Liverpool FC Forum

by **stapo1000** » Thu May 13, 2004 10:07 pm

yeah! it's always been the boards policy to stick with the manager no matter what(even if he's seriously underachieved). we saw it with roy evans and now with gh(although i'd like to give him another chance). now it seems that morgan's bid threatens this policy as well as a few others.(ground sharing, criticising players...) but how the ****** can the board choose shinawatra over him. a man whom it took about an hour to get the names of 4 liverpool players. there's something very fishy about him. ground share or not, at least morgan had the club's best interests at heart.

by **azriahmad** » Fri May 14, 2004 4:56 am

Guys, I will ask you this.

Imagine that you are Moores and your worst critic is Morgan. This guy Morgan has been criticising you and the way you run the club, the most open incident was the AGM. Being criticised this openly, obviously Moores wouldn't like to have Morgan as a board member, not unless Morgan completely buys up Moores' shares at a pri9ce Moores can't refuse. However, this is not happenning, as Taksin wants only 30% and it is not disclosed how much Morgan will get from his offer.

Morgan's offer is for Liverpool to undertake a fresh new share issuance to raise 73 million which will 100% go into Liverpool's coffers. Morgan will underwrite the issuance, meaning that Liverpool will get the funds even if the existing shareholders don't take up this new share issuance, Morgan's company will buy the shares not taken up. The issue price is at 1.75 each.

Taksin's 60 million proposal is to partly buy shares from Moores and partly subscribe to a new share issuance. This means Liverpool gets some money and Moores gets some money as well. Taksin will not want a really active board representation, unlike Morgan.

If we are thinking for the best of the club, Morgan's offer wins hands down as all of the money on offer goes to the club. For Moores, Taksin's offer is better because he gets to cash in, perhaps closer to 4 pounds per share, and Liverpool also gets some funds, although a lot less than what Morgan offfered.

We read than Moores controls 51% of Liverpool's equity. Even if all the shareholders were to vote, Moores will still win. As he controls the board, it is easy to see how he can easily influence them to reject Morgan's proposal. he has too much to lose, and will have to give Morgan and an affilliate an active role in the club.

Yep, at the end of the day, money still talks and Moores has voted to go with the proposal which gives him money and still not lose his position and influence in the boardroom, even if Morgan's proposal gives much more money to Liverpool. Don't be surprised, just be disappointed that a true fan lost in this money game.

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