Author Topic: Hicks - Texas Rangers Sold...  (Read 180033 times)

Offline ali

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Re: Hicks $570million richer
« Reply #40 on: January 24, 2010, 12:58:33 pm »
Hicks sells Rangers, LFC still in limbo
Posted on January 24th, 2010 by Jim Boardman

Liverpool co-owner Tom Hicks has agreed the sale of Texas Rangers baseball franchise to a consortium headed by Chuck Greenberg and current Rangers president Nolan Ryan. Although Hicks will still retain a stake in the franchise he will no longer be on its board.

Hicks Sports Group announced on Saturday night that it had “reached a definitive agreement” to sell the MLB franchise to the Rangers Baseball Express, the Greenberg-Ryan investment group. Ryan ended his playing career at Texas Rangers and was described as a “legendary pitcher” in the announcement.

It has taken some time for the process to reach this stage. Hicks first said he was willing to sell a minority stake in the franchise in March last year, two months later admitting that he would now consider selling a majority stake. There is still some way to go before the sale goes through; Major League Baseball have to approve the deal as do some of the lenders that Hicks Sports Group have used. The statement also says that there is some “completion of financing” to do.

There was a 30-day period of exclusivity for the consortium to come to a deal, but having passed that deadline the negotiations continued and the deal went through. Hicks said: “Together, we have worked exhaustively since last month to attain this agreement. It’s a complex business deal that positions the franchise positively for the future.”

Another of the Hicks family’s investment interests, Ballpark Real Estate, will hand over 153 of the 195 acres of land it controls around the Rangers’ Ballpark stadium and the Dallas Cowboy’s stadium. This is being exchanged for “cash, notes, and an ownership position in the team”.

Greenberg will become Managing Partner and CEO of the new Rangers setup, With Ryan continuing as president. Other major investors in the new setup include billionaire Ray Davis (not of The Kinks) and the Simpson family (of Fort Worth not Springfield). Davis and Bob Simpson will become co-chairmen. Simpson was reportedly made $300m dollars richer last month when his XTO Energy merged with ExxonMobil.

For Hicks there’s a continuing role in the new organisation, but in what is said to be a more ceremonial or honorary role as Chairman Emeritus.

The amount of money involved has not been disclosed but speculation suggests the figure is somewhere between $500m and $570m (£310m and £350m) and enough to cover the Hicks Sports Group’s debts of around $525m. Hicks bought the Rangers for $250m in 1998.

Greenberg praised Hicks in the statement “Nolan and I greatly appreciate Tom Hicks’ willingness to work beyond the deadline to complete the deal and his support for passing the torch from the Hicks family to our group. His actions speak eloquently to his commitment to serve the best interests of Rangers fans and the community.”

Greenberg didn’t use the word ‘custodians’ to refer to the change of ownership but no doubt his words will be closely analysed by Rangers followers: “We are fortunate to be assuming the stewardship of a franchise poised for greatness. The tremendous foundation of talent that has been assembled on both the major and minor league levels, combined with our passionate commitment to achieve excellence in every facet of the organization’s operation, and the pent-up thirst for success we observe from our fans every day, creates the opportunity for the Rangers to become one of the great franchises in baseball.”

Meanwhile Hicks has also sold one of his holiday homes, a three-acre estate in the Aspen area of Colorado. The sale went through for $18.5m, below the original £20m asking price but still a massive return on the $1.03m he paid for it in 1995.

Described as consisting of “a main house and a guest house totalling 11,000 square feet” the properties were sold furnished. Hicks was reported to have said the sale was due to his family taking their vacations elsewhere in recent years. The property is about 100 miles away from the base of his fellow Reds co-owner George Gillett Jnr in Vail, Colorado. There was no love lost between the pair during a prolonged and public battle two years ago over ownership of Liverpool.

Hicks is still the owner of the Dallas Stars NHL side, but Gillett Jnr sold his stake in the Montreal Canadiens late last year. Meanwhile Liverpool’s financial troubles continue, and continue to be shrouded in secrecy.

The transfer budget has seemingly been withdrawn, Rafa Benítez having made a profit on transfers since the turn of last year and the new stadium, despite vague promises, is still to get underway.

A credible offer is believed to have been put to the club’s owners at the end of last season that would solve the problems with funding for the new stadium. This is believed to have been turned down flat by current LFC Managing Director Christian Purslow, with the impression given that he would be able to solve those problems himself.

