LFC fans plan protest against owners tomorrow

Liverpool supporters group 'The Spirit of Shankly' will stage a protest march against the owners Tom Hicks and George Gillett tomorrow before the Premiership clash against Manchester United. The march will start at 12 noon from the Liverpool Supporters Club on Lower Breck Road and will finish outside the Kop stand.

"There is a lot of anger and people want their feelings known - Hicks and Gillett are not welcome at the club," spokesman James McKenna told BBC Sport.

The 'SOS' says 4,000 fans turned out for a similar protest in September 2008, before Liverpool beat Manchester United 2-1 at Anfield and are calling on all Reds fans to show similar support tomorrow. The group are marching to express their anger at the clubs owners inability to invest within the club and are also apposed to the debt that the club have been leveled with.

"We hope a couple of thousand fans will turn out for the protest," added the spokesperson.

The groups website has also posted an interview with George Gillett given at the Liverpool FC Academy prior to the Hull City game on the 26th September, which can be heard here.

Gillett's 50% sale in the final stages says Saudi Prince

Saudi Prince Faisal bin Fahd bin Abdullah believes talks over his F6 company buying a major stake in Liverpool are nearing a conclusion.

Liverpool co-owner George Gillett arrived in Riyadh on Tuesday night to continue talks with the prince. The Americans visit is mainly concerned with setting up LFC branded academies in the Middle East and north Africa, however it also believed he will also continue discussions over the sale of part, or all of Gillett's 50 per cent holding in the club.

"Our negotiations to buy shares in Liverpool are ongoing, meetings are taking place and we might be in the final stages in the coming days," said the prince on Wednesday, reports Sky Sports.

The prince has openly admitted that investment in the Reds is firmly in his agenda, but has expressed concern over the clubs debt.

Reds co-owner Tom Hicks appears to have paved the way for Gillett to sell up. The Mirror interviewed 'a source' close to Texan, who confirmed:

“Tom would be open to considering a partnership with someone willing to buy George Gillett’s shares."

“It is still the case that the sale of any shares in Liverpool FC requires the other partner’s consent."added the source.

It is also thought that if Gillett sells, Hicks must be given the right to buy two per cent of his partner's shares, making him the major share holder of the club.

Could Gillett be on the verge of selling 50% stake in LFC?

A key aide to Faisal bin Fahd bin Abdullah al-Saud, has again indicated that the Saudi Arabian prince could bid for a major stake in Liverpool, but has concerns about the club's debt and relationship between the owners.

Recent rumours have suggested that co-owner George Gillett is on the verge of selling his stake in the club after the prince's investment company 'F6' struck a deal to establish a number of LFC football academies in Saudi Arabia.

Gillett will travel to Saudi Arabia on Tuesday to hold further talks with the Saudi Royal reports BBC Sport. Barry Didato, head of strategic investments for 'F6' said:

"His Highness's shareholding could go from anything from nought to 100%."

"But he cannot be seen as a solution to the debt or problems in the existing relationship between the owners."

The relationship between Gillett and his co-owner Tom Hicks has not been harmonious. Each has a 50% stake in the club, yet neither can sell shares without the other's approval.

"His Highness would not want to get involved in (the problems between the pair), he is not a marriage counsellor," Didato said.

"The debt has to be at a manageable level before Prince Faisal would invest and the current level is high," he said.

"He cannot be looked to as someone who is going to clean up the balance sheet - Gillett has to deal with this."

"His Highness does not need to be a majority shareholder and a takeover has not been his focus," he said.

"His Highness is an extraordinary man who is passionate about football," he said. "He has a tremendous respect for Liverpool and their fan base.

"He only wants what is best for them and is one of those rare breeds of investor who is in it for the long haul."

The prince, who attended Liverpool's demolition of Hull City recently claimed that he was close to purchasing a 50 per cent stake in the club. Speaking to Middle Eastern newspaper 'Al Riyadh', he said: "The deal will be concluded soon and its value will be between £200m and £350m."

However LFC were quick to deny any deal was in place stating: "there is no agreement with any party and reports to the contrary are wholly inaccurate."

Didato has expressed similar words recently about Prince Faisal's interest in the Reds and clearly the Saudi Arabian is eager to invest in the club partially or as a whole. Reported on this site last week, the head of strategic investments stated: "His Highness is open to anything and is open to being a minority shareholder, but he has tremendous favourability towards the brand and institution of Liverpool."

Today's Mirror appears convinced Gillett is on the verge of a sale, stating the co-owner: "is due to arrive in the Middle East on Wednesday and is scheduled for a three-day stay to sort out the deal with the Prince's advisers and his financial company F6 Sports." The story also says:

"a sale is top of the agenda to be done rather than just an investment," and adds, sources in the Middle East are: "convinced that this will happen."

The departure of Gillett would certainly be welcomed by Reds fans who have consistently protested against the co-owners following a series of promises that have never been kept. Gillett recently made a series of outlandish claims during the impromptu interview with a Reds fan whilst giving a tour of the Liverpool training Academy to Prince Faisal. The American claimed Arsenal and Man Utd could not outspend LFC and also denied he'd ever proclaimed 'shovels would be in the ground within 60 days', when speaking about the new stadium on Stanley Park. Luckily his statement was filmed by the countries media.

