Author Topic: Liverpool owner Hicks selling Texas Rangers shares  (Read 276099 times)

Offline Sing A Song of Torres

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #440 on: April 8, 2009, 03:01:16 pm »
There is a key difference though in their main sports assets is that investors are actually interested in Gillett's Canadiens, unlike Hicks' Stars or Rangers. People are coming to Gillett desperate to buy the team, rather than the other way around. There are already at least ten groups willing to buy the Canadiens. It must be remembered that like Liverpool, the Montreal Canadiens are a team intrinsically linked with the soul and essence of a city and are a national icon...

Spot on.
If the reports of a 48-hour deadline to submit bids for the purchase of the Canadiens are correct, Gillett will suddenly be in a far more advantageous financial position than Hicks, even if all the money raised from selling the team and the Bell Centre goes towards appeasing current debts.
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Offline RedJam70

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #441 on: April 8, 2009, 03:58:10 pm »
Posted on Tue, Apr. 07, 2009

Schnurman: Hicks is pressing, but banks may not want to play ball
By MITCHELL SCHNURMAN
mschnurman@star-telegram.com
 

Yeah saw that before. What do you make of it? Strikes me that even if he gets this sorted out by getting access to the interest reserves, to change the terms of the loan which he is also wanting will take extra guarantees as is being mooted he will need for the refinancing of the RBS/Wachovia loan. If he puts up more guarantees for the Rangers/Stars loan will he be able to for us as well? I think he's trying to manouver so as not to use any of his own money, he's already stated investors money will go to paying off the loans, so that's taken, using the reserves will give him time to find those investors. It all depends on if he has enough assets to be able to guarantee both loans without touching his own money. It may be in the end he's forced to do so if he wants to hang onto us but in the meantime and until he gets things sorted he's open to selling us.

Good point about Gillett and Nascar. I had forgotten about that and I agree with you that it is his first love.

Offline 4pool

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #442 on: April 8, 2009, 04:15:28 pm »
I personally have no idea. There are way to many variables.

To get more investors for Baseball or Hockey is different than getting them for us I would think. So not the same people will want to invest in say the Rangers who would want to invest in LFC.

Either we are a club of supporters or become a club of customers.

Offline west_london_red

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #443 on: April 8, 2009, 04:17:21 pm »
I personally have no idea. There are way to many variables.

To get more investors for Baseball or Hockey is different than getting them for us I would think. So not the same people will want to invest in say the Rangers who would want to invest in LFC.



Do any non-North Americans own North American teams out of curiosity?
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Offline Jocko

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #444 on: April 8, 2009, 04:21:23 pm »
40 lenders ?

Fuck me .


Called spreading the risk.

Public limited companies typically have thousands of lenders - normally called shareholders.

Private limited companies which have been delisted as part of a buy out have multiple layers of debt. Some straight debt with banks others with the issue of bonds to usually to single investors. 3i specialise in this type of LBO managed debt.

Why would they sell both assets in the States and here, surely selling assets in the States is to keep their grip on us.

The weakness of the sterling exchange rate perhaps? Sell a small proportion of a dollar asset and use it to pay a sterling debt.

Ironically they may be in a better position to refinance as a result of the exchange rate.

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #445 on: April 8, 2009, 04:29:28 pm »
He's only able to take advantage of the exchange rate if someone buys into his stateside teams - does the default on the debt make this less likely? Does the value of the teams deteriorate because of the default?

Offline Sing A Song of Torres

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #446 on: April 8, 2009, 06:10:03 pm »
Do any non-North Americans own North American teams out of curiosity?

At the risk of completely overgeneralising, sports tend to be tied to particular cultures and national identities. Hockey is massive in Canada (no doubt borne of long winters where ice is easy to access); baseball is considered to be America's national sport. There of course is some overlap of interests, but think about how football has taken a long time to catch on in North America and the limited amount of interest in ice hockey/baseball in Britain and Europe.

So, this is my roundabout way of saying that a foreign investor(s) would only be lured to cross-Atlantic franchises (sorry, a dirty word, I know) by the promise of big payoffs. We know that G&H didn't buy Liverpool for either the love of the sport or the team - they bought it because they thought they saw an opportunity to make a bagful of money.

