Liverpool the Latest Club To Be Bought by Americans
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LONDON — First it was Manchester United. Then Aston Villa. And now Liverpool, with a record 18 English championships, also is about to come under American ownership.
Liverpool chairman David Moores said yesterday he will sell his 51% stake in the storied club to George Gillett Jr., owner of the Montreal Canadiens, and Tom Hicks, who owns the Texas Rangers and the Dallas Stars. Moores recommended other shareholders do the same.
The $430.8 million offer from Gillett and Hicks includes an agreement to pay off about $89 million of club debt and pledges to build and finance a 60,000-seat stadium.
“I believe this is a great step forward for Liverpool, its shareholders and its fans,” Moores, whose family has owned the club for decades, said.
“This club is my passion and forms a huge part of my life. After much careful consideration, I have agreed to sell my shares to assist in securing the investment needed for the new stadium and for the playing squad.”
Broadcaster ITV said it also would sell its 9.9% stake, and Gillett and Hicks said they had received acceptances from 62.2% of Liverpool’s shareholders under the deal that values shares at $9,800 each.
The American businessmen need to acquire 90% of the shares through Kop Football Ltd., the British company they formed to launch the bid, before they can assume full control. The Kop is the name given to the section where hardcore fans sit in stadiums such as Anfield, where Liverpool now plays.
“This is truly the largest sport in the world, the most important sport in the world, and this is the most important club in the most important sport in the world,” Gillett said at a news conference in Liverpool. “And what a privilege we have to be associated with it.”
If Gillett and Hicks succeed in taking full control, Liverpool would become the third American-owned Premier League club. Malcolm Glazer, who owns the Tampa Bay Buccaneers, won control of Manchester United in 2005, while Cleveland Browns owner Randy Lerner took over Aston Villa in September.
Gillett stressed that the proposed takeover differs from that of Manchester United by Glazer, who borrowed heavily against future earnings to fund his purchase.
“Owning this great franchise is special,” Gillett said. “We want to add to that luster, not detract from that luster.”
The pair would be co-chairmen of the club, with a son from each man’s family on the board. Rick Parry will stay as chief executive and Moores, who has been chairman since 1991, will become lifetime president.
“When I looked into this over the past month, I was awe-struck with the history and the true passion of the fans compared to other sports I am involved with,” Hicks said in an interview on Liverpool’s Web site.
Liverpool said the proposed takeover would be a “great step forward” for a club that has been European champion five time — more than any other English team — but last won the league in 1990.
“I feel very excited, it has been a long process,” Parry said. “It is about three years since we started, so I’m very excited to be bringing it to a conclusion.”
The deal was announced a week after a Dubai-based consortium pulled out of a proposed takeover when it discovered Liverpool was listening to the rival bid.