Six months on – and with the club’s struggles on the field emphasising the financial difficulties they are under – there is still no sign of that funding and the club remains in limbo. Fans are still in the dark about what is really going on at the club behind the scenes. Is the club’s transfer spending being halted by the owners or by Purslow? Why not be honest about it? Where has the money gone, if it’s not gone on servicing the debt?

As both owners seem to be taking steps towards getting everything in order with their US interests, the man hired to sort out their Liverpool interest seems to be making very little progress. Worst of all, after billing himself as a lifelong Red, he doesn’t seem to be telling the supporters the open and honest truth about what is going on at the club.

A year’s worth of pay increases for a few players doesn’t explain why the annual transfer funding has dropped so dramatically. A simple explanation would have perhaps lessened the pressure on the manager. It would have been far better than shadowing him at press conferences, a move that made it look like there was a fear he might reveal something about what was really happening at the club.

Had that proposal for stadium funding been taken up in the close season, how much of a boost would it have been to the club and its supporters to finally see some progress on construction of the one thing that justified the club being sold in the first place?

Liverpool FC was sold so that it could afford a new stadium, a stadium that would bring in extra funds for new signings and help in the battle to get back on top of the league after all these years of missing out. Instead we sit here knowing that we’re now a selling club, hoping for the best with free transfers and wondering how long it will be before one of the big names is sold to help fund some replacements.

Clearly the club’s owners have been busy sorting out those North American interests, trying to take them out of limbo – now it’s time they got back to work on their interest here in England.

http://www.anfieldroad.com/news/201001243469/hicks-sells-rangers-lfc-still-in-limbo.html/
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Re: Hicks $570million richer
« Reply #41 on: January 24, 2010, 01:18:42 pm »
I have a question, if Hicks decides to invest this money in us, take us completely out of debt, finance our new stadium and give Rafa a fair amount to spend would people mind if he stayed? Or just get him out?

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Re: Hicks $570million richer
« Reply #42 on: January 24, 2010, 01:27:24 pm »
A credible offer is believed to have been put to the club’s owners at the end of last season that would solve the problems with funding for the new stadium. This is believed to have been turned down flat by current LFC Managing Director Christian Purslow, with the impression given that he would be able to solve those problems himself.

Six months on – and with the club’s struggles on the field emphasising the financial difficulties they are under – there is still no sign of that funding and the club remains in limbo. Fans are still in the dark about what is really going on at the club behind the scenes. Is the club’s transfer spending being halted by the owners or by Purslow? Why not be honest about it? Where has the money gone, if it’s not gone on servicing the debt?

As both owners seem to be taking steps towards getting everything in order with their US interests, the man hired to sort out their Liverpool interest seems to be making very little progress. Worst of all, after billing himself as a lifelong Red, he doesn’t seem to be telling the supporters the open and honest truth about what is going on at the club.


What's all that about a 'credible offer' re stadium funding being knocked back by Purslow?

Offline rola

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Re: Hicks $570million richer
« Reply #43 on: January 24, 2010, 01:51:44 pm »
I don't think we've got a hope in hell of seeing a single cent of that cash reinvested in LFC.  It's not part of Hicks' business plan for this project. This is a leveraged buy out and it will be funded with other peoples money.  Whatever Hicks makes from that deal will go into into his own pockets or be used to shore up his overall financial status - the most it will achieve in relation to LFC will be to make him a more solid prospect fore the banks to lend to.  The cash may underwrite more loans, but it won't be used to build a stadium or pay any interest on the loans - the cash will be borrowed, the income the club generates will be used to pay the interest and at some point in the future that fat greedy bastard will sell for his fat greedy profit.

He's an investor, not a benefactor.  That means he's looking to take out more than he puts in.  Wake up guys. 
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Offline west_london_red

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Re: Hicks $570million richer
« Reply #44 on: January 24, 2010, 01:54:12 pm »
I dont see how Hicks selling the Rangers increases his ability to borrow by much if at all. He defaulted on his loans yet the creditors couldnt take any action against him becuase of the MLB's rules with regards to what can be done during the season. That suggests that a sizable chunk of the loan was secured against the Rangers, in which case he he wont be able to borrow any more then he could previously as hes also losing the asset against which the loans were secured.