Unless it's part of a consortium, off the top of my head I can't think of a hockey/baseball/basketball/American or Canadian football team that is primarily owned by out-of-North America investors. I'm surprised that Gillett was even allowed to buy the Canadiens as there are very strict government rules in Canada about foreign investment in anything tied to Canadian culture, and you don't get much more Canadian than hockey in Montreal. Unless your a Leafs fan.
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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #447 on: April 8, 2009, 06:12:01 pm »
It's all turning into a circus.  ;D

=============================================================

Celine Dion could bid for Canadiens
Several in pursuit of Montreal hockey team

By Etan Vlessing

April 8, 2009, 12:17 PM ET
hr/photos/stylus/78442-dion_celine_341.jpg

TORONTO -- Canadian songstress Celine Dion, Cirque du Soleil founder Guy Laliberte and Quebec cable giant Quebecor Media have emerged as potential bidders for the Montreal Canadiens NHL team.

Quebec broadcaster Radio-Canada said Wednesday that the Bank of Montreal has signed confidentiality agreements with 10 potential suitors who have until 5 p.m. Thursday to submit formal bids to 80% majority owner George Gillett, a Denver-based sports team and events promoter.

Other interested parties include U.S. investment firm Spectrum Equity, Montreal businessman Stephen Bronfman of Claridge Investments, a cousin of WMG chairman and CEO Edgar Bronfman Jr., and the Caisse de depot et placement, a provincial pension fund giant.

Besides picking up the Canadiens hockey team, a possible buyer will acquire the Bell Center arena in Montreal and a concert promotion division.

Besides the Canadiens, Gillett also owns Richard Petty Motorsports and the Liverpool soccer club in Britain.

http://www.hollywoodreporter.com/hr/content_display/world/news/e3ia7786901a6d39a302020c70db0183458
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Offline rafathegaffa83

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #448 on: April 8, 2009, 06:24:22 pm »
Do any non-North Americans own North American teams out of curiosity?

Nintendo owns the Seattle Mariners baseball team. Rupert Murdoch, who is Australian, used to own the L.A Dodgers up until about five years. A group of Japanese businessmen had a controlling stake in the Tampa Bay Lightning hockey team up until about 1998.

It's all turning into a circus.  ;D

=============================================================

Celine Dion could bid for Canadiens
Several in pursuit of Montreal hockey team

By Etan Vlessing

April 8, 2009, 12:17 PM ET
hr/photos/stylus/78442-dion_celine_341.jpg

TORONTO -- Canadian songstress Celine Dion, Cirque du Soleil founder Guy Laliberte and Quebec cable giant Quebecor Media have emerged as potential bidders for the Montreal Canadiens NHL team.

Quebec broadcaster Radio-Canada said Wednesday that the Bank of Montreal has signed confidentiality agreements with 10 potential suitors who have until 5 p.m. Thursday to submit formal bids to 80% majority owner George Gillett, a Denver-based sports team and events promoter.

Other interested parties include U.S. investment firm Spectrum Equity, Montreal businessman Stephen Bronfman of Claridge Investments, a cousin of WMG chairman and CEO Edgar Bronfman Jr., and the Caisse de depot et placement, a provincial pension fund giant.

Besides picking up the Canadiens hockey team, a possible buyer will acquire the Bell Center arena in Montreal and a concert promotion division.

Besides the Canadiens, Gillett also owns Richard Petty Motorsports and the Liverpool soccer club in Britain.

http://www.hollywoodreporter.com/hr/content_display/world/news/e3ia7786901a6d39a302020c70db0183458

It's an entertainment group run by Celine Dion's husband and manager Rene Angelil that is bidding, not necessarily Dion herself.
« Last Edit: April 8, 2009, 06:38:55 pm by rafathegaffa83 »

Online HarryLabrador

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #449 on: April 8, 2009, 06:31:45 pm »
Nintendo owns the Seattle Mariners baseball team.

It's an entertainment group run by Celine Dion's husband and manager Rene Angelil that is bidding, not necessarily Dion herself.