Possibly the prince's interest for the club could offer an escape route for Gillett and the clubs long suffering fans.

Gillett's lies exposed

Sources close to Liverpool football club have attempted to play down any rift between the manager and the owners claims the Telegraph. Co-owner George Gillett had blamed Reds boss Rafael Benitez for the lack of progress the club has made during the Americans tenure. Gillett who had given an interview to a member of the 'Spirit Of Shankly' group who were protesting against the American owners, claimed: "If its not getting better it’s not because of Gillett and Hicks, it’s the manager it the scouting and so forth." However the article says: "sources close to the situation have insisted that the club's hierarchy remains firmly behind Benítez."

Gillett made a series of outlandish claims during the impromptu interview with the Reds fan claiming:

"Arsenal by law can’t spend as much per year as we spend. Man U can’t out spend us."

"Abramavic he didn’t use his own money (to buy Chelsea) he used borrowed money".

"Rafa had the money from Xabi plus another £22-£23m and all the money that came plus the money budgeted was made available to Rafa."

Gillett also stated that he made no promise involving the building of the new stadium on Stanley Park, rejecting he had ever guaranteed shovels would be in the ground within 60 days, saying:

"Any comments on the stadium came from hicks. I think what happened was Hicks was absolutely convinced that we were going to start to move dirt to make for the foundations. In the period of time between Hicks saying that and the sixty day , the entire world credit market fell apart and I believe that he ended up with big egg on his face, making it look like he’d said something and then not living up to what he’d said and that was a mistake on his part."

However the 'Official Liverpool FC web site' tells a different story and makes clear exactly what Gillett had said. Quoting the owner directly during a press conference for the printed and televised press, Gillett says:

"The shovel needs to be in the ground within the next 60 days and you will soon see a great big swimming pool being dug out on Stanley Park."

Gillett's claim that Benitez was given £22-£23m plus the money from Alonso's sale do not add up either. The speculated funds recouped for the sale of Xabi Alonso was in the region of £30m, however Liverpool sold other players: Álvaro Arbeloa: £3.5m, Sebastian Leto signed for Panathinaikos for £3 million and several other fringe players have departed Anfield. It is also thought that the Reds recouped approximately £7m from Portsmouth from the sale of Peter Crouch the previous season. All this boosted Benite'z's summer transfer kitty to: £65-£66.5 million

Although the actual figures remain 'undisclosed', Alberto Aquilani, the Italy midfield player cost approximately £18m-20m. Glen Johnson moved to Anfield for approximately £16-£18 million. Sortis Kyrgiakos also signed for a fee of £1.5 million from AEK Athens. Combined total: £35.5-£39.5 million.

At best Gillett's sums are out by £25.5 million, at worst £31 million. Either way it highlights clearly that no funds were given to Benitez during the transfer window and approximately £30 million, has been recouped in transfer fees. These damning facts and the co-owners persistent reliance on 'spin' will only deepen Kopites burning loathing for the owners.

Gillett's interview in full

An interview with Liverpool co-owner George Gillett has hit national headlines today following its publication on fan site 'The Liverpool Way' on Saturday. The impromptu discussion held with Reds fan Michael, nicknamed 'Dougie Do'ins' was held at Liverpool's 'Academy' training facility in Kirkby prior to the Reds 6-1 victory over Hull on 26th September.

Gillett, who was giving a tour to Saudi Arabian delegation including prince Faisal bin Fahd bin Abdullah al-Saud, had earlier the same day arrived at Melwood, only to be greeted by protesting fans from the Liverpool Supporters Union 'Spirit of Shankly'. The American co-owner's tour then moved on to the 'Academy' based in Kirkby where he was once again confronted by angry fans. Gillett, then presumably in an attempt to 'save face' in the presence of his touring guests, offered to answer questions from one of the 'SOS' members present.

The fan who "went into the meeting with nothing prepared" as he didnt expect Gillett to take up his offer of a talk, later transcribed the conversation from "notes and memory."

Here is 'Dougie Do'ins' un-edited transcript in full:

As I dint think one half of our custodianship would invite me in for a talk please understand I went into the meeting with nothing prepared.

The discussion started about the current financial situation that the club is reportedly in and I started off by asking GG about what happened to the £60m borrowed from the bank as working capital and reported to get the construction on the new stadium started GG said he wasn’t aware of any £60m that had been reported.

GG} "If we tried to correct all the mistakes that had been printed we’d have a full time job doing it".

MC} "So there wasn’t £60m borrowed as a start up fund?"

GG} "I think what we did was paid it down".

I repeated the question.

GG} "I don’t think so I can’t recall it. The only money we have been involved in, we certainly haven’t Seen any money let’s put it that way".

I was then asked by GG to "try and take my attitude out of the questions".

GG} "When we bought the club we bought it with our own money" "CASH"

MC} "Your saying you bought the club with your own money".

GG} "When a year and a half later the credit crunch, we each put our portion of the club and refinanced

the business.

"Today the club has the lowest debt to each dollar of profit of any of the major clubs in the sport".

GG} "The club is in extraordinarily good condition, far better than Man U, Arsenal or Chelsea".

MC} "When you and Tom bought the club from Moores, how much debt was it in ".

