Liverpool co-owner George Gillett has moved to strengthen his financial position ahead of the club’s refinancing deadline in July by agreeing a £330 million deal to sell Montreal Canadiens, his National Hockey League franchise.
Gillett and joint owner Tom Hicks are due to refinance their £350 million loan with the Royal Bank of Scotland and Wachovia on July 24, although the pair are expected to agree a deal to secure an extension to the deadline.
Earlier in June, Liverpool’s accountants, KPMG, warned of “significant doubt on the group’s and parent company’s [Kop Football Holdings Ltd] ability to continue as a going concern” without an extension to the £350 million loan.
The company formed by Gillett and Hicks suffered a loss of £42.6 million last year, largely on interest repayments, despite a record turnover of £164.2 million. The pair took out a loan of £350 million when they bought the club in 2007.
Both Gillett and Hicks have been actively attempting to sell their American sports franchises in recent months to raise funds to consolidate their position at Liverpool. While Gillett has struck a deal with brewing giants Molson for the Canadiens, Hicks continues to search for a buyer for his Texas Rangers baseball franchise.
The Canadiens deal has yet to be approved by the NHL’s board of governors, but although it could take up to six weeks for the sale to be ratified, it is not expected to be blocked.
NHL commissioner Gary Bettman said: “I think to the extent that they [Gillett] have been able to find people who are obviously passionate about the game and structure a transaction that makes sense for everybody, that’s a real plus for the franchise.”
Despite the sale of the Canadiens, uncertainty still surrounds the futures of Xabi Alonso and Javier Mascherano. While reports of Chelsea preparing a move for Fernando Torres have been dismissed as a non-starter on Merseyside, Real Madrid are closing in on Alonso and Barcelona remain hopeful of signing Mascherano.
Gillett and joint owner Tom Hicks are due to refinance their £350 million loan with the Royal Bank of Scotland and Wachovia on July 24, although the pair are expected to agree a deal to secure an extension to the deadline.
Earlier in June, Liverpool’s accountants, KPMG, warned of “significant doubt on the group’s and parent company’s [Kop Football Holdings Ltd] ability to continue as a going concern” without an extension to the £350 million loan.
The company formed by Gillett and Hicks suffered a loss of £42.6 million last year, largely on interest repayments, despite a record turnover of £164.2 million. The pair took out a loan of £350 million when they bought the club in 2007.
Both Gillett and Hicks have been actively attempting to sell their American sports franchises in recent months to raise funds to consolidate their position at Liverpool. While Gillett has struck a deal with brewing giants Molson for the Canadiens, Hicks continues to search for a buyer for his Texas Rangers baseball franchise.
The Canadiens deal has yet to be approved by the NHL’s board of governors, but although it could take up to six weeks for the sale to be ratified, it is not expected to be blocked.
NHL commissioner Gary Bettman said: “I think to the extent that they [Gillett] have been able to find people who are obviously passionate about the game and structure a transaction that makes sense for everybody, that’s a real plus for the franchise.”
Despite the sale of the Canadiens, uncertainty still surrounds the futures of Xabi Alonso and Javier Mascherano. While reports of Chelsea preparing a move for Fernando Torres have been dismissed as a non-starter on Merseyside, Real Madrid are closing in on Alonso and Barcelona remain hopeful of signing Mascherano.
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