Barclays Bank to back refinancing of Liverpool Football Club
Quote:
Sun, Apr 11 02:32 PM
London, Apr 11 (PTI) British banking major Barclays will back a 300-million-pound (USD 460 million) refinancing at Liverpool -- one of the most successful clubs in the history of English football -- that would lead to sale of the club, a media report says. The bank this weekend is finalising a deal that will see it replace the club''s current lenders, provide more funds for manager Rafa Benitez to spend on players and appoint British Airways Chairman Martin Broughton as Chairman, the UK newspaper ''Sunday Times'' said.
Liverpool is owned by American duo George Gillett and Tom Hicks, who acquired the club in February 2007 for 219 million pound. The club is currently facing a cash crunch.
It has outstanding loans of 237 million pounds and its lenders-- Royal Bank of Scotland and American bank Wachovia-- have demanded 100 million pound by July. "Barclays, the main sponsor of the Premier League, will replace RBS and Wachovia, and provide the club with additional capital," the Sunday Times said.
Quoting banking sources, the UK paper said Broughton would be given the job of steering through the refinancing, while Barclays Capital has been given the responsibility of finding a new owner. "Broughton is the kind of international business figure who will be able to bring in the standard of bidders Liverpool should attract," it said quoting source said.
The club has been talking to potential investors, including an American private equity fund Rhone Group, for several months. It offered to buy a 40 per cent stake in the club for 116 million pound.
The Americans were reportedly unpopular with club''s supporters and the hostility had increased as it had become clear that there were no money available to strengthen the team. Mukesh Ambani, chairman of Reliance Industries and Subroto Roy, chairman of Sahara Group are reportedly bidding for a 51 per cent stake in Liverpool football club.
In April 2008, business magazine Forbes ranked Liverpool as the fourth most valuable football team in the world, after Manchester United, Real Madrid and Arsenal.
http://in.news.yahoo.com/20/20100411...fc-refina.html
