One of English football’s most influential powerbrokers has expressed grave concerns for the future of Liverpool under the ownership of George Gillett Jr. and Tom Hicks. Keith Harris, the chairman of Seymour Pierce, the investment bank, and the man responsible for brokering some of the biggest takeovers of Barclays Premier League clubs, including the sale of Chelsea to Roman Abramovich in 2003, believes that the Americans could be forced to sell leading players if they are unable to pay off the club’s £350 million debt.
Although Hicks and Gillett have an option to extend the January 25 deadline for repaying the loan by six months, it is far from guaranteed that an extension will be granted, with their main lenders, Royal Bank of Scotland (RBS) and Wachovia, being two of the banks worst hit by the global economic crisis.
Hicks and Gillett are confident that an extension will be granted, but, with the Government set to own up to 60 per cent of RBS after the £20 billion bailout, MPs have lobbied Gordon Brown to prevent the bank from giving the Americans extra time to repay the loan when many believe that they are not in a position, financially, to do that, let alone fund a new 60,000-seat stadium.
“The one that worries me is Liverpool,” said Harris, the former chairman of the Football League, who has been asked to find buyers for Everton and Newcastle United. “Royal Bank of Scotland and Wachovia are two of those that have suffered. Whether they want to lend it [the money] again or not, they may not be able to.” A £500 million offer to buy the club, from Sheikh Mohammed, the ruler of Dubai, remains on the table, although Harris believes the club’s hand could be forced if a buyer cannot be found.
The Times revealed in April how Liverpool may have to sell Fernando Torres and Ryan Babel unless they repay by next summer the £31.5 million borrowed to sign the Spain and Holland forwards.
Harris, who was in Zurich yesterday to address football financiers at the International Football Arena conference, said: “If the banks won’t finance, you have to raise equity. If they can’t find it, it’s a brave banker that would repossess Liverpool Football Club.”
Harris added that he was struggling to find a credible buyer for Everton in the face of a sharp economic downturn. Everton are also hopeful of building a new stadium, but Harris hinted that it would make far better sense financially for the Merseyside clubs to groundshare, a move that has been steadfastly opposed by the clubs and their supporters.
“There is no progress at all [on Everton],” Harris said. “The demographics of Liverpool as an area are not hugely compelling. It is not a very wealthy city and Everton share the city with another club which has been in the vanguard for the last decade. They both have a stadium to build, so the economics need a lot of looking at, whereas Newcastle is a one-club city with a fabulous stadium.”
Torres is expected to be included in Liverpool’s squad for their Carling Cup fourth-round tie at White Hart Lane this evening. However, Harry Redknapp, the Tottenham Hotspur manager, expects to play several fringe players, including Fraizer Campbell, the forward, who came on as a substitute during the 4-0 victory against Dynamo Zagreb in the Uefa Cup group match last week.
Paul Stalteri, Adel Taarabt, Kevin-Prince Boateng and Hossam Ghaly may also play, but Benoît Assou-Ekotto, the left back, is suspended, and Ledley King is expected to be rested. “I’m going to make one or two changes to give the lads who haven’t played an opportunity,” Redknapp said. Giovani dos Santos does not need surgery on an ankle problem, but the forward will be out for up to four weeks.
Although Hicks and Gillett have an option to extend the January 25 deadline for repaying the loan by six months, it is far from guaranteed that an extension will be granted, with their main lenders, Royal Bank of Scotland (RBS) and Wachovia, being two of the banks worst hit by the global economic crisis.
Hicks and Gillett are confident that an extension will be granted, but, with the Government set to own up to 60 per cent of RBS after the £20 billion bailout, MPs have lobbied Gordon Brown to prevent the bank from giving the Americans extra time to repay the loan when many believe that they are not in a position, financially, to do that, let alone fund a new 60,000-seat stadium.
“The one that worries me is Liverpool,” said Harris, the former chairman of the Football League, who has been asked to find buyers for Everton and Newcastle United. “Royal Bank of Scotland and Wachovia are two of those that have suffered. Whether they want to lend it [the money] again or not, they may not be able to.” A £500 million offer to buy the club, from Sheikh Mohammed, the ruler of Dubai, remains on the table, although Harris believes the club’s hand could be forced if a buyer cannot be found.
The Times revealed in April how Liverpool may have to sell Fernando Torres and Ryan Babel unless they repay by next summer the £31.5 million borrowed to sign the Spain and Holland forwards.
Harris, who was in Zurich yesterday to address football financiers at the International Football Arena conference, said: “If the banks won’t finance, you have to raise equity. If they can’t find it, it’s a brave banker that would repossess Liverpool Football Club.”
Harris added that he was struggling to find a credible buyer for Everton in the face of a sharp economic downturn. Everton are also hopeful of building a new stadium, but Harris hinted that it would make far better sense financially for the Merseyside clubs to groundshare, a move that has been steadfastly opposed by the clubs and their supporters.
“There is no progress at all [on Everton],” Harris said. “The demographics of Liverpool as an area are not hugely compelling. It is not a very wealthy city and Everton share the city with another club which has been in the vanguard for the last decade. They both have a stadium to build, so the economics need a lot of looking at, whereas Newcastle is a one-club city with a fabulous stadium.”
Torres is expected to be included in Liverpool’s squad for their Carling Cup fourth-round tie at White Hart Lane this evening. However, Harry Redknapp, the Tottenham Hotspur manager, expects to play several fringe players, including Fraizer Campbell, the forward, who came on as a substitute during the 4-0 victory against Dynamo Zagreb in the Uefa Cup group match last week.
Paul Stalteri, Adel Taarabt, Kevin-Prince Boateng and Hossam Ghaly may also play, but Benoît Assou-Ekotto, the left back, is suspended, and Ledley King is expected to be rested. “I’m going to make one or two changes to give the lads who haven’t played an opportunity,” Redknapp said. Giovani dos Santos does not need surgery on an ankle problem, but the forward will be out for up to four weeks.
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