GG} "The club had" (He then paused)

MC} "£40m"

GG} "Between 40 and £80m but it had no earnings"

GG} "Don’t you think we have invested massively" and said they had "put more money in other than City".

MC } "I would like to know where the money came from"

GG} "The vast majority of it came from Tom and mine, our personal cash, not from the club or anythingit came from us.

MC} "How much debt is the club in now"

GG} "That’s not the question the question is how the debt is relative to the earnings. The debt on the club today is very sound".

MC} "That’s not how the fans see it"

GG } "That’s bullshit the way the media writes it, they don’t understand how to write about cash flow and profit and loss"

MC } "Why don’t you make a public statement instead of us being drip fed information by the media as the media is often unreliable and like to sensationalise things. Why don’t the two of you make a public statement and explain where the club is at".

GG} "That’s a good idea".

MC} "We are being drip fed information".

GG} "Not by me I try to support our manager and let him have the freedom to spend it his way wisely, to do with scouting to go get the best young men available. That’s what we try to do I don’t get into strategy or individual players"

MC} "At the minute the earnings might be three because we have the fan base"

GG} "Our budgets are based on the last six years earnings of the club. We don’t put it on going to the finals or anything of that sort. The budgets are done conservatively".

MC} "A lot of it is based on champions league football".

GG} "It is based on a relatively limited success in the CL"

MC} "What if we went two or three seasons without CL football what would happen to the debt related to the clubs earnings".

GG} "The debt wouldn’t go up we have enough cash flow to pay the minimum interest that we have which is not very high and enough to give to Rafa to be competitive".

MC} "That where we are at loggerheads with your idea of capital for Rafa and ours".

GG} "Arsenal by law can’t spend as much per year as we spend. Man U can’t out spend us. Based on UTD and Arsenal do you think we under spend".

MC} "Looking at this years transfers yes. What happened to the £30m from the Xabi Alonso sale"?

GG} "We put that back in, we didn’t take it out, we didn’t do like Man U did. They took all the money they got from player sales and they owed so much money they had to use it to pay down the debt. We didn’t do that. In keeping with the history of the club we have invested more money than our competitors, which should mean it should be getting better. If its not getting better it’s not because of Gillett and Hicks, it’s the manager it the scouting and so forth. So make sure you guys balance out your analysis.

MC} "Us as Liverpool fans were use to seeing a policy of money recouped on player sales being reinvested back into the squad".

GG} Rafa had the money from Xabi plus another £22-£23m and all the money that came plus the money budgeted was made available to Rafa".

GG denied that there was a £20m price cap for player signings and said

GG} "Rafa had more than was in the budget and the money from the sales. Hicks and I didn’t take any money out or use it to pay down debt.

We then talked about the stadium and the sixty day quote. GG denied it was him who made the spades in the ground in sixty days quote and went on to say.

GG} "Any comments on the stadium came from hicks. I think what happened was Hicks was absolutely convinced that we were going to start to move dirt to make for the foundations. In the period of time between Hicks saying that and the sixty day , the entire world credit market fell apart and I believe that he ended up with big egg on his face, making it look like he’d said something and then not living up to what he’d said and that was a mistake on his part".

MC} "It’s our belief that one of the main selling issues for David Moores was that you were going to build a stadium. We should be on a par with Barca and Real Madrid. All the 2005 CL success had not been built o

GG } "Do you think GG doesn’t want to build a stadium".

MC } "It wouldn’t be the first time that Tom Hicks has been involved with a football club, promised them a new stadium and it never happened".

George Gillett pauses.

MC } "Corinthians"

I reminded GG again about Tom Hicks past dealings with Corinthians.

GG} "Michael that’s not George Gillett. I own 50% of the club and nothing is going to happen to the club good or bad that ultimately Tom or I don’t take credit for".

GG then asked me.

GG} "Did I believe after our conversation if I thought he wouldn’t love to build a new stadium"

MC } "I’m curious as to why with the wealth that you and Hicks have got they cant come together and start to build the stadium out of their own capital".

GG } "That’s a totally different issue and I’m not going to go there"

MC} "Why not build the stadium with your own money and get it back from the extra money it generates".

GG} "What’s symbolic about the stadium".

MC} "We need the new stadium George, we are falling behind

George losses his temper and raises his voice.

GG} "We are not falling behind that’s horseshit. If we could figure out how to build a stadium I would have done it yesterday".

MC} "I’ve just told you how you can do it. You and Hicks could use your own capital"

GG} "Michael that’s not what we’re going to do".

MC} "Why".

GG} "Because that’s not the way smart investment occurs".

MC} "Well why not, you have the money why not do it".

GG } "Abramavic he didn’t use his own money he used borrowed money".

MC} "Your saying that Abramovic didn’t use his own money to buy Chelsea and bankroll the squad".

GG } "There’s a difference between lateral wealth and personal wealth".

MC } "Where did he get the money from then".

GG } "From his banks in Russia".

I then asked GG about his and Hicks reported and what seemed frivolous expenses claims and used the reported £1m as a ballpark figure.

GG} "We don’t charge or take salaries from the club. We charge the club for our travel expenses for our travel expenses and our legal fees"

GG seemed surprised at the amounts of money that had been reported.