Thanks for the info, I just found it amusing when I first read it.  ;)
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Online HarryLabrador

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #450 on: April 8, 2009, 11:01:19 pm »
I know tonight's result is dreadfully painful for all Reds fans, but Hicks and Gillett must be panicking right now, if they weren't before. The reality of not progressing any further in the CL leaves a mighty hole in their collective pockets.
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Offline electricghost

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #451 on: April 8, 2009, 11:19:15 pm »
I know tonight's result is dreadfully painful for all Reds fans, but Hicks and Gillett must be panicking right now, if they weren't before. The reality of not progressing any further in the CL leaves a mighty hole in their collective pockets.

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Offline maj

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #452 on: April 8, 2009, 11:19:30 pm »
Guys I give you 200 million dollars. Would you want to get into bed with Hicks and become minority shareholder of a shhiity baseball team and not to mention the debt this lump has run up. How anybody would consider a partnership with Hicks is quite unbelievable.

Offline maj

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #453 on: April 8, 2009, 11:21:56 pm »
Thanks for the info, I just found it amusing when I first read it.  ;)

The money has come from Dions voice thats for sure LOL.

Offline shelovesyou

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #454 on: April 9, 2009, 12:31:01 am »
It's all turning into a circus.  ;D

=============================================================

Celine Dion could bid for Canadiens
Several in pursuit of Montreal hockey team

By Etan Vlessing

April 8, 2009, 12:17 PM ET
hr/photos/stylus/78442-dion_celine_341.jpg

TORONTO -- Canadian songstress Celine Dion, Cirque du Soleil founder Guy Laliberte and Quebec cable giant Quebecor Media have emerged as potential bidders for the Montreal Canadiens NHL team.

Quebec broadcaster Radio-Canada said Wednesday that the Bank of Montreal has signed confidentiality agreements with 10 potential suitors who have until 5 p.m. Thursday to submit formal bids to 80% majority owner George Gillett, a Denver-based sports team and events promoter.

Other interested parties include U.S. investment firm Spectrum Equity, Montreal businessman Stephen Bronfman of Claridge Investments, a cousin of WMG chairman and CEO Edgar Bronfman Jr., and the Caisse de depot et placement, a provincial pension fund giant.

Besides picking up the Canadiens hockey team, a possible buyer will acquire the Bell Center arena in Montreal and a concert promotion division.

Besides the Canadiens, Gillett also owns Richard Petty Motorsports and the Liverpool soccer club in Britain.

http://www.hollywoodreporter.com/hr/content_display/world/news/e3ia7786901a6d39a302020c70db0183458

Perhaps there will be a job for Parry then :)
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Online HarryLabrador

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #455 on: April 9, 2009, 09:26:43 am »
Foreign investors interested in Canadiens
Possible sale of club by Gillett will take 'weeks, plural,' not days, source says


DAVID NAYLOR AND SEAN GORDON

April 9, 2009

Investment bankers working on behalf of Montreal Canadiens owner George N. Gillett Jr. are generating vigorous interest from both Canadian and foreign investors, sources say.

If Gillett opts to sell the Montreal Canadiens, as expected, the process will take "a matter of weeks, plural," rather than days, according to a source. Potential investors have more time to get in the game. Reports this week citing a deadline of 5 p.m. ET today for expressions of interest were based on an outdated document.

The original list of interested buyers was reported to include billionaire businessmen Stephen Bronfman of Claridge Investments Inc.; Joey Saputo, son of cheese magnate Lino Saputo; and Guy Laliberté, founder of Cirque du Soleil. Sources say the list has expanded to include people who own franchises in other pro sports, while some Quebeckers may have dropped off.

The interest of non-Quebec potential owners may have been encouraged by the fact that Gillett, an American based in Denver, has operated smoothly in Montreal. While it was once believed that a non-Quebec owner of the Canadiens would meet resistance, Gillett has instead turned around the fortunes of the franchise since purchasing an 80.1-per-cent interest in 2001, along with sole ownership of the Bell Centre for a total of $180-million U.S.

Fortune Magazine last year estimated the value of the Habs at $415-million (Canadian), not including the Bell Centre. However, the Bell Centre is said to be carrying significant debt - believed to be north of $240-million (Canadian) - and Gillett has reportedly taken money out of the club itself in the form of dividends.

Gillett hired BMO Nesbitt Burns Inc. to value his Canadian holdings. He is also obtaining valuations for his other interests in ski resorts, the Liverpool soccer team and NASCAR.

