Liverpool's controversial American ownership regime took another twist over the weekend following co-owner George Gillett's sale of his controlling interest in his ice hockey franchise Montreal Canadiens in a $550m (£330m) deal. The American magnate will sell his 80% interest in the club and stadium to brewing tycoons the Molson family, subject to NHL approval.
Both Gillett and Hicks have been seeking to sell some of their American sports franchises in order to repay the loans from RBS and Wachovia taken out to fund their takeover and finally invest in the new Anfield stadium project that was promised before taking over the club in 2007.
Gillett's sale represents an excellent piece of business as he paid around £150m for his stake back in 2001 - in effect doubling his money. Gillett's sale of the Canadiens represents a big step towards meeting their July 22 deadline to finance the repayment of the takeover loans.
Concerns had been raised with Gillett's finances although it now appears to be his Texan partner who needs to free up some income. In April, Tom Hicks' investment company Hicks Sports Group defaulted on £325m in loans linked to his Texas Rangers baseball club and ice hockey outfit Dallas Stars. He maintains that default was an act of forebearance, a deliberate stalling tactic to lever a better interest rate from the banks. Last month, Hicks revealed how he is looking to offload a controlling interest in the Rangers. The Dallas businessman bought the Rangers in 1998 for $250 million and Forbes magazine recently valued the franchise at $405 million (£250m) and the club seems well set for sale with increasing revenues and an in-form team sitting top of their division.
Hicks needs to re-negotiate the terms of his defaulted loans for the Rangers and Stars or sell the Rangers in order to have the capital to repay the loan next month and finally invest in the development of the much anticipated Stanley Park site which still lays derelict behind Anfield Road. Following the addition of Liverpool season-ticket holder and investment banker Christian Purslow to the board, it is thought the Americans will now have the financial expertise to re-finance and attract new investment to finally deliver their promise of a new stadium on Stanley Park: something that will finally give the club the financial clout to compete with any club.
Despite the justified and understandable criticism of the owner's behaviour since taking over, the club is in decent financial health with massive potential to grow with an improved commercial operation and expanded stadium bringing more revenue to attract the best talent and even more develop home-grown potential.
One may question the motivation of the owners' intentions but it would not be in their interest to run the club into the ground and their investment in transfers shows an appreciation of modern sport. With the offer of a long-term contract for Benítez, they have shown a willingness to listen to the fans, end their public squabbling and bring some stability and modernity to the management structure. The jury is out on their ability to deliver the investment required for a new Anfield and if the club can strike the balance between a slicker commercial operation generating more funds for Benítez while maintaining the integrity of the club's proud tradition.
Both Gillett and Hicks have been seeking to sell some of their American sports franchises in order to repay the loans from RBS and Wachovia taken out to fund their takeover and finally invest in the new Anfield stadium project that was promised before taking over the club in 2007.
Gillett's sale represents an excellent piece of business as he paid around £150m for his stake back in 2001 - in effect doubling his money. Gillett's sale of the Canadiens represents a big step towards meeting their July 22 deadline to finance the repayment of the takeover loans.
Concerns had been raised with Gillett's finances although it now appears to be his Texan partner who needs to free up some income. In April, Tom Hicks' investment company Hicks Sports Group defaulted on £325m in loans linked to his Texas Rangers baseball club and ice hockey outfit Dallas Stars. He maintains that default was an act of forebearance, a deliberate stalling tactic to lever a better interest rate from the banks. Last month, Hicks revealed how he is looking to offload a controlling interest in the Rangers. The Dallas businessman bought the Rangers in 1998 for $250 million and Forbes magazine recently valued the franchise at $405 million (£250m) and the club seems well set for sale with increasing revenues and an in-form team sitting top of their division.
Hicks needs to re-negotiate the terms of his defaulted loans for the Rangers and Stars or sell the Rangers in order to have the capital to repay the loan next month and finally invest in the development of the much anticipated Stanley Park site which still lays derelict behind Anfield Road. Following the addition of Liverpool season-ticket holder and investment banker Christian Purslow to the board, it is thought the Americans will now have the financial expertise to re-finance and attract new investment to finally deliver their promise of a new stadium on Stanley Park: something that will finally give the club the financial clout to compete with any club.
Despite the justified and understandable criticism of the owner's behaviour since taking over, the club is in decent financial health with massive potential to grow with an improved commercial operation and expanded stadium bringing more revenue to attract the best talent and even more develop home-grown potential.
One may question the motivation of the owners' intentions but it would not be in their interest to run the club into the ground and their investment in transfers shows an appreciation of modern sport. With the offer of a long-term contract for Benítez, they have shown a willingness to listen to the fans, end their public squabbling and bring some stability and modernity to the management structure. The jury is out on their ability to deliver the investment required for a new Anfield and if the club can strike the balance between a slicker commercial operation generating more funds for Benítez while maintaining the integrity of the club's proud tradition.
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