MC} "Surely you must have a press officer who reports back to you what is being said about you in the British press"

GG} "What’s being reported about me".

MC} "About your expenses claims".

GG} "All expenses was for legitimate reasons, legal people, auditors etc. Hicks put his bill directly through the club. I ran mine through my own accountant, used my own money and I was reimbursed for legal and accounting fees. There was no money taken by me. I have never taken a cent from this club, I get no salaries no compensation, the money that I got reimbursed was money that I paid out because of the way we do it is actually for the benefit of the club. The club didn’t reimburse me for over a year after I ran up the expenses, and then a year later reimbursed me for the expenses. That’s for the benefit of the club not for the detriment of it.

MC] "Its all about what’s believable George and the facts are.

GG} "The one fact that you’ve levelled at me today was that, Tom Hicks promised a spade in the ground in sixty days and it hasn’t happened. It’s the one fact that you’ve laid out. The free cash flow the amount of money reinvested in the players, every one of the other facts that you’ve raised that primarily came from the media was wrong".

MC} "I suggest to you George that you keep a closer eye on what’s being reported in the British media and rather than a wall of silence, respond to things because we are being drip fed information, rumour and Chinese whispers. Whether you decide to act upon that is totally up to yourself but, us as Liverpool supporters do not see the club moving in the right direction".

Frank McParland enters the room

GG} "Michael is involved with a group called SOS. This has been a dumping on me of vitriol of hatred of suspicion of calling me a liar on half dozen different comments. The one I plead guilty to is that I have a partner who promised put a spade in the ground in sixty days in the midst of the credit market and the stadium hasn’t and the stadium hasn’t been built. That’s the one thing, there’s no way I can deny that. That was said and it was fact, but with regard to the rest of the things, he and his group have gotten very angry at Tom and I because of things reported in the media that were inaccurate. For example he was just charging me that I had taken money out the club. The fact is that I take nothing out the club other than being reimbursed for accounting fees.

MC} I don’t think I charged you with taking money out the club".

I repeated to FMc the issue about the concerns about the money from the sale of Xabi Alonso and that the money recouped from his sale went towards paying off debt.

GG} "The only pay down came from Hicks and I pocket. We put £128m in the last eighteen months to buy players on top of the money that came from the club not. The reason I'm upset is that he (mc) just said I have no more confidence and fundamentally I don’t believe you and all I can do is tell him the facts and he’s recommended I think correctly that there’s no wall of silence that the information is being drip fed to the media and we should make the facts more available".

FMc "One thing about SOS is that their mad passionate Liverpool supporters like we all are and they’ll always speak from the heart and if they know the situation and you tell them the situation they’ll take that on and I know that. Its all about us isn’t it".

MC} "It’s about LFC George. When you quote Chelsea, Man U and Arsenal, as I said the only time I worry about them is when we are playing them, as clubs the can crash and burn I’m worried about LFC"

GG} "We are putting more money in than they are and we are not getting credit for it from SOS because all they care about is Liverpool. On the other hand the same media they quote are criticising us for not being competitive with the other teams.

Frank McParland went on to say that he was 100% behind Rafa and that every time he’d asked for something for the academy it had been provided and he and GG used the AstroTurf pitch as an example.

MC} "The academy and Melwood is fine we are worried Anfield and the progression of the club on the basis that the club progresses from the success of the first team onwards. So as a group and as Liverpool supporters that’s what we are worried about.

I repeated to FMc that one of the biggest selling factors of the club from DM to H+G was the stadium.

MC} "A lot of this is based around the stadium. I personally and not speaking for SOS believe that personally that could move this situation forward is if we seen progress on the stadium and we seen a way forward and lets start competing with Barca and Madrid. The stadium is one of the biggest issues George".

GG}"Let’s focus on one set of challenges. When I was in Spain the other day to try and understand the economics of those clubs. The way they survive is that every five years the government writes off their debt. They’ve spent crazily this is now the third cycle of what’s happening. That’s not going to happen here and its not going to happen to any other EPL".

As time was running short I ended the meeting by saying.

MC} "At the minute we have people from around the globe banging on the doors to watch Liverpool. If the club had a sustained run of poor results and went without success that the glory hunters would soon go and the support the next successful club and that that G+H would be glad of the bread and butter supporters like my self and SOS.

I have done my best to relate all of what was said between my self and George Gillett. If I have missed anything out it is because I have either forgotten or it was just things that have already been said.


Many thanks to 'The Liverpool Way' and 'Dougie Do'ins' for the transcript.

Gillett rejects takeover rumours

Liverpool co-owner George Gillett has again denied rumors that Saudi prince Faisal bin Fahd bin Abdullah al-Saud's 'F6' investment company was planning to make a major investment in the club. Gillett's comments follow an official statement from both owners claiming "there is no agreement with any party and reports to the contrary are wholly inaccurate." Speaking to 'thesportbriefing.com', Gillett said:

"We had a marvellous meeting with them on Saturday and they were impressed with the club, but the academies in Saudi Arabia and North Africa and their possible involvement in NASCAR-type racing in the Middle East were the only items on the agenda," said Gillett on Sky Sports.

