Public protests

It needs to be emphasised that protest isn’t a common course of action for fans of this club.  Tony Barrett in the Liverpool Echo explains it as follows:

In the previous 113 years of its existence, Liverpool FC had never been subject to a single
demonstration by its fans.

In the last eight months alone there have been three – all of which have occurred while
Hicks and Gillett have acted as self-styled club “custodians”.

The first, a display of outrage over farcical ticketing arrangements for the Champions
League final in Athens, was anything but their fault and no-one was suggesting it was,
either, at the time or since.

But the following two demonstrations – the “Save Rafa” march prior to the Porto match in
November and tonight’s – undoubtedly have their roots in public disquiet about the way one
of sport’s finest institutions is being run.

But this isn’t a ‘common’ situation that Liverpool fans are faced with – it’s taken Tom Hicks and his lies and media outbursts to illicit such negative reaction.

The following are some images of the protests by Liverpool fans against the current ownership:

In addition, this YouTube clip is an example of one of the organised demonstrations against the owners (and Hicks in particular).  The lyrics for the two songs are:

They don’t care about Rafa,
They don’t care about the fans,
Liverpool Football Club,
Is in the wrong hands.

Get out of our club,
Get out of our club,
You lying bastards,
Get out of our club.

Upset?

We’re upset alright.  But not for the reasons Tom Hicks gave to a Dallas newspaper following the refinancing agreement last January:

“There was an incredible number of false stories in the U.K. media that got our fans very upset,” Mr. Hicks said. “They were incorrectly told that we were going to sell the team, that we were not going to build the new stadium and that we were going to sack the manager.”

The part about not building the stadium speaks for itself – it’s been delayed indefinately as they cannot afford it.  The part about sacking the manager – well, Klinsmann was just an “insurance policy”!

It goes on…

“Today’s announcement cleared up all the issues, and I have received an outpouring of e-mails supporting me from fans all over the world.  To those that are still concerned, I hope to earn their support with my actions, not words in the tabloids, over the coming years.”

I, for one, would like to see this outpouring of emails, thanking him for loading his acquisition debt onto the club.

Hicks, co-owner to keep control of Liverpool soccer club

Old Times

Amidst all this talk of debt etc, it’s important to remember where we come from.  This clip hopefully conveys what makes Liverpool fans special, and is a throwback to a time before greedy money-men, like our self-appointed “custodians”, appeared on the scene:

Milking The “Franchise”

On taking over Liverpool Football Club, Tom Hicks said all the right things.  He said that: “We are completely passionate about winning”.

He also said that: “We didn’t come over here to be the guys who milk the franchise.”

Fast-forward 22 months and what do we have?

• The introduction of a £29 annual membership card.  This is intended to replace the £3.50 fancard, which was  marketed in the club’s own charter as “the only card that you will need with Liverpool Football Club”.

• The introduction of a similar £20 annual membership card for kids.  £20 for kids!  And no family discounts.

• A £3 increase in ticket prices – the price having previously increased by £1 per annum on average.

• The appalling decision to withdraw the Liverpool Development Association’s ticket allocation.  This will be replaced by more lucrative corporate seats.

• A halving of tickets to supporters clubs around the country.  These tickets will once again be going to the corporates.

When Liverpool fans talked of commercially improving Liverpool’s performance, they meant improving the merchandising and growing the LFC brand abroad.  They certainly didn’t mean fleecing existing fans, which is exactly what the self-styled “custodians” are now doing.

In addition to the above, our manager appears to have virtually nothing to spend in the transfer market, if recent comments are anything to go by:

“We know the situation regarding what we can spend, and we are trying to find solutions if we do not have enough money”

“And we will still try to sign players that will make us better. But if you do not have too much money, and that is clear, we will have to have a little bit of imagination to progress in the market”

“We know we will have to sell some players if we want some cash. So we have to do that”

“Our aim is to bring through young players and that can save us money, money that we can spend on big names”

“We have a fantastic group of young players, in the future they will save us money. At the moment we have to still by big names and the only way to do that is to sell players”

We’ve had huge increases in Sky TV money, three money-spinning runs to the latter stages of the Champions League and yet we have to sell to buy.

So where is all the money going?

Tom Has A New Neighbour

It seems that the ‘good ole boy’ club stick together.  We’ve already documented how Tom Hicks made contributions to George Bush’s gubernatorial campaign, and made Bush rich by purchasing the Texas Rangers from him.

Well the two friends will be reunited once more.  However it will be Hicks, rather than Bush, who will be “the most hated man on the block”:

George Bush buys new home in Billionaire’s Row – The Times

Below is a picture of Tom Hicks’ home:

Given this news, it’s worth noting an article by Chris Bascombe last May:

Bush holds Kop key – NOTW

Let’s all just hope that this doesn’t come to pass.

Gillett In Financial Difficulty

Reports have surfaced suggesting that Liverpool co-owner George Gillett may be in a spot of bother.  It appears that he took out a loan from a little known finance house in Delaware in order to meet RBS’ and Wachovia’s demands for cash security last January.

Crucially, the £75m loan uses his holding in Liverpool as collateral, meaning that he could possibly lose part or all of that holding should should he default on the loan or be unable to refinance.  The finance house, Mill Financial, has decided to sell the debt and there is reportedly one expression of interest.

