Liverpool confirm takeover talks
Investment may include offer for 'entire share capital of club'
Georgina Turner
Wednesday March 29, 2006
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Liverpool today confirmed they are in discussions with potential investors - talks that, according to a statement, may lead to a buyout of the club.
A consortium headed by Spanish telecommunications multi-millionaire Juan Villalonga became the latest one linked with investment in the club this week, with Villalonga saying he wanted Liverpool to "change from a domestically focused club into a global force".
The Liverpool board, however, confirmed negotiations were under way with "a number of parties".
A club statement read: "The board of Liverpool FC has noted the recent press speculation concerning possible third-party investment into the club and can confirm that it is continuing discussions with a number of parties regarding a potential investment of new funds into the club. Although the structure of any such investment is uncertain, it may include an offer for the entire share capital of the club. Shareholders will be kept updated as appropriate."
Liverpool chief executive Rick Parry later played down the statement, however. "Due to the reports over the weekend, we're obliged to make a statement and write to shareholders," he said. "It's a formality, but there has been no change to the situation."
The news came as Deloitte football analyst Dan Jones advised the club that they must redevelop Anfield or finance a new stadium if they're to keep up with the likes of Manchester United and Newcastle United, who both play in front of far larger crowds.
"Liverpool's turnover was £122m last year when they won the Champions League so they cannot really do much better than that," said Jones.
"Whether they move to a new stadium or redevelop Anfield, it is essential they do something. Every season they are £35m behind Manchester United on matchday takings. One can see with Newcastle the benefits that can be gained by getting your stadium right.
"They have done very well and finished just outside the top 10 in Europe in terms of earnings despite not having a very good time on the pitch."
One of several bids for the club in recent years, tabled by local businessman Steve Morgan, foundered by the end of last year after the true cost of a new stadium was revealed.
The club had already been the subject of interest from Thai prime minister Thaksin Shinawatra, who was hopeful of buying a 30% stake in the club in March 2004. His interested ended in June that year after failing to reach an agreement with chief executive Rick Parry. Shinawatra's means of raising the necessary funds - some £60m - were also brought into question.
By the end of 2005 a bid from a Thai media tycoon had been made and aborted, while reported interest from the US-based family Kraft never came to anything.
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