George Gillettt (right) and Tom Hicks bought Livepool FC for £435 million in February 2007. (Christopher Furlong/ Getty Images)
It was a relationship that began pleasantly enough, indeed to those of us on the outside it bordered on a cringe-worthy love-in. Yet just over a year down the road it is remarkable to recall the friendly welcome that was afforded to George Gillett and Tom Hicks after they had just purchased Liverpool football club.
The North American businessmen were instantly hailed as the antidote to all of the clubs ills. With billionaire owners backing the team Liverpool fans, who have not witnessed their side win the domestic championship in the Premier League era, convinced themselves that their club could once again compete with the likes of Arsenal, Chelsea and Manchester United.
Although both men admitted, albeit rather reluctantly, that they knew very little about the sport of soccer they understood exactly what the fans wanted to hear: they were prepared to invest in the playing staff, they would support manager Rafael Benetiz and they both had the utmost respect for the traditions of Liverpool FC. At the press conference, which was hastily arranged to announce the agreement of the £435 million pound deal, the pair spoke with warmth about the history of the club, the passion of the fans and their determination to see the team reach the peaks it once scaled. During the press conference the men also announced that they were not going to saddle the club with the cost of the buyout, and that they themselves would foot the bill. The charm offensive appeared to be working.
However when the official documentation of the deal emerged, it became clear that they had borrowed money to complete the purchase. In fact the majority of the money, £298 million, was being lent form the Royal Bank of Scotland at extortionate rates of interest.
Controversies
In the summer of 2007 Hicks and Gillett delivered spectacularly on two of their key assurances. Impressive plans were drawn up for the creation of a new 60,000 seated stadium in Stanley Park and almost £50 million pounds was spent in the transfer market on the likes of Fernando Torres and Ryan Babel. Understandably, Liverpool fans felt optimistic about their prospects for the current season.
The North American businessmen were instantly hailed as the antidote to all of the clubs ills. With billionaire owners backing the team Liverpool fans, who have not witnessed their side win the domestic championship in the Premier League era, convinced themselves that their club could once again compete with the likes of Arsenal, Chelsea and Manchester United.
Although both men admitted, albeit rather reluctantly, that they knew very little about the sport of soccer they understood exactly what the fans wanted to hear: they were prepared to invest in the playing staff, they would support manager Rafael Benetiz and they both had the utmost respect for the traditions of Liverpool FC. At the press conference, which was hastily arranged to announce the agreement of the £435 million pound deal, the pair spoke with warmth about the history of the club, the passion of the fans and their determination to see the team reach the peaks it once scaled. During the press conference the men also announced that they were not going to saddle the club with the cost of the buyout, and that they themselves would foot the bill. The charm offensive appeared to be working.
However when the official documentation of the deal emerged, it became clear that they had borrowed money to complete the purchase. In fact the majority of the money, £298 million, was being lent form the Royal Bank of Scotland at extortionate rates of interest.
Controversies
In the summer of 2007 Hicks and Gillett delivered spectacularly on two of their key assurances. Impressive plans were drawn up for the creation of a new 60,000 seated stadium in Stanley Park and almost £50 million pounds was spent in the transfer market on the likes of Fernando Torres and Ryan Babel. Understandably, Liverpool fans felt optimistic about their prospects for the current season.
However, by the Christmas period the team were struggling in the league and were on the verge of elimination in the UEFA Champions League. This mini-slump became an all-out crisis when co-owner Tom Hicks admitted to the Liverpool Echo that he had talked to Jurgen Klinsmann about the “possibility” of him replacing Rafael Benitez. This controversy fused with the unease that the fans felt about the borrowings caused irreconcilable differences to emerge between the supporters and the ownership team.
An artists impression of the proposed 60,000 seated stadium in Stanley Park.
The Future?
It would seem that the only plausible solution to the situation is for Hicks and Gillett to both sell there share in the team to an outside buyer. The men, whose own relationship has suffered as a consequence of the ownership saga, stand to make a considerably healthy profit on their initial investment.
Liverpool Chief Executive Rick Parry recently remarked on the ownership issue: “There is no question that to succeed you need unity at the top, unity at the club, and everyone pulling in the same direction. Without that, it is extremely difficult to progress and it is clear from George has said the unity is not there.”
Currently there appear to be only two groups prepared to rescue the business partners. The first is Dubai International Capital (DIC) who have been courting the club since before the Hicks-Gillett takeover. The group is the “investment arm” of the Dubai government and have a history of success in the field of sports ownership. Yet there remain fears amongst fans that DIC do not have a true appreciation of what the club represents to the community and that they view it purely as an investment opportunity.
The alternative, which is perhaps even more intriguing, is Share Liverpool. This is a group of committed supporters who want to buy the club for £500 million, through 100,000 fans each paying £5,000 for a share. If successful, the team would become a community-owned asset, operated by elected fans whose sole motivation is to achieve on-field success rather than profit.
Whatever transpires Liverpool fans everywhere will be hoping for a happy ending to this sad story which has tarnished the image of their club.
This map illustrates Liverpool's current ground (Anfield) in relation to the site of their proposed new stadium in Stanley Park.
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It would seem that the only plausible solution to the situation is for Hicks and Gillett to both sell there share in the team to an outside buyer. The men, whose own relationship has suffered as a consequence of the ownership saga, stand to make a considerably healthy profit on their initial investment.
Liverpool Chief Executive Rick Parry recently remarked on the ownership issue: “There is no question that to succeed you need unity at the top, unity at the club, and everyone pulling in the same direction. Without that, it is extremely difficult to progress and it is clear from George has said the unity is not there.”
Currently there appear to be only two groups prepared to rescue the business partners. The first is Dubai International Capital (DIC) who have been courting the club since before the Hicks-Gillett takeover. The group is the “investment arm” of the Dubai government and have a history of success in the field of sports ownership. Yet there remain fears amongst fans that DIC do not have a true appreciation of what the club represents to the community and that they view it purely as an investment opportunity.
The alternative, which is perhaps even more intriguing, is Share Liverpool. This is a group of committed supporters who want to buy the club for £500 million, through 100,000 fans each paying £5,000 for a share. If successful, the team would become a community-owned asset, operated by elected fans whose sole motivation is to achieve on-field success rather than profit.
Whatever transpires Liverpool fans everywhere will be hoping for a happy ending to this sad story which has tarnished the image of their club.
This map illustrates Liverpool's current ground (Anfield) in relation to the site of their proposed new stadium in Stanley Park.
View Larger Map
Please post a comment
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