Home > Liverpool FC agree U.S. takeover
by Reuters on 06 February 2007
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Premier League football club Liverpool have agreed to be taken over by U.S. sports tycoons George Gillett and Tom Hicks for 174 million pounds.
Gillett and Hicks, through their Kop Football vehicle, said on Tuesday they would pay 5,000 pounds per Liverpool share and the total value of the deal, including debt, was 219 million pounds.
Billionaire Hicks is the owner of the Texas Rangers major league baseball team and the Dallas Stars NHL franchise, while Gillett owns NHL's Montreal Canadiens.
"The Hicks family and the Gillett family are extremely excited about continuing the Club's legacy and tradition," the pair said in a statement.
"Liverpool is a fantastic club with a remarkable history and a passionate fanbase. We fully acknowledge and appreciate the unique heritage and rich history of Liverpool and intend to respect this heritage in the future."
Liverpool, 2005 European Champions, have been seeking an injection of cash for two years to help challenge for top honours and fund a new stadium.
They lie third in the Premier League table with 50 points from 26 games. Manchester United lead on 63 points while Chelsea are second with 57.
The 18-times English league champions had been in talks with Dubai International Capital (DIC), but DIC dropped its bid plans last week when Liverpool asked for more time to consider a rival offer from Gillett.
NEW STADIUM
Gillett had an initial offer for Liverpool rejected late last year. Media reports said this included a plan to share a ground with city rivals Everton that was unacceptable to Liverpool's majority shareholder and chairman David Moores.
Gillett and Hicks said on Tuesday they had never discussed such a plan and they intended to build a new 60,000-seat stadium for which the club has already received planning permission.
"This has been an important time for the club. We now have the right partners for the future," Liverpool chief executive Rick Parry said in statement on the club Web site www.liverpoolfc.tv.
"I am absolutely certain we have now ended up in the right place, with owners who will help the Club succeed and prosper."
The new owners are also committed to an annual budget for player transfers as well as current club executives and team management, they said in a statement. There were no details on the budget size.
"I believe this is a great step forward for Liverpool, its shareholders and its fans," said Moores, who will continue his involvement in the club by becoming honorary life president.
The deal follows a string of similar takeovers of English football clubs by wealthy individuals, with Russian billionaire Roman Abramovich buying London club Chelsea in 2003 and U.S. sports tycoon Malcolm Glazer buying Manchester United in 2005.
(Writing by Sonia Oxley in London)
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