Tom Hicks scuppers Liverpool FC sale as DIC talks grind to a halt

Mar 11 2008 by David Bartlett, Liverpool Daily Post

DUBAI International Capital’s attempt to buy into Liverpool FC last night appeared to have ground to a halt, after co-owner Tom Hicks “terminated discussions” over the sale.

Hicks said that during negotiations yesterday in the Middle Eastern state, it had become clear DIC wanted to manage the club by committee, and claimed this was not in the best interests of the club.

DIC last night said it had no comment to make on the matter.

As reported on Saturday by the Daily Post, fellow co-owner George Gillett had agreed in principle to sell 49% of is stake to DIC and the other 1% to Hicks – allowing him to become the majority shareholder.

And earlier yesterday, DIC had issued a statement saying discussions were at an advanced stage.

The statement said: “Dubai International Capital confirms that it is in advanced discussions with the co-owners of LFC but that no agreement has been reached on price or shareholding percentage.”

The Daily Post understands the statement was intended to make clear that no legal agreement had been reached but that the deal was moving ahead.

But around five hours later, Hicks released his own statement, in which he made clear he was vetoing the sale.

There have been reports the veto is time-limited, but Hicks insists that is not the case.

According to a source “it became apparent quite quickly” in the meeting at DIC’s offices that the two parties would not be able to agree to a management structure. Hicks was represented by senior executives, but not his sons, and it is understood DIC’s chief finance officer, Simon Edwards, negotiated for the company.

Hicks’s statement read: “Based on a meeting held earlier today in Dubai between my representatives and officials of Dubai International Capital LLC, as well as other recent contacts between us and them, I have decided to terminate any further discussions with DIC regarding their possible purchase of a minority stake in Kop and, in turn, in the club.

“DIC made it clear that if they invested in the club, they would want it to be managed by committee.

“Based on my 13 years of successful experience as an owner of professional sports teams, and based in particular on the situation at Liverpool Football Club over the past year, it is clear to me that such a committee approach would not be in the best interest of Kop, of the club or of the club’s loyal and passionate supporters.

“Accordingly, I have decided to exercise my right under the Kop Football (Holdings) Limited partnership agreement to veto any sale of any portion of Kop and the club to DIC.

“I and my colleagues and representatives will continue to explore a number of other options with regard to the ownership of Kop and the club aimed at achieving an appropriate ownership, financial and organisational structure for Kop and the club over the long term.”

Last night, a spokesman for DIC would not comment.

The Daily Post understands Hicks’s statement is unlikely to dent the resolve of DIC to become involved in the ownership of LFC.

However, for those hoping for a quick resolution of the ownership saga, Hicks’s statement is unlikely to make comfortable reading.

SPORT: PAGES 13, 42-44;

LDP LEGAL: PAGE 17

davidbartlett