We'll make Liverpool the biggest spender in World's football
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China's Liverpool bid promises huge transfer fund, new stadium and end to debts... but no windfall for unpopular American owners
The Chinese investors trying to buy Liverpool have pledged to rival Manchester City and Real Madrid by making them one of the biggest spenders in world football.
The cash-strapped club would also be made completely debt-free and American owners Tom Hicks and George Gillett have been warned not to expect a windfall from the deal.
The bid fronted by Kenny Huang also promises to exploit the huge Asian market and follow through on promises to construct the long-delayed new stadium.
You won't make a fortune: Gillet (left) and Hicks have been warned
Marc Ganis, whose Chicago-based company Sportscorp has helped form the investment group, said it first contacted Liverpool chairman Martin Broughton on Monday, a day after reports of a possible bid first surfaced.
UPPING THE BID
The Chinese investors four objectives are...
- To make Liverpool debt free;
- make a significant equity investment and construct the long-delayed new stadium to replace Anfield;
- invest a large amount that would be available for player transfers;
- have an Asian initiative to expand Liverpool's fan base and commercial activities with the goal of creating new economic value for the club using QSL's platform in China.
'We haven't submitted a formal proposal but we submitted the broad parameters of what a proposal would look like to see if it would be welcomed, and it was,' he said.
'Liverpool are and always should be one of the highest-spending clubs in all of football. And our financial models presume Liverpool will be at or near the top in spending on players every year.'
A company called QSL Sports would be controlling owner of the limited liability corporation that would own Liverpool.
QSL is co-headed by Huang, a Hong Kong businessman, and Guang Yang, executive vice president of Franklin Templeton Investments and chief investment officer of the China Life/Franklin Templeton Fund.
Ganis said those two would be the only owners involved in the management of the club. Other investors would be passive, and each would own no more than 20 per cent.
China Investment Corp - the country's sovereign wealth fund - would not have a direct ownership stake in the club. However, Ganis said it may be part of an investment vehicle organized by Yang and his financial team that would have a passive ownership interest.
'What is not one of our goals in the enrichment of the existing owners,' Ganis said. 'If we submit a proposal and it is accepted, it would be focused on the future and not the past.'
Looking up: David Ngog scores against Rabotnicki to help Liverpool progress in the Europa League
Barclays have told potential bidders they will have to show they have the financing to go through with the proposals. After QSL's interest emerged, former Syrian footballer Yahya Kirdi claimed on Wednesday that he was fronting a consortium of investors from the Middle East and Canada that was close to completing a takeover.
Liverpool have won 18 English league titles - but none since 1990. Beset by infighting between Hicks and Gillett plus player injuries, they failed to qualify for this season's Champions League, losing tens of millions in revenue.
But, amid the promise of a takeover, captain Steven Gerrard and star striker Fernando Torres have decided to remain with the club under new manager Roy Hodgson.
Ganis said any deal would not close until well after the summer transfer window ends on August 31, and Hodgson has already come to terms with the fact he can't spend immediately.
Promises: Kenny Huang is fronting the Chinese bid
Hicks, whose MLB team the Texas Rangers were auctioned this week in US Bankruptcy Court in Fort Worth, bought Liverpool with Gillett three years ago in a deal valued at £271million. Hicks said he wants £600m to £800m for the club, whose known debt last stood at £236m.
Ganis said his group will not meet the owners demands.
'If anybody wants to, good luck,' he said, without disclosing what his group is willing to bid. 'We know what we would be prepared to do. If somebody else wants to look at it in a different way, it's their money. That would be their business, not ours.'
His group aren't concerned about high-spending owners in the Premier League, who include Manchester City's Sheik Mansour bin Zayed Al Nahyan and Chelsea's Roman Abramovich.
Ganis said the Financial Fair Play rules that begin for European football this season will help curb extreme spending on transfers.
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'That creates certain constraints that many observers feel are quite responsible and will reduce the risk of irrational money being spent,' he said.
Ganis said that they have been impressed in many ways with the manner in which Liverpool are being operated.
'From what we have seen from afar, many of the people currently running Liverpool are doing a good job,' he said. 'There shouldn't be an expectation there would be a mass upheaval if we submit and are approved.'
Ganis and the China-based group began forming last spring as a potential investor with another group that evaluated a potential investment in Liverpool.
Ganis contacted the Royal Bank of Scotland, which holds Liverpool's debt, and was put in contact last week with Broughton and Barclays Capital, which is attempting to sell the club for the co-owners.
QSL, in conjunction with the Chinese government, owns and operated two professional sports leagues and one minor league. QSL also owns sports publications and in September will roll out an all-sports website.
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i think the point is who's spending this money? if it's jose mourinho, i think we can expect good progress on the squad performance. if it's rafael benitez, i think we're going down.