And the article posted by Ali brings up a very valid point. Would Rafa be under so much preassure if Purslow was upfront with everyone and admitted Rafa has had no money to spend.
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Offline Mutton Geoff

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Re: Hicks $570million richer
« Reply #45 on: January 24, 2010, 02:09:56 pm »
He will use it to prop up his Dallas Stars NHL franchise!
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Offline 4pool

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Re: Hicks $570million richer
« Reply #46 on: January 24, 2010, 02:10:26 pm »
I am surprised that those who have some sense of finance in this thread have missed one obvious point.

Hicks Sports Group

HSG combines the Texas Rangers and Dallas Stars.

It includes both clubs debts.

That is why HSG needed to divest of itself. So that the Rangers and Stars could go back to being seperate entities.

That is also why this is a complicated deal with multiple banks because of the contract duplicity of Rangers/Stars.


So HSG maybe 500-600 mil in debt but one needs to subtract out what remains of the Stars debts. When you do that it should become clearer Hicks has made a few $$$ on the sale.
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Offline beardsley4ever

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Re: Hicks $570million richer
« Reply #47 on: January 24, 2010, 02:18:50 pm »
4pool has hit the nail on the head. The HSG debt of $525m was against the Rangers AND the Stars, so this sale for $570m puts Hicks in a much MUCH better position. HSG now owns the Stars with no debt at all. Whether this will end up benefiting us or not depends on whether Hicks uses his new position of capital strength to build us a stadium or not (will still be borrowed money but at least he could borrow it now).

But hey, let's not let the facts get in the way of opinions here. I'm sure we'll see the net $45m number in one of the rags tomorrow. ::)

Offline rafathegaffa83

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Re: Hicks $570million richer
« Reply #48 on: January 24, 2010, 02:29:07 pm »
Anybody the sitaution with Hicks Dallas Stars NHL side .....

They aren't in near as much trouble as the Rangers were. There has been some debate within the Canadian hockey press about whether the Stars will be given the go-ahead to add any new major contracts before the trading deadline to bolster their team for a playoff run. The theory is they probably won't, even though they have the sixth highest amount of cap space to work with. Currently the Stars are four points (two points for a win) out of a guaranteed playoff spot. There are thirty one games left in the regular season, but they have been in a slump recently. The fact they don't have too many players going to the Olympics may work in their favour.

The biggest deal they'll probably make is offloading star (no pun intended) goaltender Marty Turco, whose contract expires at the end of the season. The Stars have no intention to offer him an extension, but I think it has more to do with sporting rather than financial reasons; as Turco has been on a rapid decline the past few seasons.

Interestingly, the Wall Street Journal has said Hicks has sold a home he owns in the Aspen area for $18.5m
« Last Edit: January 24, 2010, 02:31:39 pm by rafathegaffa83 »

Offline rocco

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Re: Hicks $570million richer
« Reply #49 on: January 24, 2010, 02:35:42 pm »
I am surprised that those who have some sense of finance in this thread have missed one obvious point.

Hicks Sports Group

HSG combines the Texas Rangers and Dallas Stars.

It includes both clubs debts.

That is why HSG needed to divest of itself. So that the Rangers and Stars could go back to being seperate entities.

That is also why this is a complicated deal with multiple banks because of the contract duplicity of Rangers/Stars.


So HSG maybe 500-600 mil in debt but one needs to subtract out what remains of the Stars debts. When you do that it should become clearer Hicks has made a few $$$ on the sale.
Have you any idea over all what financial position Hicks is in .....

Offline rocco

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Re: Hicks $570million richer
« Reply #50 on: January 24, 2010, 02:38:02 pm »
They aren't in near as much trouble as the Rangers were. There has been some debate within the Canadian hockey press about whether the Stars will be given the go-ahead to add any new major contracts before the trading deadline to bolster their team for a playoff run. The theory is they probably won't, even though they have the sixth highest amount of cap space to work with. Currently the Stars are four points (two points for a win) out of a guaranteed playoff spot. There are thirty one games left in the regular season, but they have been in a slump recently. The fact they don't have too many players going to the Olympics may work in their favour.

The biggest deal they'll probably make is offloading star (no pun intended) goaltender Marty Turco, whose contract expires at the end of the season. The Stars have no intention to offer him an extension, but I think it has more to do with sporting rather than financial reasons; as Turco has been on a rapid decline the past few seasons.

