Thursday, April 15, 2010

Reds ‘Have £50 Million Transfer Budget’ As Hicks And Gillett Prepare To Sell Club

The imminent appointment of Martin Broughton, the chairman of British Airways, as chairman of English soccer club Liverpool FC and an extended deadline from the club's banks, are expected to pave the way for the sale of the Anfield team.

Tom Hicks and George Gillett, Liverpool's American owners, are standing down as co-chairmen of the club, while Royal Bank of Scotland and Wachovia are believed to have offered Hicks and Gillett a six-month extension on loans of around US$365 million.

'Confirmation of the sale process and the boardroom reshuffle will mark the beginning of the end of the Americans' tenure, though the sale of the club is unlikely to be swift,' reports the Daily Telegraph. 'Prospective buyers are expected to wait to begin negotiations until the end of the season, when Liverpool's participation in Europe and the fate of manager Rafael Benítez, who has again been linked with Juventus, is clearer.'

The newspaper adds that Hicks and Gillett are expected to provide transfer funds if, as expected, a buyer has not been secured by the summer transfer window. The Daily Mirror goes further, claiming that Liverpool's summer transfer budget will be UK£50 million (US$77 million), though it is unknown whether Benitez will be the man spending that money.

Benitez, who has repeatedly called for fresh investment, has reportedly been given ten days by Juventus to decide whether to make the switch to Italy. However, his position at Liverpool is far more secure than would normally be expected of a Liverpool manager whose team may well miss out on Uefa Champions League qualification. As well as having the memory of a Champions League win in 2005 and a second-place finish in the Premier League last season, Benitez would be owed a substantial sum of money under a contract signed last year should he be sacked. With Hicks and Gillett apparently keen to sell Liverpool, reports indicate that they are unwilling to make that payment.

Meanwhile, earlier this week, Gillett's Nascar team reportedly defaulted on a US$90 million loan for technical reasons.

New owners would hope to finally begin the process of moving Liverpool to a new stadium close to their famous home, Anfield, in the city's Stanley Park. The move was a key factor in Hicks and Gillett's takeover, but Liverpool has been unable to secure the necessary financing in the last three years.

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