He added: "We have entered into a period of exclusive discussions regarding the possibility of introducing NASCAR-type racing to the Middle East, but the memorandum of understanding does not cover anything else."

F6 director Barry Didato confirmed they are exploring commercial opportunities with Liverpool, however their discussions "does not involve the possibility of an immediate investment in Liverpool", and any possible transaction would be "several months away".

"As far as investment in Liverpool is concerned, that would be a long way off. A lot of people have jumped the gun and any possible investment would be several months away," said Didato on Sky Sports.

"The agreement signed (at the weekend) leaves the door open for it (possible future investment in Liverpool), but that was certainly not the focus of it."

Didato added that no talks have been staged between F6 and other Liverpool co-owner Tom Hicks.

"George has a partner there and has his own issues to work through," Didato added. "Mr Hicks will also have his own issues and we are not sure what he wants to do.

"Another issue is the club's debt (of around £245million). Prince Faisal will not put forward investment capital to just clean up a balance sheet. He would only want to use money to take the club forward. It would be long-term money."

"His Highness is open to anything and is open to being a minority shareholder, but he has tremendous favourability towards the brand and institution of Liverpool," noted Didato.

"His Highness would need to be invited by George and it would have to be at the right time for George. There would need to be a shared vision between all of the parties."

Hicks & Gillett deny sale of club is imminent

Liverpool Football Clubs joint owners George Gillett and Tom Hicks have responded to recent reports about the Club's ownership. Press speculation over the weekend reported Saudi prince, Faisal bin Fahad bin Abdullah al-Saud was on the verge of buying into the Anfield club after his Saudi Arabian sports investment company: 'F6', confirmed it had reached an agreement with Liverpool to establish a number of football academies in the region.

The prince, who attended Liverpool's demolition of Hull City at the weekend reiterated yesterday that he was close to purchasing a 50 per cent stake in the club. Speaking to Middle Eastern newspaper 'Al Riyadh', he said:

"The deal will be concluded soon and its value will be between £200m and £350m," said the prince.

He added: "If we finalise the deal, it will be something marvellous because Liverpool is one of the best and most famous clubs in England and the whole world," reports Sky News.

The Telegraph reports the prince and Gillett will hold further talks when the American visits the Middle East in October.

However a spokesperson for George Gillett and Tom Hicks, via the clubs official site, said:

"The owners have jointly retained Bank of America Merrill Lynch and Rothschild to evaluate the possibility of new investors injecting equity into LFC.

"However, the process is at an early stage, there is no agreement with any party and reports to the contrary are wholly inaccurate."

Liverpool agree new refinance deal with RBS and Wachovia Bank

Liverpool football clubs joint owners have agreed a new refinance loan with Royal Bank of Scotland and Wachovia. The details of the new deal which is believed to be for another year, means Tom Hicks and George Gillett repay £60 million of the outstanding loans that will “reduce the debt to £230 million,” reports the Telegraph. £40 million is expected to be repaid this week, with the remaining £20 million due later in the year.

The original loan taken out by the owners in January of last year was for £350 million, however “Sources with knowledge of the deal” say that “figure has already been reduced to £290 million since last summer, and will come down by a further £60 million as a condition of the new deal.”

Club managing director Christian Purslow is understood to have negotiated the loan with the banks, who insisted on the £60 million repayment “as a condition of extending a loan facility.” By paying off £120 million of the outstanding debt, the Americans will reduce their annual interest payments, but it is possible the banks may have demanded a higher rate to extend their line of credit.

Liverpool’s owners unable to meet Friday’s loan deadline

Liverpool Football Club’s American owners, Tom Hicks and George Gillett Jr. were unable to secure an extension to their £350 million loan before Friday night’s deadline.

The co-owners, had reached an agreement in principle two months ago with the Royal Bank of Scotland (RBS) and Wachovia about refinancing their existing loans. However Friday night’s deadline passed with Hicks failing to provide the guarantee, “a sum believed to be in the region of £70 million, that Wachovia had requested,” claims The Times.

“That deadline has been described by sources as “fluid”, with negotiations set to continue into next week,” adds the story.

Gillett has raised capital through the sale of his ice hockey franchise the Montreal Canadiens, However the story suggests Hicks who’s “sporting and business empire has been hit hard by the global credit crunch, has been forced to request extra time in his attempt to satisfy Wachovia.” However the American businessman “is said to be optimistic that a solution will be found.”

Uncertainty over the ownership of the club is bound to continue, even if Hicks and Gillett succeed in securing another short-term loan.


Get Daily Liverpool FC news at http://www.lfcalert.com/

Hicks and Gillett bank deadline may be extended

Negotiations between Liverpool owners Tom Hicks and George Gillett and RBS over refinancing a £350 million loan may extend beyond Friday's deadline claims the Telegraph.

“The two parties have been in talks for several months and both sides have expressed confidence that a deal will be done.” But the story suggests that any deal may not be concluded by Friday despite that being the date of the loans expiry.

“The owners have thus far committed £185 million of personal guarantees and other collateral for the loan,” of which the football club are liable for £105 million. The remaining £245 million lies with the holding company, Kop Football Ltd, and secured by Hicks and Gillett.