Interestingly, the Wall Street Journal has said Hicks has sold a home he owns in the Aspen area for $18.5m
I meant , does Hicks have them in debt or debt free .... so them much are they worth if Hicks decided to sale ? trying to figure what Hicks and Gilletts financial position are ?

Offline Zeb

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Re: Hicks $570million richer
« Reply #51 on: January 24, 2010, 02:58:09 pm »
I meant , does Hicks have them in debt or debt free .... so them much are they worth if Hicks decided to sale ? trying to figure what Hicks and Gilletts financial position are ?

According to Forbes, in 2007, prior to the Dallas Stars debts all being rolled together with the Rangers in HSG, the Stars were in debt to a tune of $200 million. In 2009, Forbes valued the Stars at $243 million.

The HSG debts (according to Bloomberg) were:

Quote
a $350 million term loan with an interest rate of 2.5 percentage points above the London interbank offered rate, or Libor; a $100 million so-called second-lien loan, with an interest rate of 5.5 percentage points plus Libor; and a $75 million revolving bank loan that pays 2 percentage points over Libor.
sauce The two loans were from J.P. Morgan Chase & Co. and Barclays Plc and due to mature in 2010 and 2011. I wouldn't have thought that the loans will be renegotiated.
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Offline No666

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Re: Hicks $570million richer
« Reply #52 on: January 24, 2010, 03:09:57 pm »
In that case the figures are: approx 600m minus 200m = 400m to pay back = 145m$ to do something with to the benefit of LFC. Right Tom, we're waiting with bated breath.

Edit: we'll be waiting in April with bated breath.
Seeing as the deal doesn't come to fruition until then, there is likely (?) to be another SoS meeting with Purslow in between, so maybe SoS can ask him outright whether Hicks is going to put some of this windfall into LFC and if not, why not?
« Last Edit: January 24, 2010, 03:14:33 pm by No666 »

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Re: Hicks $570million richer
« Reply #53 on: January 24, 2010, 03:13:22 pm »
In that case the figures are: approx 600m minus 200m = 400m to pay back = 145m$ to do something with to the benefit of LFC. Right Tom, we're waiting with bated breath.

Don't hold your breath.

Offline tommy LFC

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Re: Hicks $570million richer
« Reply #54 on: January 24, 2010, 04:27:40 pm »


Yeeeeee Hawwwwww
Let us never forget Rafael Benitez and what he did for us. A fighter full of guts and passion. A gentleman full of class and dignity. A football manager full of intelligence and pure genius. A Legend.
Adios Rafa, buena suerte.

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Offline Schmidt

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Re: Hicks $570million richer
« Reply #55 on: January 24, 2010, 04:37:50 pm »
How would any potential investment work in the partnership? Even if he wanted to turn around and put £100m into the club, wouldn't Gillett need to add equal investment?

I don't see it happening in any case, they're here to make money, not win prizes.

Offline beardsley4ever

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Re: Hicks $570million richer
« Reply #56 on: January 24, 2010, 05:57:56 pm »
In that case the figures are: approx 600m minus 200m = 400m to pay back = 145m$ to do something with to the benefit of LFC. Right Tom, we're waiting with bated breath.

Edit: we'll be waiting in April with bated breath.
Seeing as the deal doesn't come to fruition until then, there is likely (?) to be another SoS meeting with Purslow in between, so maybe SoS can ask him outright whether Hicks is going to put some of this windfall into LFC and if not, why not?


Not exactly. The figures for HSG are:

$570m (approx purchase price) - $525m (approx debt) + $250m (approx value of Stars) = c. $300m (net equity value of HSG)

something like that. It's not liquid though, but you could borrow against it, which is exactly what a leveraged investor like Hicks will try to do.

Offline ali

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Re: Hicks $570million richer
« Reply #57 on: January 24, 2010, 06:04:28 pm »
What's all that about a 'credible offer' re stadium funding being knocked back by Purslow?

As I understand it, from information elsewhere, they had an offer from whom I don't know for the stadium to be built and it was refused.
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Offline No666

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Re: Hicks $570million richer
« Reply #58 on: January 24, 2010, 06:07:02 pm »
I'm going on estimated debt of 600m (original debt plus rolled up interest, penalties, etc) - minus 200m debt maintained on the Stars, which he is continuing to own, (their book price is irrelevant if you assume he is not paying off all the debt HSG has, but merely that relevant to the Rangers).
Alternatively he has 600m approx of HSG debt and pays all/most of it off with the proceeds of the sale, plus selling his pad in Aspen. He then has an asset worth $243m which he can offer as security.

