Liverpool’s US owners secure £350m package

Jan 26 2008 by David Bartlett, Liverpool Daily Post

AN UNEASY peace appeared to break out at Anfield last night as Liverpool FC’s American owners agreed a £350m loan deal which will trigger the start of work on the club’s new stadium.

It followed the Daily Post’s exclusive revelation yesterday that Dallas-based HKS had been chosen by co-owners Tom Hicks and George Gillett as the architects of a new, £300m 71,000-capacity stadium for the club.

Although the club will have to submit new planning applications for the revised stadium plan, it is hoped work could start within three months with completion by August 2011.

In another apparent olive branch to supporters who have remained solidly behind manager Rafa Benitez, Hicks also said the Spaniard has his “enthusiastic” support.

Last night, John Mackin, of Reclaim the Kop, said: “They have bought themselves some time, but actions speak louder than words.”

Yet while co-owner George Gillett is clearly signed up to the refinancing package, he did not speak about the deal yesterday.

His office were refusing all interview requests last night, and his recent actions are sure to increase speculation over the solidity of his relationship with Tom Hicks.

Yesterday Kop Football Holdings, owned by Hicks and Gillett, announced it had secured a £350m financing package, from the Royal Bank of Scotland and US investment bank Wachovia.

As was widely expected, £105m of the debt has been placed on Liverpool FC itself with the remaining £245m placed on the holding company.

HICKS said: “This new financing package is a strong vote of confidence in the club’s financial strength and a recognition of the exceptional opportunity represented by the construction of the club’s new state-of-the-art stadium at Stanley Park.

“The successful completion of this financing package is particularly significant in light of the currently challenging credit-market environment.

“With the refinancing process now done, club supporters can look forward to the timely commencement of construction work on the new stadium and renew their focus on actions on the pitch.”

In the absence of any statement from Gillett, it was also left to Hicks to kill off speculation that Benitez was on borrowed time since it was revealed Jurgen Klinsmann had been lined up as possible replacement.

Hicks said: “Since the meeting with Rafa on December 16, at which some widely reported communications issues were discussed, Rafa has been assured that he has continuing and enthusiastic support as the club’s manager.

“Reflecting that support, Kop recently approved his transfer payment request to sign Martin Skrtel for £6.5m and is in discussions with Rafa and club management regarding additional player signings this summer.

“Rafa is under contract for two more seasons following this season.

“I am solidly behind Rafa and am confident of the team’s competitive prospects under his continuing leadership.”

HKS – regarded as Tom Hicks’ favourite firm – revealed their original designs to widespread acclaim in the summer of 2007 but they were dropped last December because of soaring costs.

Hicks and Gillett then asked HKS and Manchester-based AFL, who were behind a previous set of plans rejected because they were “obsolete”, to create revised schemes.

Kop Football Holdings said the selection of HKS was based on the firm’s successful development of an “improved stadium design that meets the objective of a cost-effective, supporter-friendly design”. About £50m has been saved on the scheme – which is distinctly similar in look to the previous design – primarily by moving the location of the underground car park and reducing the size of the concourses.

It is understood that had the underground car park remained where it was planned – beneath north and west stands – it could have taken nine months and considerable expense to dig the hole into rocky terrain.

Hicks said: “HKS has developed a more efficient design that, at the same time, is just as stunning as its original design.

“Liverpool supporters should have high expectations for the future: a premier sporting experience at their new stadium at Stanley Park and a winning club on the pitch for years to come.”

A spokesman for Kop added: “The new stadium, scheduled to open in August 2011, will ensure that Liverpool FC and its supporters get the much-anticipated groundbreaking iconic design at a capacity of approximately 71,000 seats, significantly more than is currently available at Anfield.

“The new stadium will feature enhanced amenities for the club’s supporters while preserving the history and traditions of Anfield and the club itself.

“It will be anchored by an expanded 18,500-seat standalone Kop, an increase of more than 5,000 seats.”

NEW York-based KUD International has been appointed as project managers for the stadium.

The US firm has a London office but will establish a Liverpool base to oversee the scheme.

KUD has developed projects globally, including London’s Silvertown Quays, a large-scale mixed use scheme, as well as collegiate and professional stadia in the United States including the Philadelphia Eagles’ Lincoln Financial Field and the San Francisco Giants’ AT&T Park.

Laing O’Rourke, currently working with Grosvenor on the £1bn Liverpool One development, has also joined.

The three-pronged announce-ment was also aimed at shoring up the Americans’ ownership of the club.

The Daily Post understands that Dubai International Capital (DIC) is still keen to take over at least part of the club, but will cool its interest in light of yesterday’s announcements.

Mr Mackin said: “The debt is still on the club, because any payment on that loan is going to come out of what the club makes.

“I think the trust has been broken, and it’s going to take an awful lot more than this.

“I can see a direct correlation between the breakdown in trust and performance on the field.”

He said the club traditionally had a slow start to the season but picked it up midway through.

“This year we started OK but now we have collapsed. There’s no confidence in the players.

“Hicks has said what sound like the right words (about Benitez), but it’s not a ringing endorsement.

“A vote of confidence is usually the kiss of death.

“They have bought themselves some time, but actions speak louder than words.”

Liverpool Walton MP Peter Kilfoyle, who represents the Anfield area, last night said he wanted to see work start before giving his backing to the current owners. “I am like the Liverpool fans – my confidence in this particular ownership has been very much shaken.”

TO SEE further images of the new-look stadium visit www.liverpooldailypost.co.uk

OPINION: PAGE 6

davidbartlett