RBS Bank write letter to LFC supporters

"The Royal Bank of Scotland has taken the unprecedented step of writing to Liverpool Football Club’s supporters to justify its continuing financial support of the club’s American co-owners" reports the Post.

The bank has been inundated with emails from Liverpool fans requesting the bank to withdraw its financial assistance to Tom Hicks and George Gillett.

“The sending of the email is virtual confirmation the loan will be refinanced.” Says the article.

The message from RBS says:

Thank you for your email expressing concern about RBS' banking arrangements with Liverpool FC and its current owners. We are aware of the strength of feeling of a number of fans on this matter and have corresponded with many during the course of the past year or so.

Perhaps I can start by putting RBS' relationship with Liverpool FC in context. RBS is the main banker to the Club including all of its operating accounts, cash management, online banking, automated payments, and credit card processing to facilitate ticket sales and retail merchandising. We also provide a credit facility to support the Club's working capital requirements and a letter of credit facility to facilitate the purchase of players from non-Premiership Clubs, along with a loan facility for design, planning and other preparatory work for the proposed new stadium at Stanley Park. We have set out to establish a long term relationship with the Club, and we look forward to this continuing for many years to come.

We also lent money to the Club's parent, Kop Football Limited, so that it could repay debt which was on the balance sheet of the Club at the time of its acquisition by George Gillett and Tom Hicks. This is the only portion of Kop Football's bank debt for which the Club is legally responsible. We took great care when making our original loan in early 2007 and when refinancing it last January to distinguish between obligations of the Club, primarily those outlined above, and obligations of its parent company, the latter being secured by personal guarantees and collateral from the owners and a pledge of the shares they own in the Club.

As a result the Club does not suffer the burden of debt implied by a lot of the recent press reports and, in our view and that of the executive management of the Club, it is financially healthy and able to service comfortably its debt obligations from cash flow generated by its playing and commercial activities. It is in our commercial interest to support the Club in the manner described above so that it can continue to perform successfully on and off the pitch.

As far as the Government is concerned, they have been very clear that they do not wish to exercise day to day control over RBS or make commercial decisions for us. Indeed they set up an independent body, UKFI, to oversee the Government's shareholding in RBS, so matters such as strategy and governance can be agreed, while they leave commercially related matters to us.

RBS attaches a great deal of value to being associated with Liverpool FC. I hope my comments reassure you as to the strength and depth of our relationship with the Club and that we will endeavour to contribute to its long term health and success.

Kind Regards,
Roger Lowry, Head of Group Public Affairs, Royal Bank of Scotland Group

Spokesman for fans’ group ‘Spirit of Shankly’, James McKenna said he was “surprised and disappointed.” Speaking to the paper last night, he said: “The fans’ relationship with RBS is not great because of their support for Hicks and Gillett. I’m disappointed that the bank doesn’t feel we should have any input or say on this, even though it is tax-payers’ money that has bailed them out. The main value for RBS must be financial, in terms of the interest payments they receive.”

Reds close to re-financing bank deal

New Liverpool managing director Christian Purslow will open talks with the Royal Bank of Scotland over refinancing the owners’ £350 million loan in the coming days, with a view to securing a new deal before the July 24 deadline reports the Telegraph.

The story goes on to say that “contrary to reports on Tuesday, owners George Gillett and Tom Hicks have not finalised the terms of the refinancing yet, though there is an expectation that an agreement will be reached.”

New managing director Purslow, who was appointed on Monday, has a finance and private equity background and “the RBS deal is among his priorities,” reports the story.

The article also says that “RBS will ask Gillett and Hicks to provide additional security on top of the £185 million in personal guarantees and cash they provided in January 2008. The owners are working hard to try to provide it, with Gillett selling the Montreal Canadiens and Hicks seeking a buyer for the Texas Rangers. Their willingness to cash in on US sports assets underlines their belief that Liverpool remains their most profitable sporting asset."

Reds receive Financial boost as Gillett sells NHL team

Liverpool co-owner George Gillett has moved to strengthen his financial position by agreeing a £330 million deal to sell Montreal Canadiens, his National Hockey League franchise to brewing giants Molson reports the Telegraph.

The 60-year-old, who took control of the Canadiens in 2001, has agreed to sell his 80.1% stake in the ice hockey team, together with the Bell Centre Arena where they play and the Gillett Entertainment Group, which promotes sport and music. The Canadiens buy out has yet to be approved by the NHL’s board of governors, could take up to six weeks to be approved, but it is not expected to be blocked.

NHL commissioner Gary Bettman said: “I think to the extent that they [Gillett] have been able to find people who are obviously passionate about the game and structure a transaction that makes sense for everybody, that’s a real plus for the franchise.”

Both Gillett and Hicks have been actively seeking buyers for their American sports franchises in recent months in order to raise funds to consolidate their position at Liverpool. Gillett has struck a deal with brewing giants Molson for the Canadiens, Hicks continues to search for a buyer for his Texas Rangers baseball franchise.

The Molson deal will no doubt strengthen the pairs position in refinance their £350 million loan with the Royal Bank of Scotland and Wachovia on July 24, but could also give Rafa Benitz the extra spending power to strengthen his squad this summer. It may also stave off the pack of clubs intent on picking off players because of the clubs so called financial hardship.

