Saturday, April 12, 2008

Revealed: Why Tom Hicks Told Rick Parry To Resign From Liverpool FC

As Liverpool FC chief executive Rick Parry last night defiantly refused to resign after a request to stand down from co-owner Tom Hicks, the Daily Post can reveal the reasons for the sensational demand.

In a statement, not dissimilar to quotes given by manager Rafael Benitez at the height of a fall-out with the club’s American owners last year, Parry said: “It is my intention to remain focused on the job of serving Liverpool Football Club to the best of my abil- ities at this very important time of our season.”

The unprecedented stand-off comes on the same day it is learned a deal between Dubai International Capital and LFC’s owners is reportedly just a phone call away.

Comments made by Sameer Al Ansari, CEO of Dubai International Capital, to a Middle East business magazine about with-drawing DIC’s offer for LFC were said to be a plea for Hicks to sort his affairs and agree to sell.

Al Ansari has said he “would love to own the club”, but wanted to have control over Liverpool’s destiny before investing.

It is understood that the letter sent, but not yet received by Parry, called on him to “voluntarily resign” because of “commercial under-performance” and “frustrations” at the way he had handled player transfers.

One insider said: “This is just not the Liverpool way, especially after the success of the team on the pitch this week.”

The three-page letter was sent to Parry as Hicks’ 50% share in the club would not allow him to unilaterally dismiss Parry.

It has been circulated to mem-bers of the board, and he is expec-ted to refuse the request after con-sulting lawyers over his position.

A source said: “The basic con-tents of the letter are the commer-cial performance of the club since Rick Parry has been on the board.

“In particular how the club has fallen behind to the big players – [Manchester] United, Arsenal, and Chelsea. He also cites frustration in terms of how some of the player transfers have been handled.”

A report by Deloitte accoun-tants is thought to be the source of Hicks’s belief that Liverpool are failing to capitalise fully on commercial opportunities.

Deloitte's Football Money League, based on revenues gener-ated during 2006/7, places Liver-pool eighth in the list of richest clubs, with revenues of £133.9m.

Real Madrid topped the list with revenues of £236.2m, Manchester United were in second position with £212.1m, Chelsea were fourth with £190.5m, and Arsenal came in fifth by generating £177.6m.

The sensational outbreak of warfare in the Anfield boardroom follows the snubbing of Parry and former owner David Moores in the original allocation of tickets for Liverpool’s first Champions League Quarter Final with Arsenal at the Emirates Stadium.

They originally were told they did not have tickets for the match because Hicks and co-owner George Gillett had taken the allocation. Parry and Moores were later found tickets after behind-the-scenes turmoil.

Last night, claims emerged that Hicks’s son Tom Jnr has been sending texts to fans’ groups over the issue of Parry’s continued involvement at the club.

It is believed Parry’s legal team will also be investigating these allegations.

Contrary to a report in Arabian Business magazine that DIC were pulling out of bidding for the club, Sheikh Mohammed and Al Ansari were last night said to still be keen on completing a deal.

Their £500m offer for the club is understood to remain on the table. That would pay off the club’s £350m debt and leave both Hicks and Gillett with £40m apiece.

A deal could apparently be struck as soon as Hicks’s lawyers call DIC’s London-based chief negotiator, Amanda Staveley.

Although relations with Hicks broke down more than a month ago, Staveley is said to be on good terms with Gillett and in “constant discourse” with him.

The only sticking point on a deal, insiders say, is Hicks.

He has recently been in London with American investment bank Merrill Lynch seeking credit with which to buy out Gillett.

It is thought a “first refusal” agreement between the Americans, in which one must offer their slice of the club to the other before selling to a third party, comes to an end in about six weeks’ time.

After the pre-emption rights expire, Gillett would be free to sell his share to DIC.

Although DIC would likely make an offer, sources close to the Dubai consortium say they will not rest until they have secured 100% of the club.

Both Sheikh Mohammed and Al Ansari are fervent supporters of the club. Al Ansari will almost certainly attend the Moscow final of the UEFA Champions League if the team fend off Chelsea in the semi-final.

Al Ansari was quoted in Arabian Business saying: “We will continue to be interested and would love to own the club but we are not going to put ourselves in a difficult situation where we make the investment but we have no control over the destiny of the club and we cannot influence the success of the club.

“Unfortunately, the terms that have been put on the table do not allow us to do that.”

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