As you can imagine as editor of this website, the last few months have invariably meant me reporting stories and writing blogs about Liverpool that have not generally been positive. Hopes of a sale of the club in August were dashed, and this has been surrounded by the sacking of Rafa Benitez and a poor start to the season under new manager Roy Hodgson. All in all, the Reds are going through one of the most difficult periods in the club’s history and I am hoping that that the October 6th deadline and the subsequent ten days after, which could see the RBS call in their loan to the American owners, could bring to an end this drawn out saga.
The ownership issue has hung over the club for so long that it has begun to consume everything relating to the club. It has brought every Reds fans to their lowest ebb, and we all hope in the next 17 days that this despair can be lifted off the club. It is then with a small amount of hope that I read an article in the Liverpool Daily Post today about the possibility of two potential buyers being in the “advanced stages” of talks. Certainly it is not wise to get our hopes up, especially after they have been dashed many times before. The Daily Post is hesitant in what it says about the two parties for although they are going through due diligence, no former offer has been made.
One of the big issues ahead when the deadline comes along is what RBS will decide to do about the loan. With its majority being state-owned, RBS sees calling in the debt, forcing the club’s holding company into administration and selling the club on its own, as the last resort. At the same time though, it is unlikely that a sale of the club will take place before the deadline because of the American owners’ high asking price and the fact that the interested parties would see no point in paying a premium price when they could just wait for the American’s to default on the loan in a short space of time.
According to the report also, the Liverpool board are taking their time with the two interested parties. Martin Broughton, Christian Purslow and Ian Ayre are not really keen to sell the club to the highest bidder if a better offer for the club, in regards to financing player acquisitions, the stadium and reducing the debt, is on the table. Chairman Martin Broughton came out today to say to the Guardian that he wouldn’t be putting his name forward to become Chairman of the FA, indicating that that a deal to sell Liverpool is a long way off. He was appointed to oversee the takeover and he has taken his hat out of the ring for the FA solely because he hasn’t finished his job at Anfield.
I, like every other Reds supporter, would love to see the RBS call in the debt and leave the American owners with nothing. Whether this becomes a reality is up to whether the bank finally loses patience with Hicks and Gillett and tries to recover as much as they can themselves from the sale of the club. The waiting goes on, but let’s hopes, for the club’s sake, it is not for much longer.
Follow us on twitter @live4Liverpool
Live4Liverpool is recruiting columnists. For further info contact the site editor at editor@live4liverpool.com
EA Sports’ New MMA Game Trailer!
Martin Broughton has failed.That is the only fair conclusion that we can arrive at. I dont believe the fans have any faith in Purslow either – big names – big reputation – but when push came to shove – found wanting . R B S have also performed very poorly – the extension granted in April was far too long – no wonder the banks are in a mess.
Why have Broughton & Purslow failed? Is it their inabilty to magic up a buyer pre-October who wants to pay a premium for an asset they can pick up at ‘cost price’ in a few weeks? If so, not sure you can call that a “fair conclusion”. The Purslow / Penis banner was frankly juvenile and embarrasing.
Any reason for the failure to secure a sale rests with the owners insistence upon receiving a premium. Simple. There are two problems at LFC, and soon they will be gone.
As for RBS…what do you expect them to do? Write off the debt? Take the asset on to their balance sheet? Or do what they did, which was to extend the debt on favourable (to them) terms knowing that the revenues of the club could service the debt, therefore earning them a return and elongating the period when a buyer could be found. Their CEO is a Man Utd fan so the shortest time we stay on their books post Oct 16th the better!
Just keep the faith. Come mid-Oct H&G will be gone and we can start to think about the future.
Alternatively, all of the masters of high finance on these sites who point out what mistakes the Broughton / Purslow / Ayre / RBS are making can no doubt dip into their surely astronomical pockets and buy the club themselves….
Delighted if you are correct but I fear come November your reply will be nonsense BUT praying this is not the case.
Outstanding post! I enjoy coming to your blog for the reason that you often post excellent articles. Great work once again. I have already adding to favorites this website. I believe I shall subscribe to this feed also. Until Next Time! …..
I know the board has an uphill battle to sell the club at the asking price, to pay huge overs then build a stadium, and half rebuild a squad can be asking too much.
I do not see the bank giving the owners any extensions now, and believe the next owner has already got a deal in place with the bank.
To be honest, its not Broughtons fault really. He could be the best salesman in the world, but he still wouldn’t be able to sell the club for the asking price.
What idiot would pay the asking price.
There’s still not really any news on this, it’s all whispers and false dawns, getting a little tiresome too.
The problem is the £600-800m Hicks is wanting!Gillett wants out asap whilst Hicks dont mind being the most hated man this side of the pond!
I hope you’re right. Like you said though, we’ve had our hopes dashed too many times, this year alone, so it’s best just to see what happens in the next 3 weeks. Something has to.
By the looks of things, Liverpool will go into administration and when RBS holds out an asking price of about 300M for the club, we will then see less talk and more bids to buy the club. Nuff said.
From my understanding the valuation of the club has already gone down, but not by much, the October deadline is still the 6th but an extra 17 days is given to the board not the owners after the 6th of October. This is for them to put a realistic valuation on the club and to find the best buyer, if this fails aswell then RBS will have no choice but to takeover the club and the holding club will go in to administration, we will avoid the 9 point penalty but face a £60 million fine which will be added on top of the asking price, but the bank will then on auction off the club then it will be the highest bidder not the best buyer. So i hope the board finds the best buyer and it doesn’t go to auction. Just look at the current owners they only got the club because they paid Moores slightly more and we could have had DIC who would have been the better party even if Moores was right and they did sell it on for a profit later atleast wed probably have a new ground by now and world class players so they could have sold it for a profit……YNWA
When are people going to realise that Purslow, Broughton and Ayre are on our side. They blocked hicks from refinancing using melwood or anfield as collateral. They are trying to do whats right for the club and the fans. Yes they may have failed in selling the club but I dont think anyone would have been able to sell to at the hugely inflated asking price.
Personaly im hoping a sale does go through before the deadline because theres no telling what RBS would do to recoup the money they are owed. All our star players could be sold in an asset stripping plan and then the club could be sold to the highest bidder without any care as to the future of Liverpool FC.
These are very anxious times with the very real possibility of Hicks retaining control.
Rob A. I have 2 say thank you. The most reasonable and well thought out comment on the owner situation. Can’t keep blaming Purslow who along with Ayre 4 making Liverpool’s commercial activity a lot more professional and profitable. It’s the owners that are sucking the life blood out of the club. Nobody is going 2 pay the inflated price especially before the RBS deadline.
I have a feeling the bank will take the club but do believe they will do us a good turn.
I think they will choose the best buyer as they are only out to recoup their debts.
For some reason i trust the bank more than i ever trusted David Moores.