Home > Football > Hicks and Gillett MUST go – but Liverpool should beware of more DIC heads
Hicks and Gillett MUST go – but Liverpool should beware of more DIC heads
Protests against the Yanks have rung out loudly at Anfield but can supporters really trust the next lot of foreign investors who are waiting in the wings?
by Claire Bee on 02 May 2008
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The charges against the current American owners of Liverpool are many and several. "We will build a new stadium" – They lied."We will not place debt on the club" – They lied."We will invest in the team" – They lied."We will act as suitable custodians for the club" – They lied.It is possible that things might have been different had the world’s economy, and America’s in particular, not decided to wobble and fall over, but it seems that for all their early words and promises when Gillett and Hicks saw a possibility to buy the club all they saw were flashing dollar signs and a juicy profit.‘It would be easy to view [DIC] as knights in shining armour, rushing to rescue the team that they have apparently supported all their lives’It would have seemed an opportunity that they simply couldn't miss – one of the world’s leading 'brands', currently hugely under-performing compared to their rivals (in financial terms), with two clear routes to increasing the value of the investment. One was to simply increase the marketing activities undertaken by the club, and the second was a capital investment in a new stadium.The returns from both were clear for anyone to see. One glance at the way Manchester United have performed commercially over the last 20 years shows the possibilities open to Liverpool, and both clubs are similar in terms of worldwide support. And, if any proof were needed of the benefits a new stadium would bring, you just have to look at the increase in Arsenal's turnover since they left Highbury.The plan seems simple and one that has been used many times by many people across different industries before. Identify an under-performing company, buy the company and then use the company’s assets to secure both the cost of the purchase and the investment needed in order to minimise the risk to the investor. Then use the profits the company generates to service the debt it now 'owns'. As the company performs better and pays off the debt its value increases, enabling the investor to sell for a handsome return. It's easy money and a low-risk option, making it an attractive route for both the investor and the banks providing the finance.
Comments (2)
by Sir Bob on May 02, 2008
Who let you away from the sink? Get back there now and leave the football to the boys..... ;o)
by KEEGAN REDDY on May 07, 2008
All that old "tommy" is looking for is another way out to make more money out of liverpool. I think that George Gillett should be more asertive in what he is doing (just as Tom is doing) & take a stand against it and kick that wanker out!!!!!!!!!
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