Liverpool co-owners George Gillett and Tom Hicks are closing in on a deal that will see them sell a significant share in the club to a new investor for around £124 million, Telegraph Sport can disclose.
Gillett was in London last week to hold talks with potential investors, and Liverpool managing director Christian Purslow is understood to have held talks with a number of candidates interested in taking an equity stake in the club.
A long-list of around six serious investors has been compiled with two or three proposals thought to be particularly strong, offering the owners around $100 million (£62 million) each for a share in the club.
It is yet to be decided precisely what stake the two owners are willing to sign over to a new investor, but they are expected to each offer the same share so that they retain parity on the new board.
Hicks and Gillett have been searching for fresh equity all year but the process has gathered pace in recent weeks, with Gillett keen to strike a deal in the near future.
His visit to London last week was significant. Last month he sold his ice hockey franchise the Montreal Canadiens for C$575 million (£333 million), a windfall that should enable him to reduce the level of debt across the family businesses, although it is unlikely any of this money will go towards Liverpool.
In London last week he made it clear that he was keen to strike a deal soon, and urged any potential investors not yet at the table to make their interest know quickly.
A key issue in negotiations will be price and the share on offer. The American co-owners consider the club to be a massively undervalued asset and may seek a price above the current market valuation of around £500-£600million.
They are known to believe that the club's value and profitability could double when the new Anfield development, stalled by the credit crunch, is completed, and may demand a premium for investors who would enjoy the upside of that.
Since buying the club, revenue and pre-tax profits have increased threefold, evidence say the Americans of the attractiveness of the investment.
The new investors will also have to establish a working relationship with the co-owners, whose sometimes fractious relationship has been a distraction in recent seasons.
Both men are keen to break the deadlock with a fresh face at the boardroom table, but they will not want to relinquish control.
A key question for supporters will be what use the Americans put any fresh investment to. The owners have indicated in the past that the intention is to use the money to pay down some of the club's debt, which currently stands at around £240million, and kick-start work on the new stadium development.
The stadium plans have been drawn and planning permission has been granted, and the owners are waiting for a thaw in the credit markets before proceeding. New investment will help start that process, and may inspire some confidence among potential lenders.
Supporters will want to see at least some of the new money used to pay down debt, though there will be concerns that it might be diverted into more troubled parts of the Hicks and Gillett empires. Both men have considerable quantities of debt across their business empires.
The counter-argument from the owners is that actually Liverpool's debt burden is manageable in contrast to some of their rivals, most markedly Manchester United, which carries almost £700million secured against the club and Glazer family interests.
The proposed investment could also affect the future of Rafael Benítez, under huge pressure following a dismal run of results and elimination from the Champions League.
The Spaniard has played off the two Americans expertly during the last three years, securing a £20million new contract and unprecedented control at the club.
Failure to finish in the top four would be a huge blow to Liverpool's self-esteem and finances regardless of the new investment. He will hope that the new investor at the boardroom table has more faith in his abilities to turn the club round than some already there.
Gillett was in London last week to hold talks with potential investors, and Liverpool managing director Christian Purslow is understood to have held talks with a number of candidates interested in taking an equity stake in the club.
A long-list of around six serious investors has been compiled with two or three proposals thought to be particularly strong, offering the owners around $100 million (£62 million) each for a share in the club.
It is yet to be decided precisely what stake the two owners are willing to sign over to a new investor, but they are expected to each offer the same share so that they retain parity on the new board.
Hicks and Gillett have been searching for fresh equity all year but the process has gathered pace in recent weeks, with Gillett keen to strike a deal in the near future.
His visit to London last week was significant. Last month he sold his ice hockey franchise the Montreal Canadiens for C$575 million (£333 million), a windfall that should enable him to reduce the level of debt across the family businesses, although it is unlikely any of this money will go towards Liverpool.
In London last week he made it clear that he was keen to strike a deal soon, and urged any potential investors not yet at the table to make their interest know quickly.
A key issue in negotiations will be price and the share on offer. The American co-owners consider the club to be a massively undervalued asset and may seek a price above the current market valuation of around £500-£600million.
They are known to believe that the club's value and profitability could double when the new Anfield development, stalled by the credit crunch, is completed, and may demand a premium for investors who would enjoy the upside of that.
Since buying the club, revenue and pre-tax profits have increased threefold, evidence say the Americans of the attractiveness of the investment.
The new investors will also have to establish a working relationship with the co-owners, whose sometimes fractious relationship has been a distraction in recent seasons.
Both men are keen to break the deadlock with a fresh face at the boardroom table, but they will not want to relinquish control.
A key question for supporters will be what use the Americans put any fresh investment to. The owners have indicated in the past that the intention is to use the money to pay down some of the club's debt, which currently stands at around £240million, and kick-start work on the new stadium development.
The stadium plans have been drawn and planning permission has been granted, and the owners are waiting for a thaw in the credit markets before proceeding. New investment will help start that process, and may inspire some confidence among potential lenders.
Supporters will want to see at least some of the new money used to pay down debt, though there will be concerns that it might be diverted into more troubled parts of the Hicks and Gillett empires. Both men have considerable quantities of debt across their business empires.
The counter-argument from the owners is that actually Liverpool's debt burden is manageable in contrast to some of their rivals, most markedly Manchester United, which carries almost £700million secured against the club and Glazer family interests.
The proposed investment could also affect the future of Rafael Benítez, under huge pressure following a dismal run of results and elimination from the Champions League.
The Spaniard has played off the two Americans expertly during the last three years, securing a £20million new contract and unprecedented control at the club.
Failure to finish in the top four would be a huge blow to Liverpool's self-esteem and finances regardless of the new investment. He will hope that the new investor at the boardroom table has more faith in his abilities to turn the club round than some already there.
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