Liverpool chairman appointed by RBS - 7M sport

Liverpool chairman appointed by RBS



Posted Tuesday, April 13, 2010 by theguardian.com

Liverpool owners asked by Royal Bank of Scotland to relinquish control

Liverpool chairman appointed by RBS
Liverpool could soon be sold after Royal Bank of Scotland conditioned its refinancing package on Tom Hicks and George Gillett relinquishing control of the club.

The Royal Bank of Scotland is to increase its control at Liverpool having insisted on the appointment of an independent chairman, Martin Broughton of British Airways, as part of its latest refinancing offer to the club's co-owners, Tom Hicks and George Gillett.

Hicks and Gillett are expected to confirm within the next 48 hours their intention to sell Liverpool eventually, with an announcement that Barclays Capital has replaced Rothschild and Merrill Lynch as the bank searching for new investors. The appointment of Broughton as the chairman is due to be ratified by the Americans this week, signalling increased influence in the Anfield boardroom by the largely government-owned RBS.

The deal represents a six-month extension to Hicks and Gillett's existing arrangement with the bank and affords the Americans added time to find an investor willing to meet their £500m asking price for the club. It also reduces the threat of a "fire-sale" of key assets such as Fernando Torres and Steven Gerrard this summer should the co-owners fail to repay £100m of their £237m debt before July, as was stipulated in their last refinancing agreement.

The failure of Hicks and Gillett to secure investment is the latest in a catalogue of unfulfilled promises by Liverpool's unpopular co-chairmen, who have had a fractured business relationship and have both been badly affected by the global economic crisis. The proposed appointment of Broughton, therefore, is an attempt to break the state of paralysis over major decisions within the Anfield boardroom and gives Liverpool's lenders greater assurance over the co-owners' efforts to sell. Liverpool last night declined to comment on Broughton being an RBS appointment.

The former chairman of British American Tobacco, the British Horseracing Board and current deputy president of the CBI will work alongside Liverpool's managing director Christian Purslow in the search for new investment. Several parties have expressed interest in Liverpool, who need to reduce their debt before work on the stalled but critical stadium project can commence, but only one, The Rhone Group, has submitted an official offer since Purslow's global hunt for possible investors began last year. The deadline on their proposed offer of £110m for a 40% stake in Liverpool passed last Monday.

Hicks and Gillett are believed to be close to finalising the refinancing extension with the RBS, although what funds will then be left available to manager Rafael Benítez for spending on new players this summer is uncertain. Reports of an alternative, three-year refinancing deal with Barclays Bank have been denied by officials at Anfield and sources close to the Americans.

Liverpool look increasingly likely to miss out on the revenue streams from the Champions League next season after falling six points behind fourth-placed Manchester City following Sunday's goalless home draw against Fulham. Their vice-captain, Jamie Carragher, is adamant, however, that Liverpool can withstand the impact of a season outside the European elite, a feeling shared by Anfield officials.

"People forget that there have been times when we haven't played in the Champions League," Carragher said. "We missed out under [Gérard] Houllier at Bradford on the last day [in 1999-2000], and we had to win the trophy to get into the Champions League in the current manager's first season.

"It's nothing new if we don't get there. People are saying that if we miss out, then that'll be it for us, as though we'd never get there again. That's just nonsense. If we can't get there we'll battle on next year. We can't be as bad as we have been this season, so I'm sure we will be getting back in the Champions League next season. The Champions League is a big thing, you want to play in it and the revenue it generates is important for the club. But the way people are talking, you'd think if we don't get in this season, we'll never get in it again. Who knows what the future holds? But we're a massive club and I'm sure we'll get back into the Champions League."

Liverpool's concerns over the fitness of Torres have increased after scans on the extent of the striker's latest knee injury proved inconclusive. The Spain international underwent an assessment in Barcelona yesterday and is to remain in Spain for further treatment. He received treatment and will continue to do so over the next few days, with the injury being reassessed later this week," the club confirmed.



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