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Reports: Tom Hicks’ Liverpool Debt To Be Refinanced

Posted on June 23rd, 2009 2:00pm by Evan Grant
Filed under Breaking News, Front Office, Other sports

UPDATED, 3:02 pm CDT with quotes from Tom Hicks, confirming Royal Bank of Scotland’s commitment.

The BBC is reporting that Royal Bank of Scotland will refinance a debt of £350 million that was due to be paid in July. There are, however, still negotiations ongoing with Wachovia, which also is due part of the loan.

What I found most interesting from the BBC story is this:

“The RBS revelation comes days after Liverpool co-owner George Gillett agreed to sell one of his major assets in a deal which would ease financial pressures at the Premier League club.

He is selling his 80% stake in the NHL’s Montreal Canadiens ice hockey team, in a deal reported to be worth at least $550m (£332.9m).

His fellow Liverpool owner, Mr Hicks, has also been looking to sell off elements of his own sporting empire – which includes Major League Baseball’s Texas Rangers and the NHL’s Dallas Stars.

The sales will help provide financial guarantees to RBS and Wachovia that Mr Gillett and Mr Hicks have funds available for the operation of the football business.”

The last paragraph basically says that Hicks and Gillett are selling off their North American holdings to continue to operate the English Premiership team. Hicks, however, has maintained from the very start that his Liverpool dealings have no impact on his decisions with the Rangers/Stars and vice versa.

From email, Hicks sends this response: “We have been working closely with RBS for several months on both an extension and a permanent financing, and have their commitment to do so. Our new Managing Director, Christian Purslow, is leading the negotiations for us, and we anticipate finalizing everything during the next few weeks. Liverpool had a record year financially and came within a few points of winning the English Premier League for the first time in 20 years.”

9 Comments to “Reports: Tom Hicks’ Liverpool Debt To Be Refinanced”

Brian @ June 23rd, 2009 at 3:48 pm

Why are Hicks and Gillette so focused on the English football? Is it because they bought in there last and thus aren’t able to turn a profit yet? And I have nothing against profits, I’m just curious as to what would motivate them, esp Hicks to focus os far away geographically as opposed to focusing on his two hometown franchises.
KJ @ June 23rd, 2009 at 4:02 pm

Brian- Liverpool is building a new stadium/pitch.
stephen @ June 23rd, 2009 at 4:35 pm

Because unlike the Stars and the Rangers, Liverpool FC has a global brand. It has the potential to be a windfall for Hicks if he can maintain his position with the club. While we hate to admit it, soccer is the world’s sport and is followed by billions compared to US sports that are followed regionally.
82DaysOfHicksDefault @ June 23rd, 2009 at 5:13 pm

Anything to get him out of the Rangers works for me………
Mark @ June 23rd, 2009 at 5:17 pm

I don’t think we hate to admit it. We just don’t care. Cricket has a massive following around the globe, too. So what?

The more Liverpool draws on Hicks’ assets and hastens him to divest locally, the happier we’ll all be.
stephen @ June 23rd, 2009 at 6:05 pm

Cricket…I love it, but besides India, Pakistan and the West Indies it is really only played in former British colonies. I know most Americans don’t care about soccer, it’s because it is played poorly over here. I want Hick’s out of Liverpool because he is a cheap bastard and his holding the club back, sound familiar.
Evan Grant @ June 23rd, 2009 at 7:25 pm

@Brian: I don’t think Hicks or Gillett would ever say this, but from a business sense, an English Premiership team like Liverpool is more valuable than just about any iconic franchise in any U.S. sport. From a purely business sense, Liverpool is a wiser investment.
stephen @ June 23rd, 2009 at 7:35 pm

Evan you are wiser than years indicate.
82DaysOfHicksDefault @ June 23rd, 2009 at 8:24 pm

@evan then give him liverpool and be done with him……we need an owner who sees the Rangers as part of the fabric of the metroplex…….someone like a Bass who believes in the community….

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