Gillett and Hicks Buy Liverpool FC for $343 MillionBy Ryan Mills
http://www.bloomberg.com/apps/news?pid=20601082&sid=aMA1WsV5euhg&refer=canadaFeb. 6 (Bloomberg) -- Liverpool FC agreed to a 174 million- pound ($343 million) takeover offer from U.S. sports tycoons George Gillett and Tom Hicks, five days after Dubai's ruler abandoned a bid for English soccer's most successful team.
Gillett and Hicks, the founder of leveraged-buyout firm HM Capital Partners LLC, will pay 5,000 pounds a share, Liverpool said. The pair will also take on debt of 44.8 million pounds and fund a new stadium costing 215 million pounds.
``It is the beginning of a new era,'' Liverpool Chief Executive Rick Parry said at a press conference at the club's Anfield stadium. ``They are bringing to the table tremendous and relevant experience, a passion for sport, real resources and a strong commitment to the traditions of Liverpool.''
The accord caps a week of acrimony in which Liverpool accused Dubai International Capital LLC of bullying shareholders into backing its offer, 11 percent less than today's tender. Liverpool, which won the last of its record 18 English league titles in 1990, has been seeking an investor for the past three years and is now poised to become the third elite English team to be bought by owners of U.S. sports franchises.
Hicks paid $250 million for Major League Baseball's Texas Rangers in 1998 and also owns the National Hockey League's Dallas Stars.
Gillett owns ice hockey's Montreal Canadiens and used to run Miami Dolphins of the National Football League and basketball's Harlem Globetrotters. He's also chairman of Booth Creek Ski Holdings Inc., which operates six U.S. ski resorts.
Glazer, LernerThe two men follow Malcolm Glazer, owner of the Tampa Bay Buccaneers, and Randy Lerner of the Cleveland Browns into Premiership soccer. Glazer in 2005 bought Manchester United and Lerner last year took over at Aston Villa. West Ham, Portsmouth, Chelsea and Fulham are also foreign-owned.
Gillett and Hicks, using a vehicle called Kop Football Ltd., said they've received undertakings to sell 62.2 percent of shares. Liverpool Chairman David Moores, who was accused of greed by some fans after stalling on the Dubai bid, owns 51.6 percent. His family has owned the club for more than 50 years. Broadcaster ITV Plc has agreed to sell its 10 percent.
Unlike Glazer, who saddled United with borrowings of $1.1 billion, Liverpool's new owners said their offer would leave the club debt-free.
`No Debt'``We have purchased the club with no debt on the club, so I think in that regard it is different,'' Gillett said at the press conference. ``We believe in the future of the club, the future of the league, the new TV contracts are outstanding and we are proud to be a part of it.''
In a statement, Moores said the deal was a ``great step forward'' for Liverpool. ``After much careful consideration, I have agreed to sell my shares to assist in securing the investment needed for the new stadium and for the playing squad,'' he said.
In an interview on the club's Web site, Hicks said Gillett phoned him around a month ago about the venture.
``We believe we bring some experience which the management can draw on to make things even better,'' said Gillett, who along with Hicks met home-grown Liverpool players Steven Gerrard and Jamie Carragher yesterday. ``If you were to put a list of our objectives, money would be nowhere near the top.''
Gillett's initial approach stalled last year as Liverpool fans grew angry at reports that he favored sharing a stadium with city rival Everton. Gillett today denied he ever talked to Everton about a ground share and said such a plan didn't make sense.
European CupParry and Moores previously sought to drum up backing for the Dubai bid. Liverpool had also turned down interest from investors including deposed Thai Prime Minister Thaksin Shinawatra, 5 percent shareholder Steve Morgan, Hollywood movie producer Mike Jefferies and Juan Villalonga, the former chairman of Spanish phone company Telefonica SA.
``The price is not a factor,'' Parry said last week.
Although Liverpool has been overshadowed in England by Manchester United and Chelsea in recent years, the Reds did lift the continent's elite European Cup for the fifth time two years ago. No other English team has done so more than twice and, elsewhere, only Real Madrid and A.C. Milan have had more success.
Even so, Liverpool's annual sales trail those of Manchester United, winner of eight league titles in 14 years, and Chelsea, champion the past two seasons. Liverpool's proposed move from its 45,000-capacity Anfield home to a new 60,000-seat arena is an attempt to close the gap.
Naming RightsGillett said the club would consider selling naming rights to the stadium to raise funds for transfers. United Arab Emirates-based Emirates airline paid 100 million pounds to give its name to Arsenal's new stadium and sponsor its shirts.
Work on Liverpool's Stanley Park site is scheduled to start next month.
``If the naming rights are worth one great player a year in transfer spending, we will certainly consider that as an option,'' Gillett said.
Hicks is involved in the redevelopment of land around Ameriquest Field, where the Rangers play, in Arlington, Texas.
He also is overseeing commercial redevelopment of land near the American Airlines Center in Dallas, where the Stars and National Basketball Association's Dallas Mavericks play, and around a minor league baseball park in Frisco, north of Dallas.