He has insisted, however, that the process involving the Canadiens is not necessarily tied to a sale of the club and its arena. A source familiar with the process said it's clear Gillett would rather not sell the team, but that he has accepted the eventuality because the asset has appreciated significantly and is among his most saleable.

As a seller, he would appear to have many more options than Molson Breweries did eight years ago. At that time, Gillett was the only bidder.

He could sell his interests in the club and the arena outright.

An alternative would be to sell a slice to a well-funded partner, creating an ownership structure similar to that holding Toronto-based Maple Leaf Sports and Entertainment, which has the Ontario Teachers' Pension Fund as a minority owner. However, Gillett is more likely to receive a premium if he sells majority interest in the team, as the new owner would gain control.

A scenario once contemplated involved taking the club public, according to a source. It's feasible, as the NHL allows public ownership of its franchises up to 49 per cent of shares. In fact, one reason that Gillett hired BMO Nesbitt Burns was because of its expertise in stock sales to a large Canadian retail investor base.

If the blue-sky concept had played out, the Canadiens would have won the Stanley Cup this season, their 100th.

A minority ownership position would have been sold to a rabid public soon after the parade, allowing Gillett to realize a significant cash gain while retaining control of the team (Molson owns 19 per cent of the franchise). But the Gillett group dismissed this concept as the markets sold off and eroded the potential share value.

The provincial government is unwilling to invest in the Canadiens, but Quebec's new finance minister, Raymond Bachand, told reporters yesterday that government finance agencies could help a potential buyer finance a purchase of the team, as did the Caisse de dépôt et placement du Québec for Gillett in 2001.

Gillett has refused to discuss his financial situation, in particular whether he needs liquidity. It is reported that he and Tom Hicks owe £350-million to Royal Bank of Scotland, which is secured by their stake in the European soccer team, Liverpool FC. The interest rate is about 5 per cent, and the loan is due in mid-June. Even if they're able to extend the loan with RBS, which is an open question, or find another lender to pick up the mortgage, the interest rate may go up given the outlook for sports clubs in general and Hicks's position as a creditor.

Hicks recently defaulted on an interest payment for Hicks Sports Group, which is where he holds his stakes in the Dallas Stars and Major League Baseball's Texas Rangers. He's trying to renegotiate those loans with lenders, but bids on the loans in the open market indicate that investors don't believe he'll be successful.


With reports from Andrew Willis, David Shoalts and Boyd Erman

http://www.theglobeandmail.com/servlet/story/LAC.20090409.GILLETT09ART22203/TPStory/Sports
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Offline No666

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #456 on: April 9, 2009, 09:36:06 am »
Fascinating stuff, Harry. No surprise really to learn that Gillett owes huge sums on his Canadian assets as well. Interesting that the market doesn't believe Hicks'll be able to use the interest reserve - doesn't that indicate how little trust the banks must have in him? Up till now it is Hicks who's been able to block the sale of Gillett's half because he wanted majority ownership, now the power balance appears to have shifted.
Can anyone tell us what difference going out at quarter final stage, rather than semi-stage or reaching the final, means financially?

Offline OneKop

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #457 on: April 9, 2009, 10:09:26 am »
Now wouldn't that be a slap in the face for Hick's, if Gillett ends up blocking any sale by Hick's and trying to force him out.
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Offline fry

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #458 on: April 9, 2009, 10:25:16 am »
Fascinating stuff, Harry. No surprise really to learn that Gillett owes huge sums on his Canadian assets as well. Interesting that the market doesn't believe Hicks'll be able to use the interest reserve - doesn't that indicate how little trust the banks must have in him? Up till now it is Hicks who's been able to block the sale of Gillett's half because he wanted majority ownership, now the power balance appears to have shifted.
Can anyone tell us what difference going out at quarter final stage, rather than semi-stage or reaching the final, means financially?

In terms of the American banks, hicks said after the news first broke "i want the banks to be reasonable".  That echos through all this.  He is shitting himself me thinks.
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Offline Bogman

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #459 on: April 9, 2009, 11:02:31 am »
Gillett juggles options

STEPHEN BRUNT

From Thursday's Globe and Mail

April 8, 2009 at 9:28 PM EDT

It should come as no surprise George Gillett would want to pour cold water on the fevered discussion about when and to whom the Montreal Canadiens might be sold.

