed for Chapter 11 bankruptcy protection as a group headed by Chuck Greenbery and Nolan Ryan battled Hicks for ownership of the failing club in the courts.
RBS preference, as that of any fan, would be to conclude the sale of the club to a stable and heavily vetted new owner with the financial resource and knowledge to not only maintain Liverpool FC as an on going concern, but one with the capabilities of restoring itto a level where it can complete on and off the pitch with the leaders in the game. Regardless of these good intentions, it is also clear that as a business in their own right, their own focus has to be on recouping the funds outstanding to them as a priority, an angle of which Kenny Huang had previously opted to head towards in securing the clubs debt as an option to bring RBS on board to his way of thinking.
The nearer the desadline day becomes, the more interest it could certainly become to an investor of the finance level required, perhaps Liverpool would indeed get their wish of more offers on the table than they have previously experienced. It is a waiting game for sure but one that more than a few could be prepared to play, with the so called prize of one one of he worlds greatest ever football clubs available at a knockdown price at the end of it. The valuation placed on the club at present by Hicks & Gillett believed in a number of quarters to be close to the $800m mark, to ensure a healthy return on their investment, albeit achieved by a leveraged buy out purchase on loans that they could not meet. Their refusal to negotiate at a lower level kept many from getting to close to the table, as well as brought in to debate some of the strength and purpose that Martin Broughton actually had in the clubs sale, having been brought in to the fray to do just that.
There of course remains the option that should a sale not being concluded of the club, RBS retain the ability to force the insolvency of Liverpool’s UK parent and associated companies (Kop Football, Kop Football Holdings and Football UK Ltd) into administration. It is very much the final step to remove the owners from the club and take ownership of it themselves, although it does not come without its downside, a nine-point penalty would be imposed on the club by the Premier League if such a step was taken.
Barclays Capital, the appointed investment arm advising Liverpool FC Chairman Martin Broughton, have maintained that Liverpool’s debts with RBS must be paid in full as a minimum sale price, this on its own could be more than an attractive option to many in the field as opposed to the over inflated pricing on offer from Messrs Hicks & Gillett at the present time.
For some, the interest shown by Chinese born businessman Kenny Huang and his associates verged on nothing more than a possible well thought out PR stunt for global exposure, for other his intentions were far more genuine. When he confirmed his desire to walk away from a possible deal, having allegedly grown tired of waiting on decisions being made internally at Anfield, some believe that door was left not quite closed. It remains to be seen if the logic credited to Huang, was that he was indeed the only credible interest in the club and holding the upper hand, he could therefore take over the club at at a later date from RBS, or forced by RBS at a much lower cost. There is certainly a month left for him to materialise on to the scene again, or others of a believed similar status.
Some will say that the prey is being watched and soon the vultures will start to circle.
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LFC should have never been allowed to get to this situation. I blame the Yanks of course but surely David Moores should have seen this coming. Thankfully, we have men of the stature of Jamie Carragher (who donated all the proceeds of his testimonial to charity) who still the club a good name and another reason why I continue to support LFC. Well done Carra, Heart of Gold…you’ve proved that football isn’t only about taking money…it’s also an opportunity to give something back.
Let’s hope that the ownership issue is resolved before the 6th October but I still think the Yanks will not go without a fight. They’re likely to drag LFC into administration just to pay us back for hating them so much.
Thanks for the post. At least RBS received the thousands of emails sent to bank execs demanding that they not allow Bozo & Cookie to refinance!
I’ll take a nine point deduction any day if that means the owners are gone – and without the outrageous profit they are seeking. Give me a break.
joker… go and read sporting intelligence website.
Huang = Hoax
It is certainly an interesting crossroad we are approaching. Something has to give. Any investor surely would have done their homework and realised Hicks and Gillett wouldn’t be repaying the loan this October, so why buy over the summer and fatten their wallets when they could buy the club in a couple months for the cost of the debt.
Surely it will be some big money that steps in. Liverpool has huge global support. I loved the Huang idea of being the first club to tap the Asian market, but the evidence seems to say he is a fraud.
Willing to say the buyer won’t be anyone we have heard of at this point. Let’s just hope the fans finally get what we’ve been asking for. H&G out, with no return on their “investment” to boot.
I may be crazy, but I belive Broughton and Purslow will find great owners. I like that there was no rush to sell the club over the transfer window. New owners by January would be ideal.
I have a hunch that all buyers are waiting for the deadline and possession of the club by RBS. The businessmen involved in the process are all extremely shrewd and successful and they didn’t get there by being stupid. DIC offered the clowns £500 million 2 years ago and they didn’t take it!! DIC will be back when they can buy the club and finance the stadium for that price. I know its painful to watch another transfer window pass with nothing done at LFC quality but we need just a little more patience my friends. YNWA!
If the team goes into administration, we are truly screwed. Nine points?? That is the one thing that could happen to guarantee the club WON’T finish in the top four!