Forgive brevity.
Broughton’s comments prompt many questions. Let’s look at what he said.
What is the “first round” of bidding ? And what is the significance of July? If someone was interested in buying the club they have had ample opportunity to do so before.
They're holding an auction. Prior to Broughton being brought in, it may well be that interested parties weren't inclined to deal with H&G nor were the circumstances quite the same - cf Rhone bid which was for a controlling interest not full ownership.
If the Club goes into Administration RBS’s prime responsibility is to get its £237m back, equally G&H’s prime concern is to at least cover what they have put in. It is a nonsense to suggest that either would plump for a “better bidder” in terms of their long term plans for the club at the expense of covering their respective outlays.
Broughton and Barcap seem to believe that this is not a likely eventuality. The owners are only "committed to accepting any reasonable offer'" (source: Broughton's interview after Mr.Hodgson was appointed on Lfctv).
IF, the desire is to go for the best, rather than highest, bidder, that suggests that there is no pressure/requirement to sell. That does not appear to be true. So it’s a contradiction.
Not necessarily. The devil will be in the detail of what the 'best' bidder means. Broughton links it to a commitment to build a stadium. The terms and conditions of that commitment may be the key to understanding this. For example, an agreement to finance a new stadium via RBS and Barcap would offer the 'added value' which might be part of the sale or it may well be to commit to building what H&G have planned and so not be able to discount the cost of that against the price being paid. What Broughton is saying is that the club is not being valued as a distressed asset.
A year after Purslow arrived to sell the club/ raise finanace and getting on for three months after Broughton arrived to sell the club we are apparently “Where we expected to be”, but have not had a single offer! A process which he is overseeing and Barcap are running. Well so far I am not impressed.
Purslow found Rhone. Shite effort but it would seem no-one was biting at sharing ownership with H&G. For an auction, which will presumably have a deadline for bids, potential owners would have until that deadline. The question is why Broughton and why Barcap were brought in to oversee and run the process. I doubt they're limiting their search for potential bidders, but I'd lay good money they have been using every contact in the Middle East they've got.
So the owners can’t block the sale of the club. Well if they own it surely they can? If they don’t why have RBS not already sold at a realistic price (£237m+) ?
See quote earlier. They can block if offer is not reasonable (ie a fair market value). Realistic price is not going to be the same as bank debt, which is only £18 million more than price paid in spite of increased revenues.
So there is no base line? What about RBS’s exposure? Is that not a base line? Surely all that does is to encourage any interested part to sit back .......................and offer £1?
There is no reserve. That is not the same as a base line. There is no minimum figure for a bid, or a price at which the club is automatically sold. But the owners are apparantly committed to selling at a fair market value.
On the one hand it is an auction, on the other it is NOT necessarily to the highest bidder?
???And there is no minimum............................. Second Hand Sam the car dealer in Crocky could do a better job than that.
Note again the link Broughton makes between 'best bid' and the stadium. That's the really odd part of the process.
My take on this? I understand that G&H are in the termination of contract phase of their loan agreement with RBS.RBS’s current funding is purely to support a sale. G&H are exploiting the clauses in that phase for all they are worth and at some point, when an offer comes in which covers RBS’s exposure they will say to G&H (If they haven’t taken a better bid before should one have been made) “if you don’t take this, we will take you into Administration and take it ourselves plus fees”.
Seems like it. Looks like the last chance for them to realise maximum profit on the club given current circumstances. If this fails, then they stand to lose their £110 million guarantees plus their £100 million+ inter-company loan as RBS could put us into admin and only have to realise £127 million. But it could also be the last chance for anyone interested in owning Liverpool to buy the club before the club is totally ripped apart by every asset an administrator can lay his hands on being sold off. Big question is what is in the stadium guarantees which are being made part and parcel of the deal. It could well be that in total, Hicks valuation of the deal could be near the mark - price paid for the club + commitment to take out financing for stadium as previously arranged with current lender.
