Tuesday, December 01, 2009

Financial Woes Put An End To Possibility Of Liverpool FC Takeover

The financial troubles that have beset Dubai have put an end to any potential takeover of English soccer club Liverpool from within the emirate.

Dubai investment Capital (DIC) has long been interested in taking over the club, which is owned by American businessmen Tom Hicks and George Gillett. As long ago as 2006 the club and DIC held talks on a potential takeover, and the eventual sale of the club to Hicks and Gillett did nothing to dampen DIC's interest. Last year, DIC announced it was within three or four weeks of completing a takeover, though that was subsequently blocked by Hicks.

DIC's interest in owning a Premier League club has only increased in the 15 months that Manchester City, another English side, has been owned by the ruling family of Abu Dhabi. Liverpool and Manchester City are just one point apart in the Premier League table.

The current time would be the ideal point for DIC to complete the takeover. Liverpool have struggled in recent weeks, and failed to reach the commercially lucrative Champions League knock-out stages. However, Liverpool's current financial travails are nothing to the problems Dubai faces, and sources close to DIC say that any possibility of a takeover has now been extinguished.

Earlier this month, the emirate asked for a six month delay on payments on US$59 billion of debt, raising the possibility of the largest government default since the Argentine debt restructuring in 2001.

The United Arab Emirates central bank has now issued emergency credit facilities to banks in the region.

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