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Tom Hicks, the Liverpool co-owner, has terminated talks with a Dubai consortium over acquiring a minority stake in the Premier League club.
His decision comes hours after Dubai International Capital, he private-equity investment arm of the Dubai Government, said its negotiations with co-owner George Gillett Jr. were moving along. Over the weekend, Hicks denounced DIC's conduct in trying to acquire 49 percent of the Reds from Gillett.
"Based on a meeting held earlier today in Dubai between my representatives and officials of Dubai International Capital LLC, as well as other recent contacts between us and them, I have decided to terminate any further discussions with DIC regarding their possible purchase of a minority stake in Kop and, in turn, in the Club.," Hicks said in a statement.
"DIC made it clear that if they invested in the Club, they would want it to be managed by committee. Based on my thirteen years of successful experience as an owner of professional sports teams, and based in particular on the situation at Liverpool Football Club over the past year, it is clear to me that such a committee approach would not be in the best interest of Kop, of the Club or of the Club's loyal and passionate supporters.
"Accordingly, I have decided to exercise my right under the Kop Football (Holdings) Limited partnership agreement to veto any sale of any portion of Kop and the Club to DIC.
"I and my colleagues and representatives will continue to explore a number of other options with regard to the ownership of Kop and the Club aimed at achieving an appropriate ownership, financial and organizational structure for Kop and the Club over the long term."
DIC had said earlier on Monday that talks to buy a stake in Liverpool Football Club were at an 'advanced' stage.
"Dubai International Capital confirms that it is in advanced discussions with the co-owners of LFC but that no agreement has been reached on price or shareholding percentage," DIC said in a statment.
DIC had agreed a deal with George Gillett Jr, Liverpool’s other co-chairman, to buy 98 per cent of his stake in the club – 49 per cent of the company – with Hicks buying the remainder, which would give him 51 per cent of the shareholding.
DIC had accepted that Hicks would not sell his share in Liverpool in the near future, but had insisted on a clause giving them first refusal to buy his stake.
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Having lived most of the last 15 years in the Emirates, I can safely say the reasons for rejection - the use of a committee - was a sound one.
Just about everything run in such a fashion here is a disaster no matter how much money is poured in, primarily due to the lack of a single unifying vision, and instead a watered down compromise to cater for everyone. And just getting that takes 3 times as you'd think normal.
No doubt DIC had intended Anfield to be used as a giant clothes horse for advertising, so consider yourself lucky.
Andrew, Abu Dhabi,
This is one of the worst days I've had in a long long time. We only live one life and I don't want to be 50 years old to see my Liverpool do well. We would've become the best under DIC, because Mohammed bin Rashid Al Maktoum is only interested in being the best - and the best only.
What can we do to get Hicks out? Not go to any of the matches? I'm sure the players would understand. Throw eggs? Liverpool FC is just going downwards and downwards.
Furthermore, how the hell is he going to get another £300 million for that stadium? The very stadium he said will have started work on in March 2007.. It is now March 2008 and he doesn't even have the money for it yet!
Under DIC we would have no debts, a lot of money for transfers and no shenanigans behind the scenes, because DIC are civilised.
I really despise Hicks so much. I wish he would just go away. YOU'RE NOT WANTED.
Farhan, UK,
I'd rather have a genuine Liverpool supporter like Al-Ansari at the head of the club. A man that stood in Istanbul with fellow Kopites. I did'nt see the Americans in Istanbul. One of our current owners has already stated his aim is to use the money from LFC to strengthen his American sports teams.
Any LFC fan can see that it was the current owners, rather than DIC who have the short term plan. Afterall a massive corporation like DIC would not need to buy LFC to make profit, there are far more better ways to do that than buy a football club.
The current takeover attempt proves that they have a long term investment plans, unlike the current owners. Why would the head of such a bid, who is actually a lifelong fan, be interested in short term plans. Consider that he also has no real need of a quick buck and I think people are trying to smear the DIC bid. Today is a very bad day for LFC, and its future. The club will be sadled with debt and will be exploited by Mr. Hicks.
Nick, Liverpool, UK
Ian - The money to be made from soccer isn't in the same league as that made from sports here, and is insignificant compared to the amount of money DIC make from others sources, especially given the capital investment required to spend on players. DIC want to own Liverpool to make them successful and use them as a marketing tool for Dubai as a place to do business. As long as the club doesn't become a huge cash sink as Chelsea is becoming for Abramovich I doubt they are overly worried about the relatively small returns.
Neil, Baltimore,
Liverpool FC's problems this year have been on the pitch and not anything at all to do with the NA owners. The sooner fans understand this the more they can pressure management to do a better job in the Premier League.
And why do fans so routinely think that DIC would represnt a better owner?
Ian, Madison, USA
We all agree that Hicks is as useful to Liverpool as a pair of sunglasses on a man with no ears. However, with this so called powershare (which will hopefully result in DIC buying Hicks out in time), maybe the super stadium plans can be reinstated. We need to look at how we can USE Hicks to our advantage, before turfing him out.
More importantly short term - Inter Milan. Come on Rafa, show the world you are untouchable in European football, and ultimately in time, in the Premiership. Come on lads, we are all behind you!
YNWA.
Sadat Rahim, Cheshire, UK
Rick Parry (CEO) has a lot to answer for. Throughout this whole saga he has remain awfully quite until the Mascherano deal was done. That, he says demonstrates the commitment of the owners. He forgot to mention that Sissoko sale of £11m help pay for Mascherano, with the shortfall most probably financed through loans, just like everything else up to now.
I don't blame David Moores; he's just a scally-wag being badly advised by someone with a conflict of interest (it was rumoured that DIC would not have Parry as CEO).
Rick Parry should go. For the West Ham FA Cup Final 2006, he said he did not understand why the Millennium Stadium would not issue duplicates following a batch of tickets going walkies from a Post Office van. He should know; I wrote to him 3 times the year earlier to ask why there was someone in my seat for the Carling Cup Final against Chelsea.Response to my letters: 1st: reply in due course; 2nd:said secretary was supposed to reply; 3rd: no reply. No apology. Disgusting
Vincent Lock, London,
why cannot the american just go away and let D I C run the club Hicks is not wanted by the REDS
robert bourne, MAIDSTONE, UK