Liverpool MPs launch bid to topple LFC’s owners

Liverpool City MPs have launched a fresh bid to topple Liverpool FC’s American owners reports the Echo.

The article goes on to say MPs “want the government to pull the plug on a crucial £350m loan to Tom Hicks and George Gillett – by taking advantage of the part-nationalisation of the Royal Bank of Scotland. MPs said the move, prompted by fury over the apparent collapse of plans for a new stadium, would force the Americans to sell. A parliamentary motion was tabled by Walton MP Peter Kilfoyle calling on the government to “ensure the Royal Bank of Scotland does not renew that credit facility at the end of its current term”. Backed by West Derby MP Bob Wareing the motion was first tabled last autumn. The new attempted “coup” comes at a crucial time – because the Liverpool loan expires on July 24. Mr Kilfoyle said: “My concern is for the regeneration that is planned for the area around the new stadium which will not go ahead unless it is built. “At the current time there are a lot of conflicting demands for that money. “That means it could be lost altogether because the stadium seems to be as far away as ever.” Mr Kilfoyle accepted RBS was still an “autonomous” organisation. But he added: “The government has a great deal of influence, because it is the majority shareholder.” Hicks and Gillett announced a one-year delay to the Stanley Park scheme last October. Since then, the Anfield crisis has worsened with the revelation of a £42.6m loss, mainly because of interest payments on debts taken on to buy the club.”

Quebecor join race to purchase Gillett’s hockey team

Following on from yesterdays story, media conglomerate Quebecor has joined the Molson family in the race to purchase George Gillett’s Montreal Canadiens, as well as its Bell Arena home claims the Telegraph. The story says the “price that could rise as high as £300million, allowing Gillett to secure both his position at Liverpool and the club's immediate financial future.”

The article goes on to say: “Both Gillett and his business partner, Tom Hicks, have admitted in recent weeks they are looking for "minority" investors in their sporting empires and it is believed both are prepared to countenance selling their sport assets in the United States to maintain control of Liverpool.”

Hicks and Gillett are said to be “close to securing a six-month extension on the £350 million loan taken out last January. It is believed any such deal would likely be dependent on both owners putting more of their own capital into the club.”

The story also states Rafael Benitez “is not likely to be handed a significant boost in the transfer market should Gillett sell the Canadiens.”

Gillett receives bid for Montreal Canadiens

Liverpool FC owner George Gillett has received a takeover bid from Quebec’s Molson family for the National Hockey League’s Montreal Canadiens, reports today’s Echo. Gillett bought the Canadiens from brewer Molson Inc. in 2001 and it is believed they are seeking to regain control of the 24-time Stanley Cup champions.

Geoff Molson, a 38-year-old director of the Canadiens and Molson Coors Brewing Co., is leading the investor group, which also includes brothers Andrew and Justin. The family said in a statement today:

“We have assembled a very solid and credible group of investors and financial institutions as part of our offer,” Geoff Molson said in the statement. “We think our offer has all the ingredients to be well received by the potential seller and the National Hockey League.”
Molson said he looks forward to meeting with Gillett, though he declined to comment further on the offer, citing a confidentiality agreement.

The Mirror is also running the story and values the hockey team at “£200m”. It also claims Tom Hicks is “close to selling half his stake in the Texas Rangers baseball franchise” The Mirror article headed under the screaming headline: “Liverpool secure loan to refinance club and top players look safe” declares: “Liverpool's owners have secured a £350million loan to refinance the club, after pledging more funds for Anfield.” However the loan has not yet been re-financed and the same article admits this later by saying: “the pair have been told that the refinancing with the Royal Bank of Scotland and American bank Wachoiva is a formality.” The so called new deal will allow: “manager Rafa Benitez to resist a Spanish armada trying to tempt three of his top stars away from Anfield,” the story claims.

Liverpool auditors issue warning to Hicks and Gillett

Liverpool's owners Tom Hicks and George Gillett have been warned by their auditors that failure to refinance a £350 million loan due next month will threaten the club’s ability to operate as a going concern. All the national newspapers are running this deeply worrying story, with terrifying headlines screaming of financial ruin.

The club’s latest accounts, which were released by Companies House yesterday, revealed that Liverpool paid £36.5 million in interest on their debts in the financial year ending July 31, 2008. Despite the announcement of a record turnover of £159.1 million and a pre-tax profit of £30.2 million, the club’s net debt — not including that of the holding company — almost doubled from £43.9 million to £86 million. Kop Football (Holdings) Ltd made a pre-tax loss of £42.6 million, with its net debt rising to £299.5 million.

In the accounts submitted for Kop Football (Holdings) Ltd, KPMG writes: “The current economic conditions have had a significant impact upon world credit markets and, accordingly, raising finance in this environment is challenging. Whilst the directors believe the going concern basis is appropriate, the fact that facilities are not currently in place to fund all projected cash requirements over the next 12 months indicates the existence of a material uncertainty, which may cast significant doubt upon the group’s ability to continue as a going concern, and it may therefore be unable to realise assets and discharge liabilities in the ordinary course of business. Nevertheless, after making full inquiries and considering the uncertainties described above, the directors have a reasonable expectation that the group will secure adequate resources to enable the group to continue in operational existence for the foreseeable future.”