No one so shrewd would ever want to be portrayed as an anxious, desperate vendor.

Reached in Liverpool, England, yesterday — in advance of a European Champions League match between the soccer club he co-owns and Chelsea — Gillett offered only a single, familiar, on-the-record response to the story that potential buyers were lining up to make an offer on the Habs in advance of a deadline set for today.

"This is a matter of estate planning," Gillett said. "We're assessing a number of options. We have made no decisions in any direction on any asset. It's much too early to suggest that we have made any decisions, and it would be incorrect."

By estate planning, Gillett means that after turning 70 last fall, he is taking steps to increase his personal liquidity, while at the same time presumably decreasing his debt, in order to protect his family.

That's a whole lot more boring than the fire sale of one of the most storied franchises in all of professional sports in the midst of a global economic crisis. But even if that is the full and complete explanation of what is taking place right now, it doesn't mean the Canadiens will not be sold.

What's unquestionably true is Gillett has engaged bankers to evaluate the Canadiens (of which he owns 80 per cent) and the Bell Centre (which he owns in its entirety), as part of a larger review of all of his assets.

(Investment bankers specializing in the food and automobile businesses have been doing the same thing with the other major arms of his family holdings.)

In the case of the NHL club and the arena, a list of potential buyers was compiled and expressions of interest were invited. Those who stepped up and signed a non-disclosure agreement were provided with details of the business's finances.

The deadline for that process was at one point today, but has been moved back to next week, or the week following.

What happens after Gillett views the list of potential buyers and discussions move on to what the team and the building are actually worth is, to a large degree, contingent on whatever other balls he may have in the air.

He might choose to sell one, or several, of his other assets and retain the hockey team and its home. For instance, with the world credit markets starting to loosen up just a little bit, it's possible some of the global heavy hitters who were interested in buying Gillett's 50-per-cent stake in Liverpool FC, but who backed off when money became tight, are now back in the picture.

There is also still the possibility — which is believed to be Gillett's preferred option — that he could carve off a "strip" of all three of his sports properties (the third is a NASCAR team co-owned with Richard Petty) and sell it to investors, leaving Gillett retaining majority control of his stake.

But there are also some rather compelling reasons why the Habs might be the most attractive property Gillett has in his portfolio right now. He bought the NHL team and the arena, both profitable in their own right, for a relative song in 2001, and would receive a significant return on his initial investment.

And though you wouldn't want to bet your life on the overall financial health of the NHL at the moment, owning a heritage franchise, one of the best brands in all of sport (and perhaps being hailed as a hero for bringing ownership back into local hands) would be an enticing proposition for potential buyers, depending of course on the price.

In the meantime, Gillett doesn't seem to be acting like someone in a desperate hurry to get out of the sports business. He was in Montreal for the game against the Ottawa Senators on Monday. He was in Liverpool yesterday. Today, he was back in the air at dawn, en route to Boston for the Canadiens' crucial game against the Bruins.

No doubt there is also a business rationale for the trip, and no doubt the behind-the-scenes action is fast and furious. But whatever the machinations, Gillett is also going to enjoy playing the fan for as long as he possibly can.

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #460 on: April 9, 2009, 11:13:01 am »
anyone spot the Kuwaities at the game lastnight?
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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #461 on: April 9, 2009, 11:16:00 am »
Quote
No doubt there is also a business rationale for the trip

No doubt. He doesn't come to Liverpool for fun.

As for the poor performance - those two are albatrosses.

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #462 on: April 9, 2009, 11:16:49 am »
Now I know we all hate the current owners and we all think they are stupid etc, but they are obviously very good at these types of deals as it has been the way they have made themselves.....

my point being, would Hicks and his geriatric friend be as stupid as some are thinking by leaving this to the last minute, thinking he could get a deal?

Or has he been forced more than even we can imagine?

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #463 on: April 9, 2009, 11:24:13 am »
I think the salient point is that they were very good at these types of deals but the wind has changed - it's a different world and one that doesn't suit them. They're yesterday's men.

