Chances Of Royal Bank of Scotland Liverpool FC Takeover ‘Remote’

A taxpayer takeover of Liverpool FC is very low on the Royal Bank of Scotland agenda, it emerged yesterday.

As the Anfield board studies bids to buy the club, fears have grown about how long it will take to complete the process.

Yesterday, we revealed any deal could take months, possibly as late as October, before official agreement is reached.

This would mean key discussions extending beyond the October 6 deadline, set by RBS, when they could call in their £237m debt.

Then, the bank could choose to take control of the club, and as RBS are 83% owned by the taxpayer, it would effectively render Liverpool nationalized.

But the Daily Post understands RBS are not making any sort of preparation for such a radical scenario.

Seven weeks away from that deadline, RBS are confident Kop chairman Martin Broughton and Barclays Capital, the investment bank brokering the deal, will secure a buyer. The bank, however, have not ruled out fining American owners Tom Hicks and George Gillett as much as £20m if they do not complete a sale by the end of August.

Reports have suggested Hong Kong- based entrepreneur Kenny Huang is growing impatient with the continuing due diligence by Liverpool FC, but his team appeared to distance themselves from such claims.

The Chinese mogul’s consortium is said to have increased the amount it is willing to pay from £325m to around £400m, which is still short of the £600m premium the Americans Hicks and Gillett want.

Publicly, Liverpool FC is not commenting beyond the statement released last Friday evening, when they confirmed a number of firm takeover proposals, possibly as many as five.

British Airways chairman Broughton has been keen to stress scrutinizing all offers, including those from Syrian Yahya Kirdi and American private equity group, Rhone Capital, will take time. Huang has claimed, in interviews, that he has submitted documents to Anfield bosses proving proof of finance, but he recently added he was only “50% confident” of buying Liverpool while acknowledging the strength of his competitors, known to be Mr. Kirdi and the American private equity group, Rhone Capital, hinting at his uncertainty with the process.

High on the priority list for Liverpool FC is identifying an owner who can pay off the £237m debt, finance a new stadium and provide cash for new players.

Those overseeing the deal are wary of a massive backlash from Liverpool supporters if any new ownership ultimately leaves the club in a financially precarious state.

The result of the protracted diligence is that newly-installed Liverpool manager Roy Hodgson is unlikely to have any significant funds to buy major new recruits before the transfer window deadline on October 31.