Owners pondering new LFC shares issue?

Tom and George remember the moment Rafa asked for a transfer budget this year

Tom and George remember the moment Rafa asked for a transfer budget this year

Rumours from Anfield suggest that the clubs owners are considering plans to dilute their shareholding in an attempt to bring in new capital to our debt saddled club.

Both owners currently own a token 1 share in Kop Holdings Ltd – the company that effectively owns Liverpool FC – giving them an even 50% split of the club.

A new share issue would enable a third investor or group of investors to take a stake in the club.

Several media sources have indicated that the owners may consider giving away (between them) a 30% share of the club for upwards of £100M.

It would be a substantial change in strategy, certainly from Tom Hicks, who has previously insisted that he would not give up his ‘technically’ majority vote in the club.  It is suggested that Christian Purslow is using his investment background to try and orchestrate such a deal.

As we reported earlier this year, Liverpool’s projection to keep their debt under control was heavily reliant on consistent qualification in the Champions League for the next 5-6 seasons.  This year the reds have banked around £14M in transfer profit, and the banks were so concerned this summer that they demanded the owners clear at least £60M of the loan before they allowed a new loan to negotiated.

Liverpool are carrying debt at just under £300M – a loan which was used to effectively buy the club and clear off previous debts.

If these rumours are correct – would the best course of action not be to offer Liverpool fans, or a Liverpool fans’ consortium the opportunity to invest in the club?

9 comments on
Owners pondering new LFC shares issue?

  1. Talk about takeovers and liquidation of shares and arab ward the benefit of the footballing side of the club which should be primary I agree with the above that Fans owning their own club is problematic at best because we would allow our emotions to cloud our judgement too often.We’ve been hearing all this nonsense of new investors or owners coming in over the past five years so i’ll believe it when i see it!.I’d be very surprised if anything happened in the next five years other then us being told lies and more lies!.

    These American’s are just taking us all for a ride announcing I totally agree with the fans shareholders suggestion, problem is H&G would then have to answer directly to the fans at shareholders meetings which given the current situation would be very awkward for them, though I’d love the opportunity to buy It could work if we still had majority share holders elected (business minded) officials who speak on behalf of a majority of fans who are shareholders but the key is to think ‘objective’ about what is best for the club both now and long term , meeting the needs of a global market !, keeping the ‘Liverpool brand’ expanding and competing as well as having the rite consensus to work toward the benefit of the footballing side of the club which should be primary .some shares something like this when they see the fans anger boiling over!.It’s just a means to buy more time until we win a few games then people will forget everything.

  2. I agree with the above that Fans owning their own club is problematic at best because we would allow our emotions to cloud our judgement too often.
    Im not saying i wouldn’t love to own a part of our historic club however i also know that allot of my judgement calls would come from the heart rather than the head and that would be no good for the ‘business’ side of the club .
    It could work if we still had majority share holders elected (business minded) officials who speak on behalf of a majority of fans who are shareholders but the key is to think ‘objective’ about what is best for the club both now and long term , meeting the needs of a global market !, keeping the ‘Liverpool brand’ expanding and competing as well as having the rite consensus to work toward the benefit of the footballing side of the club which should be primary .

    But again we’ve heard allot of talk about takeovers and liquidation of shares and arab takeovers and we are still stuck with the ‘Yankidoodaldandies’ so i agree that ill believe it when i see it .

  3. I would urge everyone – fans and rich Arabs etc to stay well clear of Liverpool for at least 12 months. I’m a season ticket holder and we are beginning to get them where we need them. They are struggling with the debt and a rights issue would help them while keeping control. Ask yourself this, who wants to help the yank liars?? Let them hang themselves until they have no other option but to sell. Diluting their shareholding could mean I am still posting about them in 10 years!!!!!!!

  4. We’ve been hearing all this nonsense of new investors or owners coming in over the past five years so i’ll believe it when i see it!.I’d be very surprised if anything happened in the next five years other then us being told lies and more lies!.

    These American’s are just taking us all for a ride announcing something like this when they see the fans anger boiling over!.It’s just a means to buy more time until we win a few games then people will forget everything.

  5. Perhaps the LFC owners should look at a full stock market flotation? Alot of fans out there would love to get involved and own abit of LFC.
    I for one would love to buy shares in LFC. I believe there is a market for these shares and the debt could be cleared and a decent transfer kitty put in place. A stadium could also be financed.

    Say they sold 10 Million shares at £100.00 each? Mimimum purchase of 10 shares. This would bring in 1 Billion euro? The fans, banks, stock brokers & Arabs would be lining up to buy. A club like LFC in any investment portfolio would be very impressive.

  6. Not convinced any football club should ever be owned by the fans they run decisions based on poll’s and personal opinion without knowing fully what certain situations are about. If the fans had there say and we didn’t constantly win the league and buy 30 million pound players every transfer window we’d be sacking every manager left right and centre, the truth is football fans are too fickle.

    I still want G&H out because they’ve brought nothing to the club and we all want more money and a new stadium but get some billionnaire backing us with our fans and limitless resources we’d be the Liverpool of the 80’s again.

  7. I totally agree with the fans shareholders suggestion, problem is H&G would then have to answer directly to the fans at shareholders meetings which given the current situation would be very awkward for them, though I’d love the opportunity to buy some shares

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