by Paul C » Fri Nov 30, 2007 1:45 pm
Liverpool dismiss claim Tom Hicks is set to sell out
Nov 30 2007
by Tony Barrett, Liverpool Echo
LIVERPOOL today emphatically denied reports that co-owner Tom Hicks is looking to sell his shares.
A report claimed that Hicks was preparing an exit strategy, just nine months after joining business partner George Gillett in a £298m takeover.
Chief executive Rick Parry said: "I have seen the story, and as far as I am aware it is complete rubbish."
The report claimed that Hicks had placed a staggering guide valuation of £1billion on the Reds, and that the Dubai International Capital group - who were set to buy the club before the deal collapsed in acrimony - were considering a new bid.
But Anfield supremo Parry, who is in regular contact with the co-owners, insists the story is new to him.
The Americans are currently understood to be working on a £500m refinancing package to fund the new Anfield stadium and refinance the £298m they borrowed from the Royal Bank of Scotland to buy the club this year.
There have been fears the duo, who claimed to have "purchased the club with no debt on the club," could sink the Reds into debt depending on the level of their own personal fortune sunk into the refinancing deal.
The Americans originally took over the club with a loan scheduled to be repaid by 2009.
They always intended to refinance, but a worldwide credit crunch means the terms they are refinancing under are likely to be worse than those received from the RBS.
A £500m loan is 16 times Liverpool's operating profit for 2007.
Manchester United's level of debt is only eight times their operating profit, but the Americans believe the new stadium plan will very quickly become self-financing.
Arsenal's move to the Emirates Stadium raised turnover from £37m in 2006 to £200m in 2007 and doubled their matchday revenue from £44.1m to £90.6m over the same period.
But in order to replicate that success, the Reds must maintain money-spinning Champions League progress in the short term.
Though Hicks himself has not been available to comment on the sell-out report, he is understood to have been aware of the rumour. Not only is he said to have dismissed the claim, he is understood to have been angered by it.
Meanwhile Pepe Reina today called on the Reds to forget about their European exploits and to prepare for the physical challenge which will be posed by Bolton at the weekend.
He said: "The dressing room is very confident because we are in a good moment.
"It is extremely important for us to keep winning and we have a difficult game against a physical team so we have to prepare well for that."