Tuesday, 9 November 2010

Boston Red Sox owners takeover Liverpool

                       


Liverpool currently dealing with relegation threat issues, have another obstacle on their way. Drowned with a heavy economical crises, the Anfield club are rumored to have a change in management. These issues could cause further lack of concentration that could come to a tragical conclusion, if the players do not focus on their objective. Liverpool's troubles off the pitch have coincided with the reds in-game performances, making their worst start to a league campaign since 1953-54, when they were relegated. Torres is not the same poker boy as the previous seasons. Gerrard has the same courage of a warrior but can't be a one man army 24,7. The team is struggling to find its form and soon there might be changes in the dressing room if the results don’t improve. The situation: Liverpool is on the verge of a change in management. Who? The Boston Red Sox baseball team owners.

But the takeover by the New England Sports Ventures (NESV) is not welcomed by the US owners Tom Hicks and George Gillett. The two had already attempted to sack managing director Christian Purslow and commercial director Ian Ayre in a last-ditch bid to keep control of the club.

Liverpool's much criticised owners tried to replace Purslow and Ayre with Hicks's son, Mack Hicks, and Lori Kay McCutcheon, a vice president at Hicks Holdings.

Hicks and Gillett are understood to have argued that the club's English directors were not acting in the best interests of Liverpool and that the NESV bid, as well another undisclosed offer from Asia, “dramatically undervalued the club”.

Taking the matter under considerations, the accusations of the Liverpool owners on Ian Ayre and Christian Purslow seem out of context. The simple reason being that these gentlemen currently seem pessimistic with the economical situation of the team. By removing the burden of acquisition debt, the Boston Red Sox offer allow the staff to focus on investment in the team.

"I am delighted that we have been able to successfully conclude the sale process which has been thorough and extensive," said Broughton.


"The Board decided to accept NESV's proposal on the basis that it best met the criteria we set out originally for a suitable new owner. NESV's philosophy is all about winning and they have fully demonstrated that at Red Sox. We need to go through legal proceedings in order to complete the sale

"We've met them in Boston, London and Liverpool over several weeks and I am immensely impressed with what they have achieved and with their vision for Liverpool Football Club.

The problems: With the refusal by the US owners of releasing their power over the Liverpool FC could only be resolved through a legal dispute.


The Premier League, who have refused to comment at this stage, will also have to approve the latest American buyout.


Purslow, Ayre and chairman Martin Broughton are now consulting lawyers over whether they can resist the owners' attempts to replace them and force through a sale.

"I am only disappointed that the owners have tried everything to prevent the deal from happening.”


Another dilemma is whether the Board will be deducting points from the Anfield based club or not. Basing ourselves on the facts the reds will be deducted 9 points. If the charges will be put to action Liverpool will slip to bottom place with -3 points in hand. A very difficult situation for everyone starting from the players, to the staff and the fans. The only hope is that if the owners show proof of never handling any sort of soccer team before this, the 9 point deduction will not take place.


Who are the interested gentlemen: NESV currently owns a portfolio of companies including the Boston Red Sox, New England Sports Network, Fenway Sports Group and Rousch Fenway Racing.

They are partly owned by futures and foreign exchange trading advisor John W. Henry who has an estimated fortune of £540m.

Henry, 61, made his fortune in hedge funds, but has used it to indulge his sporting interests, most famously with the Boston Red Sox baseball team, but also in the NASCAR motorsport series.The self-made multi-millionaire from Illinois does not have the serious money of the Premier League's wealthiest owners but he does have an excellent track record of success with his teams. After owning a number of minor league teams, and briefly controlling the Florida Marlins, Henry and his partners in New England Sports Ventures, Tom Werner and the New York Times Company, bought the Red Sox in 2002. Within two years of Henry's acquisition their 86-year wait to win the World Series title came to an end. Three years later, they won the title again.

NESV are thought to be offering about £300m for the club, enough to pay back the £240m of loans and £40m of fees owed to Royal Bank of Scotland, which must be settled at the end of next week.



However, this valuation falls well short of the £600m that Hicks and Gillett are thought to want for the club, hence their opposition.Liverpool were put up for sale by Hicks and Gillett in April with debts of £351.4m.
They initially sought an asking price of about £800m, a figure they subsequently dropped to £600m.


The owners paid £174.1m to buy the club in 2007, while also agreeing to take on the club's debt of £44.8m.
Many fans have become increasingly outraged at the pair's ownership of the club, which is said to be currently £237.4m in debt, and their failure to carry through promises to build a new stadium.
The Royal Bank of Scotland (RBS) has set a deadline of 15 October for that debt to be repaid or a penalty fee of £60m will be due.The bank has the option of extending the deadline once again, or calling it in, taking control and then selling the club to the highest bidder.


The doubts: Coming down to the conclusion the fans will be having many doubts too. Is it better to have millionaires not knowing much about the game or someone like the NESV, not as rich as the current US owners but with a good lot of experience in sports and a strong winning concept?

Are they arlready thinking of bringing drastic changes like a successor for Hodgson? Looking at Torres’s current form, will they keep El Nino or sell him to balance the club’s economical situation and point on other talents?

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