Offline red44

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Re: Hicks $570million richer
« Reply #59 on: January 24, 2010, 06:11:21 pm »
How does the saying go?

Fool me once, shame on you

Fool me twice, shame on me.....

If any of you are encouraged by this news, I'm afraid you are in for a big let down.

This will change nothing for us.  These twats don't have any real money, they're just
rich 'on paper'.  We need real investment, with real funds - not debt leveraged against us and our reputation.

These wankers need to go, and take all of their bullshit with them.
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Offline ali

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Re: Hicks $570million richer
« Reply #60 on: January 24, 2010, 06:27:35 pm »

Rangers sale and effect on the Stars
   10:19 AM Sun, Jan 24, 2010
Mike Heika/Reporter   

The Hicks Sports Group announced last night that the Texas Rangers would be sold to the Chuck Greenberg Group, and many of you have asked how that might affect the Stars ability to spend more money.

I don't have an answer for you now, but I hope to by the end of the day.

The sale is reported to be for ``considerably more than $500 million,'' and it may not be completed until April, so my guess is any kind of help for the Stars would come after that.


You also have to factor in that Hicks Sports Group was reported to have defaulted on $525 million worth of loans in March of 2009, so are there interests and penalties that have to be paid back? Is there money the Rangers borrowed from Major League Baseball that has to be paid back? What will it take to satisfy these lenders and is that part of the sale or part of the debt the new Rangers owners will take on?

That said, my guess is the Stars were a large part of the $525 million in loans, and Hicks still owns them. Can he ``refinance'' the team, so to speak, since he definitely has some equity here? Is there a large part of these loans that don't have to be paid back immediately because they are tied to a hockey team that Forbes values at $246 million (eighth highest in the NHL).

It's a lot to digest and unravel, and hopefully we can do that.

I do have a theory on spending in baseball and hockey. Tom Hicks got frustrated trying to chase the Yankees, Red Sox and Angels, because the Rangers would have had to increase their payroll by $50 million or more and still had little guarantee of being better than the other teams.

In hockey, the difference between the lowest spending teams and the highest is only about $12 million. In fact, the Stars under the current salary cap, could only add about $8 million more in payroll before they would be getting seriously close to the cap and would have to consider some juggling for long-term injury.

Now, that $8 million could add some serious help, and allow Joe Nieuwendyk the ability to make some deals. Do you think the Stars could have ever swung the Brad Richards deal without the ability to take on Richards' $7.8 million contract? The Lightning was trying to dump salary, and the Stars were in position to take advantage of that.

As it stands now, they could not make that same deal at the trade deadline.

So my point is that if Tom Hicks has the ability to spend money or OK a big trade and he has the money to do so, he would do it in hockey. It makes more financial sense. A couple of smart moves really could get the Stars into contention with the top teams in the West, and the ability to make that money back would be realistic.

It certainly wouldn't be guaranteed, but I truly believe a smart owner would believe it would be worth the investment to have the chance to produce more wins, more excitement and more revenue-producing playoff games.

That said, I don't believe the sale of the Rangers will open any windows immediately, but I'll ask around.

Comments
Posted by Anonymous @ 11:41 AM Sun, Jan 24, 2010

FYI..

When banks face default situations they are usually more in interested in trying to recover the principal than collecting interest and penalties and in many situations they are often willing to settle for a dollar amount less than the principal. I would predict that Hicks returns the principal, nothing more nothing less.

http://starsblog.dallasnews.com/archives/2010/01/rangers-sale-and-effect-on-the-stars.html

bit surprised at the anonymous post content, surely that would put any lender/s off lending in the future, particularly as this is the second time he's defaulted on payments, the other being when HSG was first know as the South West Sports Group.
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Re: Hicks $570million richer
« Reply #61 on: January 24, 2010, 06:31:40 pm »
As I understand it, from information elsewhere, they had an offer from whom I don't know for the stadium to be built and it was refused.
Ali, was this the Al-Sager group last year?
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Offline rocco

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Re: Hicks $570million richer
« Reply #62 on: January 24, 2010, 06:52:44 pm »

