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Liverpool FC for Sale

The disposition of Tom Hicks' sports empire rolls on, as the debt problems of the former privater equity king continues on unabated.  Following the sale of the Dallas Stars and the Texas Rangers, Hicks and 50% partner George Gillett are being forced into a sale of the Premier League club Liverpool as a condition imposed by Royal Bank of Scotland to extend the maturity debt of loans owed to it from the club and the two owners relating to the owners purchase of the club.

Gillett, who has financial issues of his own, which forced a sale of the Montreal Canadiens, and Hicks are barely on speaking terms as a result of their dispute over how to manage Liverpool, the direction the club should take, the stadium deal and financing package it should pursue and most importantly the capital calls needed to operate the club and meet its current obligations. 

The sale of the club should resolve all of those issues, but the market has cooled since their original purchase and whether the pair will realize any return on their invested capital is questionable.  A sale should resolve the club's supporters issues with the owners as well.

Full post as published by Sports Biz on April 12, 2010 (boomark / email).