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #464 on: April 9, 2009, 11:27:58 am »
I think the salient point is that they were very good at these types of deals but the wind has changed - it's a different world and one that doesn't suit them. They're yesterday's men.

I cant argue with that, but what i cant get my head round, and maybe someone else can explain it to me is as follows (bare in mind this is a thought and im not great at expressing thoughts so may come out all jumbled up)

If I were a millionaire who was an "expert" in these deals and had made vast amounts of money at them, I would surely now be thinking, lets keep the banks sweet, put in some of my own money, ride this bitch out, with lesser interest rates than I had imagined and then when all is bright again I am laughing.

Now the downsides in that are if the thing you are getting the money for is not stable, ie if i had done that with MFI i would now no longer have my house, car etc, but surely Liverpool is quite stable and with the money looking to increase again though less so in tv rights etc, surely its quite safe to put things on the line for?

Offline fry

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #465 on: April 9, 2009, 11:30:33 am »
Now I know we all hate the current owners and we all think they are stupid etc, but they are obviously very good at these types of deals as it has been the way they have made themselves.....

my point being, would Hicks and his geriatric friend be as stupid as some are thinking by leaving this to the last minute, thinking he could get a deal?

Or has he been forced more than even we can imagine?
Its a cloudy area.  Im sure they do not want to leave it to the last minute but they are obviously scrambling to sell shares in their businesses.  The key to this is that both are making financial noise.  Clearly the pair are not acting like things will be fine in a few months. 

Im sure Hicks and G are very talented at LBOS.  But are they talented during the credit crunch.

Its like when good fishermen dont catch anything cause the fish are not there. 
Disclaimer: The above post may not be based on facts even if stated as fact.

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #466 on: April 9, 2009, 11:48:14 am »
I cant argue with that, but what i cant get my head round, and maybe someone else can explain it to me is as follows (bare in mind this is a thought and im not great at expressing thoughts so may come out all jumbled up)

If I were a millionaire who was an "expert" in these deals and had made vast amounts of money at them, I would surely now be thinking, lets keep the banks sweet, put in some of my own money, ride this bitch out, with lesser interest rates than I had imagined and then when all is bright again I am laughing.

Now the downsides in that are if the thing you are getting the money for is not stable, ie if i had done that with MFI i would now no longer have my house, car etc, but surely Liverpool is quite stable and with the money looking to increase again though less so in tv rights etc, surely its quite safe to put things on the line for?

The question is, how much money (liquid) have they really got? Remember Hicks was known as the king of LBO's and as No666 quite rightly put it, they're yesterday's men. It's almost like asking Bernie Madoff the same question, but just a year ago they were all worth a lot of money, but money that didn't belong to them.
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Offline coffeehead

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #467 on: April 9, 2009, 12:34:53 pm »
anyone spot the Kuwaities at the game lastnight?
The way we got spanked last night surely the entire Hicks family going back several generations were there?

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #468 on: April 9, 2009, 12:37:10 pm »
Mesquite: City to own rodeo if Camelot defaults
By Kenny Green, Staff Writer
(Created: Wednesday, April 8, 2009 5:06 PM CDT)

After months of negotiations, Camelot Sports and Entertainment LLC has an agreement in place to purchase the Mesquite Championship Rodeo and the Mesquite Arena thanks to efforts by the City of Mesquite.

As a condition for financing the purchase, First State Bank required the city to agree to fund up to $1 million in the event of a default by the buyers. If the buyers default on the loan, the city would take immediate ownership of the arena, which is valued in excess of $2 million for the amount of the default up to $1 million. Camelot owners have already put down $500,000 in assets, and if they default they would be responsible for the remainder of the balance.

“This is not a common practice for us, but it is common in the state of Texas for a city to be in a supporting role of a major development financially,” said Tom Palmer, manager of economic development for the City of Mesquite. “We are in a very good position with this agreement should things not go as planned.”

Camelot first notified the City Council of their intent to purchase the rodeo from Hicks Sports Group on Nov. 17. Camelot is a new company that was formed with the intention of acquiring and renovating the Mesquite Arena and adding events to compliment the Mesquite Championship Rodeo.

“This will have a tremendous impact on the city,” Palmer said. “The rodeo is the cornerstone of our tourism activity.”