A credible offer is believed to have been put to the club’s owners at the end of last season that would solve the problems with funding for the new stadium. This is believed to have been turned down flat by current LFC Managing Director Christian Purslow, with the impression given that he would be able to solve those problems himself.

http://www.anfieldroad.com/news/201001243469/hicks-sells-rangers-lfc-still-in-limbo.html/
Anybody know who and what the offer was ?
http://www.bloomberg.com/apps/news?pid=20601102&sid=a1v9o16gUrxU&refer=uk 
« Last Edit: January 24, 2010, 07:02:15 pm by rocco »

Offline ali

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Re: Hicks $570million richer
« Reply #63 on: January 24, 2010, 06:56:19 pm »
Ali, was this the Al-Sager group last year?
http://www.bloomberg.com/apps/news?pid=20601102&sid=a1v9o16gUrxU&refer=uk

Forgotten about that Harry, I honestly don't know, but a few posters on TLW have mentioned it for a few months now about the offer being there for the stadium last summer.
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Re: Hicks $570million richer
« Reply #64 on: January 24, 2010, 07:14:45 pm »
Im sure the Kuwaiti firm had a construction arm that built airports etc, and they were certainly being courted by the club. It would make sense that it was them.
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Offline Passmaster Molby

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Re: Hicks $570million richer
« Reply #65 on: January 24, 2010, 08:10:39 pm »
So its possible that Hicks, after selling the Rangers and paying off the debts on HSG, is now sat with no debt on his remaining franchise the Dallas Stars?

If thats the case has he now got a $250mil asset in the Stars that he can use as guarantees for future borrowing? Could he use this to negotiate a loan for our new ground?

And what the fuck has Purslow got planned after supposedly turning down an offer for ground funding?

Offline 4pool

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Re: Hicks $570million richer
« Reply #66 on: January 24, 2010, 08:20:11 pm »
Have you any idea over all what financial position Hicks is in .....

Nope.

One can only speculate.

Does he have the Stars with no debt? Dunno.

Would he load the debt on the Stars instead of the Rangers so as to maximize the profits to himself? Dunno.

It will take a few months, maybe a year when the financials come out, to see what all went down. Until then I would suspect there will be widely varying reports.
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Offline 4pool

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Re: Hicks $570million richer
« Reply #67 on: January 24, 2010, 08:22:15 pm »
Anybody know who and what the offer was ?
http://www.bloomberg.com/apps/news?pid=20601102&sid=a1v9o16gUrxU&refer=uk 


Maybe the reason to turn down an offer would be there is or will be something much better in the works. That might explain Purslows confidence of things happening in the near future.
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Re: Hicks $570million richer
« Reply #68 on: January 24, 2010, 08:24:08 pm »

And what the fuck has Purslow got planned after supposedly turning down an offer for ground funding?

Exactly.  Assuming of course the content of Ali's quote is true.  And what problems with funding was Purslow confident of overcoming without outside help?

Strange.

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Re: Hicks $570million richer
« Reply #69 on: January 24, 2010, 08:25:10 pm »
I have a question, if Hicks decides to invest this money in us, take us completely out of debt, finance our new stadium and give Rafa a fair amount to spend would people mind if he stayed? Or just get him out?

Fair question but in my opinion just get the fucker out of our club. Eventually he will run it down to the ground and rape the assets and fuck off leaving us with the debts again. The trust has been broken so he must go.

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Re: Hicks $570million richer
« Reply #70 on: January 24, 2010, 11:52:09 pm »
From The Times January 25, 2010

Tim Hicks unlikely to plough any of Texas Rangers money into Liverpool

Self-sufficient: a new contract for Torres, the striker, was funded from club income, not by the American owners
Tony Barrett

Tom Hicks Jr, the Liverpool co-owner, is close to completing the sale of the Texas Rangers baseball team for a fee in excess of $500 million (about £310 million), but none of the proceeds are expected to be ploughed into the Barclays Premier League club.

A statement released on behalf of the Hicks Sports Group (HSG) at the weekend revealed that an agreement has been reached with a consortium headed by Nolan Ryan, the Rangers president and former pitcher, and Chuck Greenberg, a Pittsburgh attorney. The deal will go through subject to the ratification of Major League Baseball and the 40 financial institutions that hold about $525 million of debt on HSG.

“Together, we have worked exhaustively since last month to attain this agreement,” Hicks said. “It’s a complex business deal that positions the franchise positively for the future.”