It’s unclear what kind of charge Mill Financial has over Gillett’s shareholding and how this ranks alongside RBS’ and Wachovia’s charges.

It was alleged at the time of the refinancing that a large factor behind the delays was Gillett’s inability to put up his share of the security.  This news appears to back up those claims, with the huge 19% interest rate taking the debt into ‘junk bond’ territory.

Gillett has already declared personal bankruptcy once in the past (something we’ll hopefully be able to cover in more detail soon).

Gillett trying to refinance debt – Sports Business Journal

Habs could feel ripple effects of owners loan – Globe and Mail

Now They Want The Liver Bird

Liverpool’s owners have scored yet another spectacular PR own goal this week by attempting to trademark the city’s symbol – the Liver bird.  The bird has been the symbol of the city for nigh on three centuries; the most famous example of its use being atop the Royal Liver Building.

The move has outraged city councillors, who have accused the duo of trying to “steal the city’s iconic crest for commercial gain”.

Deputy leader Cllr Flo Clucas said:

“This is outrageous. The Liver bird belongs to all the people of Liverpool and not one company or organisation…..We are taking urgent legal advice on the best steps we can take to ensure the Liver bird remains the proud emblem of the whole city and not the private property of one commercial company.”

She also warned that “the present owners should think again before trampling over an important part of Liverpool’s heritage.”

In February 2007, on taking over the club, the owners stated:

“We fully acknowledge and appreciate the unique heritage and rich history of Liverpool and intend to respect this heritage in the future.”

Gillett and Hicks accused of trying to steal Liverpool’s Liver bird

The Whitewash Clause

Another issue, raised by the Paul Kelso article in the previous post, was how the full debt wasn’t loaded onto the club last January.  We mentioned this in the ‘Debt & Lies’ article:

“The takeover agreement reportedly stipulated that the consent of all board members was required in order for such a course of action to be ratified…Hicks, still upset that he hadn’t got his way, stated shortly after the deal had been completed that he “ought to line up all the lawyers and shoot them” .

The report we were referring to was the following in the Daily Mail:

Liverpool civil war ‘erupted when Parry blocked plans to put club in debt’

That the Chief Sports Writer of a respectable broadsheet should openly refer to this “whitewash clause”: well we hope it would satisfy those who believe that the £105m was some form of altruistic gesture.

Owners To Raid Profits

The following article was written by none other than the Chief Sports Writer of the Guardian newspaper:

Liverpool owners to raid profits to pay interest on loans

Summary of main article

“The payment of interest on, repayment of or security for any liability (contingent or otherwise) due under the facilities [loans] will not depend to any significant extent on the business of Liverpool”, the official offer document to shareholders stated.

So interest, capital & collateral ‘won’t depend to any significant extent‘ => ‘it will depend to some insignificant extent‘. So how do you define the words ‘ depend’ and ’significant’?

Surely paying the full interest amount is ’significant’?  Surely they now ‘depend’ on LFC assets to provide a ’significant’ part of the security for the debt?

MPs Move To Oust Owners

An Early Day Motion to oust the current Liverpool owners has been raised by Walton MP Peter Kilfoyle, and currently has the backing of 25 other MPs:

EDM 2308 – ROYAL BANK OF SCOTLAND AND LIVERPOOL FC

That this House notes the Government’s 60 per cent stake in the Royal Bank of Scotland; further notes that the Royal Bank of Scotland provides a credit facility for the American ownership of Liverpool FC; is aware that the American owners have failed to deliver a new stadium for Liverpool FC, thereby delaying indefinitely the regeneration of one of the most needy areas of the country; and therefore calls upon the Government to ensure that the Royal Bank of Scotland does not renew that credit facility at the end of its current term.

UK Parliament – Early Day Motion 2308

MPs stage coup over new Liverpool FC stadium

Predictably, there has been no response from either Gillett or Hicks on this embarrassing new development.

List of MPs:

Edward O’Hara, Labour MP, Knowsley South
Loiuse Ellman, Labour MP, Liverpool Riverside
Robert N Wareing, Independent MP, Liverpool West Derby
Derek Twigg, Labour MP, Halton Cheshire
Elfyn Llwyd, Plaid Cymru MP, Meirionnydd Nant Conwy
Alasdair McDonnell, Social Democratic and Labour Party MP, Belfast South
Ian Cawsey, Labour MP, Brigg & Goole
Mike Hancock, Liberal Democrat MP, Portsmouth South
Joe Benton – Labour MP, Bootle
Jim Devine, Labour MP, Livingston
Paul Keetch, Liberal Democrat MP, Hereford
David Hamilton, Labour MP, Midlothian
Greg Pope, Labour MP, Hyndburn
Kelvin Hopkins, Labour MP, Luton North
Alan Simpson, Labour MP, Nottingham South
Rudi Vis, Labour MP, Finchley & Golders Green
Lindsay Hoyle, Labour MP, Chorley
Frank Cook, Labour MP, Stockton North
Ann Cryer, Labour MP, Keighley
Janet Anderson, Labour MP, Rossendale & Darwen
Nick Harvey, Liberal Democrat MP, North Devon
Timothy Farron, Liberal Democrat MP, Westmorland & Lonsdale
Harry Cohen, Labour MP, Leyton & Wanstead
Tony Lloyd, Labour MP, Manchester Central