Tuesday, March 11, 2008

Tom Hicks pulls plug on DIC purchase

Hicks aiming to hold all the power as he pulls the plug on DIC
Tom Hicks has ended negotiations with DIC over their proposed purchase of 49% of Liverpool Football Club. Citing DIC's requirement to run the club by 'committee', he has ended the delicate negotiations that were going on in Dubai.
Hicks today said: "Based on a meeting held earlier today in Dubai between my representatives and officials of Dubai International Capital LLC, as well as other recent contacts between us and them, I have decided to terminate any further discussions with DIC regarding their possible purchase of a minority stake in Kop and, in turn, in the Club.DIC made it clear that if they invested in the Club, they would want it to be managed by committee."

"Based on my thirteen years of successful experience as an owner of professional sports teams, and based in particular on the situation at Liverpool Football Club over the past year, it is clear to me that such a committee approach would not be in the best interest of Kop, of the Club or of the Club's loyal and passionate supporters.Accordingly, I have decided to exercise my right under the Kop Football (Holdings) Limited partnership agreement to veto any sale of any portion of Kop and the Club to DIC. I and my colleagues and representatives will continue to explore a number of other options with regard to the ownership of Kop and the Club aimed at achieving an appropriate ownership, financial and organisational structure for Kop and the Club over the long term."

It is now unclear exactly what will happen next after this surprise move. Is it a prelude to a Hicks total sell-off, a mere tactic as the negotiations unfold or has Hicks really walked away to seek other options? George Gillett clearly wants to sell, DIC want to buy, but it seems the sticking point has been the issue of who will have the major say in running Liverpool. Minority shareholder rights are obviously significantly more limited than the majority holders, and it appears an impasse has been reached due to DIC wanting to mitigate this.

Hicks is clearly in trouble attempting to raise finances to own Liverpool outright, he cannot go on working with Gillett, so he has to resolve the situation somehow, but how this will end up is anyones guess. DIC seem very determined to get Liverpool in the long run, but they are dealing with an equally determined man in Tom Hicks.

Meanwhile Liverpool are in Milan preparing for their second leg game against Inter Milan, after winning the first leg 2-0. Missing are Xabi Alonso and Steve Finnan, but Javier Mascherano is back in the squad after pulling a hamstring in the 4-0 win against West Ham.


tippo said...

I hope this comes to an end soon. I think one owner is best like at Villa Park.

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