“Nolan and I greatly appreciate Tom Hicks’s willingness to work beyond the deadline to complete the deal and his support for passing the torch from the Hicks family to our group,” Greenberg said. “His actions speak eloquently to his commitment to serve the best interests of Rangers fans and the community.”

The deal, which is expected to be completed by April, is unlikely to have any impact on Hicks’s position at Liverpool. The club — led by Christian Purslow, the managing director — are continuing with their quest for new investment as they endeavour to reduce the £237 million of debt built by Hicks and George Gillett, his co-owner, since their takeover in 2007.

Hicks’s debts in the United States are such that his creditors will have first call on the revenue produced from the proposed sale of the Rangers, making the need for investment in Liverpool as urgent as ever.

Purslow revealed this month that work on the new stadium will begin if and when investment is secured. He also admitted that he is working towards “diluting” the shareholding of Hicks and Gillett, who bought Liverpool with money borrowed from the Royal Bank of Scotland and who have increased the club’s exposure to debt rather than their own financial commitment.

Late last year Gillett was also involved in a substantial sale when he relinquished ownership of the Montreal Canadiens ice hockey team for a reported C$550 million (about £323 million), but has not invested that money in Liverpool.

In light of their failure to plough in money — the most recent round of contract extensions for some of the club’s biggest stars, including Steven Gerrard and Fernando Torres, was funded from the club’s earnings, not contributions from the owners — the duo’s popularity levels are at an all-time low with supporters’ groups.

http://www.timesonline.co.uk/tol/sport/football/premier_league/liverpool/article7000936.ece
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Re: Hicks $570million richer
« Reply #71 on: January 25, 2010, 12:56:03 am »
Exactly.  Assuming of course the content of Ali's quote is true.  And what problems with funding was Purslow confident of overcoming without outside help?

Strange.

We have no idea what the terms of the funding offer were though. They might have been based on anything from the investors owning the stadium and the club rents it from them (giving the investors a lot of power over the club), very high interest rates etc.

While we need the stadium built, it shouldnt be at any costs if the short term boost of building it is outweighted by any longer term pain.

We're half way through Purslow's 6 month time frame for securing investment now, so lets see where we are in April. I suspect we'll be exactly where we are now, but this shit has dragged on now for so long another 3 months wont make any difference.
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Re: Hicks $570million richer
« Reply #72 on: January 25, 2010, 01:30:31 am »
The longer that this scenario drags on, coupled with the realisation of serious mounting debt with Prem Clubs, then any potential investor will seriously have to face the facts - not only is money 'invested' at greater risk, but they'll be in bed with G&H.

Return on a new stadium doesn't materialise until it is up and running - not from the date of announcements of investment or commencement of work. (My assumption).

Should naming rights be approved - at what stage would the club receive income? - Surely again, not until the new stadium is up and running?

G&H are increasingly seen as 'the problem' - not 'the solution.'

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Re: Hicks $570million richer
« Reply #73 on: January 25, 2010, 01:54:16 am »
maybe this summer will be the 'big one'?

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Re: Hicks $570million richer
« Reply #74 on: January 25, 2010, 02:56:15 am »
Would be nice if the banks could force the two of them to pay off the debt with their new-found money, considering they didn't use any of their money to buy the club in the first place.  About time they actually put up some money...
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Re: Hicks $570million richer
« Reply #75 on: January 25, 2010, 03:38:14 am »
From The Times January 25, 2010

Tim Hicks unlikely to plough any of Texas Rangers money into Liverpool

Self-sufficient: a new contract for Torres, the striker, was funded from club income, not by the American owners
Tony Barrett

Tom Hicks Jr, the Liverpool co-owner, is close to completing the sale of the Texas Rangers baseball team for a fee in excess of $500 million (about £310 million), but none of the proceeds are expected to be ploughed into the Barclays Premier League club.

A statement released on behalf of the Hicks Sports Group (HSG) at the weekend revealed that an agreement has been reached with a consortium headed by Nolan Ryan, the Rangers president and former pitcher, and Chuck Greenberg, a Pittsburgh attorney. The deal will go through subject to the ratification of Major League Baseball and the 40 financial institutions that hold about $525 million of debt on HSG.

“Together, we have worked exhaustively since last month to attain this agreement,” Hicks said. “It’s a complex business deal that positions the franchise positively for the future.”