The city council originally approved a Chapter 380 agreement with Camelot on Dec. 15, 2008. As part of the negotiating process to finalize the deal for the purchase, city staff members realized that some changes to the agreement were needed.

Mike McCall, a representative for Camelot, told the council at the Dec. 15, 2008 meeting that this would be a highly successful public-private partnership that would benefit both his company as well as the City of Mesquite.

“Our purpose is to acquire the rodeo and turn it into something it has weaned a little bit away from, something we all can be proud of,” said McCall.

Under the agreement, the city will reimburse Camelot for 75 percent of the cost of the project, up to $1.4 million. The city is expected to pay Camelot over four years at around $400,000 per payment using Rodeo City Tax Increment Finance Reinvestment Zone funds.

Originally Camelot had planned to install three video boards inside the arena. As part of the new agreement Camelot now plans to install two video boards.

“I think that the vision that [Camelot] has excited the council,” Palmer said. “They have a very good plan to improve the arena.”

The city will be responsible for installing a marquee video board sign that will be highly visible on Interstate 635. Camelot will be in charge of management of the marquee including selling advertising and updating the display. The city will retain the use of 20 percent of the display board’s video portion to be used at their discretion.

Camelot will remodel the suites and entertainment areas inside the arena to enhance the value to those attending events. They will also be required to increase the number of non-rodeo events held at the arena by eight events beginning in 2010.

Camelot will reserve 3,000 square feet inside the arena for use by the Mesquite Convention and Visitor’s Bureau. The space will be reserved for use by the bureau for the next five years.

“This is not just a community arena, this is a clearly regional arena, and with a dedicated sales effort we can reach out to the surrounding areas and the surrounding states and bring more people to the rodeo,” McCall said. “We have a commitment to building this rodeo into something bigger than it has ever been.”

http://www.scntx.com/articles/2009/04/08/news_update/915.txt
for those of you watching in black and white Liverpool are the team with the ball

Offline coffeehead

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #469 on: April 9, 2009, 12:42:03 pm »
I cant argue with that, but what i cant get my head round, and maybe someone else can explain it to me is as follows (bare in mind this is a thought and im not great at expressing thoughts so may come out all jumbled up)

If I were a millionaire who was an "expert" in these deals and had made vast amounts of money at them, I would surely now be thinking, lets keep the banks sweet, put in some of my own money, ride this bitch out, with lesser interest rates than I had imagined and then when all is bright again I am laughing.

Now the downsides in that are if the thing you are getting the money for is not stable, ie if i had done that with MFI i would now no longer have my house, car etc, but surely Liverpool is quite stable and with the money looking to increase again though less so in tv rights etc, surely its quite safe to put things on the line for?
I think you're over-estimating how 'expert' these guys are. Being in LBOs doesn't require much intelligence or expertise; it just needs the balls to take the gamble, and arrogance and a willingness to asset strip and destroy people's careers if need be without turning a hair; oh, and a credit line. You need a certain type of personality to be an LBO king but not necessarily much expertise. And the process is quite a narrow one; most LBOS are the same. Once they get out of their comfort zone, as they are with LFC, you can't predict what they'll do and what mistakes they'll make.

I've said it a dozen times here before but a rich businessman is not necessarily a clever businessman. We're too much in awe of businesspeople - which is the way they want it to be, of course - and always assume they are successful due to acumen, when often it's just a bludgeoning drive that gets them far. And lots of luck, of course.

Quote
I would surely now be thinking, lets keep the banks sweet, put in some of my own money,
That would involve them changing the habits of a lifetime. The whole point of their line of 'business' is that they don't put their own money in; they gamble with other people's and with credit. If it looks like a choice between risking their own money or going bust, they go bust. And start again.
« Last Edit: April 9, 2009, 12:44:37 pm by coffeehead »

Offline koppper

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #470 on: April 9, 2009, 01:16:50 pm »
Good stuff about Hicks, Harry - I like this bit most "He's trying to renegotiate those loans with lenders, but bids on the loans in the open market indicate that investors don't believe he'll be successful." I am however disappointed in the total absence of any graphics.
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Offline OneKop

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #471 on: April 9, 2009, 01:50:11 pm »
I've said it a dozen times here before but a rich businessman is not necessarily a clever businessman. We're too much in awe of businesspeople - which is the way they want it to be, of course - and always assume they are successful due to acumen, when often it's just a bludgeoning drive that gets them far. And lots of luck, of course.

