ENGLISH PREMIER LEAGUE:TOM HICKS and George Gillett's control over Liverpool is ebbing away after the Royal Bank of Scotland conditioned its latest refinancing offer to the co-owners on the appointment of an independent chairman as well as a commitment from the Americans to sell the club.
Hicks and Gillett are expected to confirm within the next 48 hours their intention to sell Liverpool eventually, with an announcement that Barclays Capital has replaced Rothschild and Merrill Lynch as the bank searching for new investors. The appointment of Martin Broughton of British Airways as the chairman is due to be ratified by the Americans this week, signalling increased influence in the Anfield boardroom by the largely government-owned RBS.
The deal represents a six-month extension to Hicks and Gillett’s existing arrangement with the bank and affords the Americans added time to find an investor willing to meet their €565 million asking price for the club. It also reduces the threat of a “fire-sale” of key assets such as Fernando Torres and Steven Gerrard this summer should the co-owners fail to repay €113 million of their €268 million debt before July, as was stipulated in their last refinancing agreement.
The failure of Hicks and Gillett to secure investment is the latest in a catalogue of unfulfilled promises by Liverpool’s unpopular co-chairmen, who have had a fractured business relationship and have both been badly affected by the global economic crisis. The proposed appointment of Broughton is an attempt to break the state of paralysis over major decisions within the Anfield boardroom and gives Liverpool’s lenders greater assurance over the co-owners’ efforts to sell. Liverpool last night declined to comment on Broughton being an RBS appointment.
The former chairman of British American Tobacco, the British Horseracing Board and current deputy president of the CBI will work alongside Liverpool’s managing director Christian Purslow in the search for new investment. Several parties have expressed interest in Liverpool, who need to reduce their debt before work on the stalled but critical stadium project can commence, but only one, The Rhone Group, has submitted an official offer since Purslow’s global hunt for possible investors began last year. The deadline on their proposed offer of €125 million for a 40 per cent stake in Liverpool passed last Monday.
Hicks and Gillett are believed to be close to finalising the refinancing extension with the RBS, although what funds will be left available to manager Rafael Benitez for new players this summer is uncertain. Reports of an alternative, three-year refinancing deal with Barclays Bank have been denied by officials at Anfield and sources close to the Americans.
Liverpool look increasingly likely to miss out on the revenue streams from the Champions League next season after falling six points behind fourth-placed Manchester City following Sunday’s goalless home draw against Fulham. Their vice-captain, Jamie Carragher, is adamant, however, that Liverpool can withstand the impact of a season outside the European elite, a feeling shared by Anfield officials. “People forget that there have been times when we haven’t played in the Champions League,” Carragher said.“It’s nothing new if we don’t get there. People are saying that if we miss out, then that’ll be it for us, as though we’d never get there again. That’s just nonsense.”
Liverpool’s concerns over the fitness of Torres have increased after scans on the extent of the striker’s latest knee injury proved inconclusive. The Spain international underwent an assessment in Barcelona yesterday and is to remain in Spain for further treatment.
“He received treatment and will continue to do so over the next few days, with the injury being reassessed later this week,” the club confirmed.
Guardian Service