“Nolan and I greatly appreciate Tom Hicks’s willingness to work beyond the deadline to complete the deal and his support for passing the torch from the Hicks family to our group,” Greenberg said. “His actions speak eloquently to his commitment to serve the best interests of Rangers fans and the community.”

The deal, which is expected to be completed by April, is unlikely to have any impact on Hicks’s position at Liverpool. The club — led by Christian Purslow, the managing director — are continuing with their quest for new investment as they endeavour to reduce the £237 million of debt built by Hicks and George Gillett, his co-owner, since their takeover in 2007.

Hicks’s debts in the United States are such that his creditors will have first call on the revenue produced from the proposed sale of the Rangers, making the need for investment in Liverpool as urgent as ever.

Purslow revealed this month that work on the new stadium will begin if and when investment is secured. He also admitted that he is working towards “diluting” the shareholding of Hicks and Gillett, who bought Liverpool with money borrowed from the Royal Bank of Scotland and who have increased the club’s exposure to debt rather than their own financial commitment.

Late last year Gillett was also involved in a substantial sale when he relinquished ownership of the Montreal Canadiens ice hockey team for a reported C$550 million (about £323 million), but has not invested that money in Liverpool.

In light of their failure to plough in money — the most recent round of contract extensions for some of the club’s biggest stars, including Steven Gerrard and Fernando Torres, was funded from the club’s earnings, not contributions from the owners — the duo’s popularity levels are at an all-time low with supporters’ groups.

http://www.timesonline.co.uk/tol/sport/football/premier_league/liverpool/article7000936.ece

It appears Tony Barrett doesn't know who owns the club. Tom Hicks Jr. is our foul mouthed ex-director, not the co-owner of the club, who is Tom Hicks Snr. A schoolboy mistake from Barrett, don't you think? Especially as it's in his first sentence.

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Re: Hicks $570million richer
« Reply #76 on: January 25, 2010, 03:56:43 am »
Everyone keeps talking about it paying off the money G&H owe for LFC.

Why would he pay it all to our debt? Half that debt is Gilletts.

I wouldnt pay someone else's mortgage....

I cant see him paying anything off unless it is matched by the other daft prick
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Re: Hicks $570million richer
« Reply #77 on: January 25, 2010, 07:09:24 am »
Everyone keeps talking about it paying off the money G&H owe for LFC.

Why would he pay it all to our debt? Half that debt is Gilletts.

I wouldnt pay someone else's mortgage....

I cant see him paying anything off unless it is matched by the other daft prick

For a start I don't think anyone is suggesting that they will pay off the debt, that is not the way that they operate.  However it appears that the banks have already forced them to reduce the debt burden once, they may well have another deadline to meet as regards further debt reduction. 

Similarly I don't think that anyone is suggesting that he will pay Gillett's share. Of course not.  However, having already sold the Canadiens I think the perception amongst most people was that Gillett was in a much stronger financial position than Hicks, with HSG defaulting on loans and not paying creditors or players.  This deal eases his financial position considerably (or it will when it goes through). 

Now that doesn't mean that they will spend the money raised on LFC, of course not, but it does make it highly unlikely that the two are going to default on the loan in the near future, so that avenue of getting rid of them seems to have receded somewhat. It also increases their chances of getting a third investor involved and of being able to borrow funds for the new stadium should they choose to do so.
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Offline Jack Slater

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Re: Hicks $570million richer
« Reply #78 on: January 25, 2010, 08:00:05 am »
Maybe the reason to turn down an offer would be there is or will be something much better in the works. That might explain Purslows confidence of things happening in the near future.

I'd like to know if Purslow admits that such an offer was even on the table, let alone rejected.  But I think it's inconceivable that the MD would have rejected such an offer without discussing with the shareholders.

Anyway IF the offer was made, then it would have been of no interest to G&H.  They arent interested in actually buildng a new stadium.  All they're interested in is talking about how profitable the club would be with a new stadium as a means to talk up the sale price.



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Re: Hicks $570million richer
« Reply #79 on: January 25, 2010, 08:02:18 am »
Hes not 570 mill $'s richer, he just $570's less poorer!!  In many ways I'm richer because I owe way less money to a bank (or banks) than he does.  This guy before the sale probably owes something over $1 billion dollars in cash, and god knows how much interest!!