CHINESE BILLIONAIRE LOOKS TO BUY LIVERPOOL

A flurry of reports in the UK media is suggesting that Chinese billionaire Kenny Huang is negotiating to take control of Liverpool.  Huang isn’t looking to buy the club directly, but is instead bidding to the Royal Bank of Scotland to buy the club's £237 million debt. While this in itself wouldn’t give him control, it would provide Huang with what is being described as "a ridiculously large amount of leverage" to oust the English Premier League team’s current owners, Tom Hicks and George Gillett.

A source close to the deal that spoke on condition of anonymity detailed the process:

"He wants to get it done quickly so investment can come this summer. Liverpool need investment in the playing squad and infrastructure and Huang wants to build the stadium. The club has an outstanding reputation but does not have the infrastructure to keep with it and make it grow.”

"By going to RBS, you can leverage a large amount of pressure that no-one else can on the owners. It is a deal which has no interest in shareholders, meaning there will be no profit for Hicks and Gillett."

Not surprisingly, the current ownership isn’t in favor of this deal which will see their control of the team undermined and not create any profit.  Currently, Gillett has informed the RBS that he’s trying to work a deal with Syrian businessman Yahya Kirdi to delay Huang’s effort to buy their debt. Hicks and Gillett put Liverpool up for sale earlier this year, but there’s not been any sign that a deal is forthcoming in the near future.  A New York-based equity firm made an attempt to purchase a 40% stake prior to the club being put on the market, but their bid was rejected by the current ownership. 

The outcome of all of this has considerable impact on the team’s future both on and off the pitch.  Liverpool’s star player Fernando Torres returned to training this week, but his longterm future with the club is still up in the air.  According to a Torres spokesman, he’ll be waiting to see what happens in the front office:

"Torres was briefed on the approach some time ago and will be encouraged, on his return to Melwood, to await the outcome of discussions between the tycoon and Royal Bank of Scotland".

Hicks and Gillett purchased Liverpool for a reported £219 million in 2007.  After a disappointing season which saw the team finish 7th in the English Premier League and amid mounting debts, they put the team on the market hoping to find a buyer to take it off their hands at a profit.