Today’s Times claims: “one senior Liverpool figure expressed disappointment at KPMG’s message, calling it “unduly alarmist”, while another said that it was a standard statement in situations where a company is in the process of negotiating a refinancing package. He added that, while Kop, the investment vehicle, may face uncertainty, the club are afforded some protection by the banks.” However it also goes on to say: “There is an acceptance within Anfield that the club are not generating enough money to cover the interest payments of Kop Football (Holdings) Ltd, the club’s holding company.” Meanwhile Tom Hicks and George Gillett Jr, continue to look for outside investment and, in the more immediate term, to renegotiate their existing £350 million loan. The Americans have until July 24 to refinance their credit deals with Royal Bank of Scotland (RBS) and Wachovia.

The Accounts also go on to reveal the owners plans for the new stadium, emphasising that securing financing for the development of a new stadium is central to their strategy for future growth. Pre-construction work on the new Stanley Park site was halted indefinitely last September, with the owners claiming "unfavourable conditions in the global financial market" the cause. In the accounts, however, they say that opening is “delayed until 2012” and that a revised planning application, with a view to raising the capacity from 60,000 to 73,000, will be submitted imminently. The Tmes says: "Hicks, who is bullish about the club’s future and his prospects of remaining at the helm, is unconcerned by the figures in the accounts. He remains highly optimistic that a refinancing deal will be agreed in the coming weeks and that outside investment will be secured after that.” However the article goes on to warn: “the search for financial backing began almost as soon as they bought the club in February 2007 and, more than two years on, the new stadium remains a pipe dream."

Although deeply worrying, the warning from the club auditors is based upon the club being unable to re-finance its loan, however realistically this is unlikely to happen. One thing is certain; the warning from the auditors should not be ignored. The club needs to restructure its financial position soon and the owners need to act in a responsible manner. Despite all this, Rafael Benítez has been assured that the owners will provide funds for new players; however the silence in the transfer market is deafening. We did not secure Gareth Barry’s services, despite claims Liverpool launched a late bid for the midfielder. If the club is unable to compete in the transfer market this summer, any momentum they have gained in the Premiership this past season could be lost. With other sides flexing their financial mite, the Reds could lose out on more 'key' signings Benitez has lined up. If he is to receive funds, where will it come from? Hicks and Gillett personally? Or will they have to wait until the re-finance package is in place? With deadline set for July 24, Liverpool could end up scrabbling around bargain basements looking for unwanted items.

Hicks and Gillett refinancing deal may give Rafa extra transfer money

Liverpool owners Tom Hicks and George Gillett are on the verge of announcing a £350million refinancing deal says today’s Sunday Mirror. It claims: “accountants from the Royal Bank of Scotland and Wells Fargo are currently examining Liverpool's financial figures with a view to agreeing a loan package that will ease the pressure on the two Americans. The move could also bring an improved summer transfer budget for manager Rafa Benitez, who has made Carlos Tevez his No.1 target, but is unable to meet the £25.5m price being asked by the Argentine's owners. The deal will hinge on Hicks and Gillett pouring more of their own personal finance into Anfield - and the pair are looking to raise funds by selling off some of their other sporting interests in the United States,” says the article. “Hicks is ready to sell his majority stake in baseball club Texas Rangers while Gillett is searching for a buyer for the ice hockey outfit Montreal Canadiens to gen-eratcash. But with Liverpool set to announce record turnover and increased profits of almost £40m this week, there is increased confidence that the club can easily service a new loan agreement. An insider said: "Despite claims to the contrary, both owners have spent about £80m of their own money on Liverpool over the past two years.”

This news will come as no surprise to regular readers of LFC Alert as a refinancing deal was reported on this site weeks ago. This story however speculates the re-financing deal ‘could’ bring in extra money for Rafa this summer.

Hicks and Gillett will re-finance LFC loan

The former Football League chairman Keith Harris, believes that Liverpool co-owners Tom Hicks and George Gillett are likely to succeed in refinancing their £350 million loan from RBS and Wachovia banks before the July deadline claims today’s Telegraph. Harris, speaking at the Soccerex forum at Wembley Stadium, said. "I think there will be a negotiated settlement,"

"The only way banks can make money is to start lending again. The two banks RBS and Wachovia, have said they don't want to be involved in this kind of business and RBS are quite stretched.

Harris believes Premier League clubs have suffered a slump in value of up to 20 per cent since the economic crisis struck.

Harris said: "There is some renewed interest now. There's been a shocking fallow period but just like you are seeing investors putting money into property companies and banks, people are investing again in football clubs.

Liverpool takeover rumours continue

The Sunday Express and The Daily Star are running the story that Liverpool Football club may be edging closer to a takeover or investment from abroad, with several wealthy individuals circling the club. John Richardson writing for the Express states that "Leading members of the Indian-GMR group owned by Grandhi Mallikarjun Rao, who is worth £4.2billion, were wined and dined by Hicks and Gillett after the mid-week Arsenal match. Hicks and Gillett are also in talks with one of Kuwait’s richest families. It is understood that Nasser Al Kharafi, worth £9bn, is considering a bid. Also looking on is Liverpool fan Sheikh Mohammed bin Rashid Al Maktoum of the Dubai ruling family."