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Paupers to Princes?

Published by Ian John on September 28, 2009

The financial woes at Liverpool have been well documented over the past six months or so. With the clubs owners, Tom Hicks and George Gillette Junior, pulling the plug on the plan for a new stadium due to the ongoing fiscal turbulence in the markets worldwide and the news that despite reportedly telling his chairmen that he needed more funds for players, Rafa Benitez was told flatly that there was no additional money to spend at the start of the season, the club has seemingly been in limbo, while other clubs such as Manchester City, have used the money from their new owner to improve the squad with players that Rafa Benitez has openly coveted in the past.

However Reds fans were given a glimmer of light when this was announced last week;

“We are currently seeking to buy 50% of the shares in the club which is now suffering of debts worth £245 million,” Prince Faisal bin Fahd bin Abdullah, who chairs private firm F6 and a Saudi-based holding firm called Fama Group, was quoted as saying.

“The transaction, upon which a decision is close to be reached, will be worth £200 (million) to 350 million,” he said.

The Prince, another wealthy Saudi Arabian is reportedly close to agreeing a deal with Reds owners to buy a share in the club, though reports range from him buying 25% to 50% depending on who you believe.

In theory this sounds good news for Reds fans. Their much criticised owners find their share in the club watered down, a rich Saudi invests, surely this will mean a brighter financial future?

Possibly, but how will the relationship work? Will the shares be split exactly 50/50? If so who has the final say in how the club is run in the future? What happens if the Saudi Prince wants a new stadium to maximise income, but Hicks and Gillette won’t stump up their share of the cash? Who wins then? Do Hicks and Gillette see the middle east involvement as simply a “cash cow” for the club, a sleeping partner who will just pump his money into the club, provided he is guaranteed a degree of exposure and a return on his asset?

There is so much about this investment that remains unanswered. My one concern is that joint management of a club seldom works. Evans / Houllier proved that. Neither does joint ownership as Hicks & Gillette’s public falling out proved a while back. A third owner only muddies already stirred and dirty water still more.

The investment is a short term financial boost for the club and its owners. Nothing more. It will be interesting to see the direction the club takes should the investment proceed. However one feels with the current dogmatic stance by the current owners, it seems doomed to failure and the club come January and the reopening of the transfer window, will still be the paupers amongst the princes of the Premiership elite.

Image Courtesy of ***MKGraham*** on Flickr.com

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