ENGLISH PREMIER LEAGUE LIVERPOOL CRISIS:LIVERPOOL supporters' groups have welcomed the news that the private equity firm Blackstone had ended talks with Tom Hicks, the co-owner who had hoped to retain control of the club.
Hicks last week met Martin Broughton, the Liverpool chairman who was installed by the principal lender, Royal Bank of Scotland, to oversee the sale of the club in conjunction with Barclays Capital.
The American informed Broughton of his intention to refinance the €282 million owed to the bank. That led to speculation over the weekend that GSO Capital Partners, the debt restructuring arm of Blackstone, was close to agreeing a €333 million refinancing deal that would have allowed Hicks to pay down the loan and inject new equity into the club.
Such an agreement would have given Hicks two years in which to find a buyer willing to pay a premium on the €260 million he and George Gillett paid for Liverpool in 2007. The prospect prompted dismay among fans’ groups who have waged a long campaign against the owners.
Such groups bombarded Blackstone and GSO executives with emails over the weekend.
But it is understood that, although talks took place, a formal financing offer was not made. Blackstone sources said the decision had been made for business reasons and not as a result of public pressure.
Hicks and Gillett announced in April that they were prepared to sell Liverpool, but their desire to make a return on their investment and the sums required to stabilise Liverpool’s debt, invest in the squad and build a new stadium have deterred potential bidders.
Hicks had hoped new funding would allow him to take full control, pay down the debt and provide funds for players. Under the plan, Gillett’s stake would have been diluted. Now Blackstone has walked away, Hicks will search for a replacement loan before the mid-October refinancing deadline.
The supporters’ union Spirit of Shankly welcomed the news that Blackstone had turned down Hicks’s approach and called for two days of protest against the owners and the financial institutions which have lent them money.
The group will hold an egm on Saturday before Liverpool’s game against Sunderland at Anfield, followed by a protest at the match.
“We would like as many supporters as possible to make their feelings known towards the owners during the Sunderland match, using banners, flags and songs,” the group said. “Following the match, irrespective of the result, we intend to hold a sit-in protest.
“To build on the momentum of this protest and to increase pressure on the owners we are also proposing a day of action at the match against Blackpool,” said the statement.
“We will start this day with a mass march to show our anger towards the owners and those responsible for our current situation. It will also be an opportunity to show support for what we want to achieve – genuine supporter involvement in how Liverpool football club is run.”
Guardian Service