Just summed up one Mr Moores
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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #472 on: April 9, 2009, 02:13:14 pm »
I am however disappointed in the total absence of any graphics.



for those of you watching in black and white Liverpool are the team with the ball

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #474 on: April 9, 2009, 05:04:29 pm »
I love this thread - whatever is going on in the world of liverpool it just keeps going.

I can imagine a nuclear war happening and coming out of a bunker and there would still be people on here debating whether H & G are going to sell and to who.

Doesnt stop me joining in either though.

Who knows whats going to happen - I'm giving myself 2months grace away from this until the seasons over.
I'm not even sure H&G have a clue what their plans are to be honest. :wave

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #475 on: April 9, 2009, 05:59:17 pm »
http://news.bbc.co.uk/1/hi/business/7987603.stm


PS Quality post SWR and very true
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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #476 on: April 9, 2009, 07:20:20 pm »
The bbc item is posted in the sponsorship thread, with some chastening analysis.

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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #477 on: April 9, 2009, 08:11:16 pm »
Do any non-North Americans own North American teams out of curiosity?

Nintendo, or somebody high up in Nintendo's hierarchy, is majority owner of baseball's Seattle Mariners.

That's the only one in the 3 NA majors (football, baseball, basketball) that I'm aware of, unless you count MLS' Chivas USA being owned by Chivas de Guadalajara in Mexico and NY Red Bulls owned by Austria's Red Bull.  Barca were supposed to be investing in an MLS franchise in Miami, but that fell through with the credit crunch.
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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #478 on: April 9, 2009, 08:16:09 pm »

I'm not even sure H&G have a clue what their plans are to be honest. :wave

To some extent I understand what you're saying.

On the other hand I would suspect both of them have multiple options being considered. What they don't know right now is which one to choose. At some point in time something will be done. And hence all the speculation. The only ones who really know are those at the very top involved.
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Re: Liverpool owner Hicks selling Texas Rangers shares
« Reply #479 on: April 9, 2009, 08:19:09 pm »
Nothing new, just slightly more insight into his empire.

================================================================

Thursday, April 9, 2009, 11:53am CDT  |  Modified: Thursday, April 9, 2009, 1:16pm
Hicks Sports defaults on $525M in loans
Austin Business Journal

Hicks Sports Group, the co-owner of the Cedar Park Center now under construction and owner of that city’s future American Hockey League team the Texas Stars, has defaulted on about $525 million in loans. HSG also owns the baseball team Texas Rangers and hockey team Dallas Stars.

HSG’s owner Tom Hicks said in a statement last week that he made the move intentionally to help negotiate with banks.

Melanie Carr, spokeswoman for the city of Cedar Park, said HSG’s loan default won’t affect the Texas Stars or the construction of the Cedar Park Center.

That $55 million center is currently under construction at the northwest corner of New Hope Drive and U.S. Highway 183A. Hicks Cedar Park LLC, an affiliate of the Hicks Sports Group, paid $12 million of the center’s cost to the city. Cedar Park is paying the other $43 million.

Under the terms of the agreement, the city will own the Cedar Park Event Center Complex building and an adjacent 31 acres that city officials say will remain city property, and Hicks will purchase the 16-acre mixed use development from the city. Hicks will also manage the event center, which will host the Dallas Stars’ American Hockey League Affiliate, the Texas Stars.

Financial news Web site FINalternatives first reported on April 3 that HSG did not make its interest payment on a $350 million bank-term loan, $100 million second-lien loan and a $75 million revolving credit facility.

Hicks told the Associated Press that the teams won’t be affected. He also told reporters gathered at the Rangers spring training site in late March that he was looking for investors to purchase minority interests in the Rangers and Dallas Stars.

“Like so many other companies and institutions, HSG has been impacted by a global credit crisis which no one could have anticipated,” Hicks said in a statement. “The company is not asking for additional money; it is only asking for full access to the interest reserve account and revolving credit line as well as some amendments in the debt covenants.”

http://www.bizjournals.com/austin/stories/2009/04/06/daily44.html
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