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Liverpool co-owner agrees $550m NHL deal

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DHSC

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Liverpool owner George Gillett has agreed to sell the NHL's Montreal Canadiens to the Molson family in a deal that could help lift the financial cloud over the Premier League club.

The deal to sell the NHL's most successful ever team is worth a reported $550m (£330m).

Gillett put the Canadiens up for sale earlier this year as he scrambles to find funds to meet obligations on debt incurred as part of his takeover of Liverpool in partnership with Tom Hicks.

The sale includes Gillett's 80% stake in the team, the Bell Centre arena, and the Gillett Entertainment Group. Brewing moguls the Molsons, who sold the controlling interest in the team to Gillett for around $275m (£165 ) in 2001, already own the remaining 20% share.

''This is a very exciting time for our family and we are grateful to the many people and organisations who came forward to offer their collaboration in the development of our proposal,'' Geoff Molson said in a statement.

The sale must first be approved by the NHL's Board of Governors, and will likely not be completed for several more weeks.

The NHL's approval of the sale would, however, seemingly be only a matter of course.

NHL commissioner Gary Bettman responded positively to the news of the deal, saying: ''I think to the extent that they've been able to find people who are obviously passionate about the game and structure a transaction that makes sense for everybody, that's a real plus for the franchise and the fans in Montreal.''

News of the deal comes a little over two weeks after Liverpool's accountants warned of ''significant doubt'' over the club's parent company's ability to continue as a going concern with debt repayments due on July 24.

The company formed by Gillett and Hicks suffered a loss of £42.6m ($70.5m) last year, largely on interest repayments. The pair took out a loan of £350m ($580m) when they bought the club in 2007.

While Hicks and Gillett have been seeking other investors for Liverpool, they have so far come back empty-handed, meaning funds from a sale of the Canadiens could be needed to help cover upcoming payments.

Hicks has also been seeking to sell off elements of his own sporting empire - which includes Major League Baseball's Texas Rangers and the NHL's Dallas Stars.

Hicks' situation is further complicated as the Hicks Sports Group in April defaulted on a £325m loan ($525m) relating to the Rangers and Stars.

The Canadiens, who are celebrating their centenary year, are the oldest continually run professional ice hockey team in North America. Their 24 Stanley Cup titles are the most in the NHL.

''Our family has been very proud to be associated with the Montreal Canadiens over the past eight years and particularly to be a part of their Centennial Season,'' Gillet said after confirming the deal.

''I am fully confident that the Molson brothers, who have been a great part of the heritage of the club, will ensure the preservation and development of this great sports institution.''

The Molson family first bought the team in 1978, although their involvement dates back to the 1950s.

http://soccernet.espn.go.com/news/story?id=656271&sec=england&cc=4716
 
i'm resigned to them staying. hopefully this means they will put up the money for the stadia and for snoogy doogy.
 
It just means that he pays back another loan over there. It does not mean he has any intention of doing anything good for LFC certainlt not in a transfer sense, how on earth them pricks were allowed to borrow at nearly 10% interest against the club..... its just fucking scandalous.

Im sick of those cunts. You can ignore when the team is playing so well but clearly thats in danger now, anyway for a group of fans who take such pride in the team and in the "liverpool way" we have really been a disgrace and just sucked it in. I really am fucking sick of them its just not fucking on what they are doing and we should not tolerate it and i wish the fuck we as fans grew some fucking balls and boycotted a home game, its the only protest they will take notice of. Fannying around with silly little marches to a pub outside... ffs... pricks... there used to be enough balls in Liverpool for a proper fucking protest.

Hoping things are gonna get better is risky as hell, If we just sit mildly by and keep thing ticking over them two fucking leeches will drag us down, gravity is fucking gravity, we are not immune to bad debts and ownership just because we are LFC. We just have to get rid of them cunts. Put it this way what if we do fucking win the league? Do you want them two pricks claiming any more credit?

Then they charge the club for their "work".... its unbelievable it really is. Im firmly of the opinion that every match going fan is unintentionally damaging the club by de facto support of the owners. Just one fucking game is all it would take to force their hand, just one.
 
[quote author=Molbystwin link=topic=34286.msg892242#msg892242 date=1245571091]
It just means that he pays back another loan over there. It does not mean he has any intention of doing anything good for LFC certainlt not in a transfer sense, how on earth them pricks were allowed to borrow at nearly 10% interest against the club..... its just fucking scandalous.

Im sick of those cunts. You can ignore when the team is playing so well but clearly thats in danger now, anyway for a group of fans who take such pride in the team and in the "liverpool way" we have really been a disgrace and just sucked it in. I really am fucking sick of them its just not fucking on what they are doing and we should not tolerate it and i wish the fuck we as fans grew some fucking balls and boycotted a home game, its the only protest they will take notice of. Fannying around with silly little marches to a pub outside... ffs... pricks... there used to be enough balls in Liverpool for a proper fucking protest.

Hoping things are gonna get better is risky as hell, If we just sit mildly by and keep thing ticking over them two fucking leeches will drag us down, gravity is fucking gravity, we are not immune to bad debts and ownership just because we are LFC. We just have to get rid of them cunts. Put it this way what if we do fucking win the league? Do you want them two pricks claiming any more credit?

Then they charge the club for their "work".... its unbelievable it really is. Im firmly of the opinion that every match going fan is unintentionally damaging the club by de facto support of the owners. Just one fucking game is all it would take to force their hand, just one.
[/quote]

Hahahaha , what a shower of twats we are.
Are you a match going fan Molby? How often do you get to Anfield?

regards
 
"The Gillett Entertainment Group". :🙂 The mind boggles. Who did he have on the roster - Leo Sayer, the Krankies and The James Last Orchestra?
 
It seems to me Gillett has "chosen" between us and the Canadiens.
He could easily have sold his share of Liverpool for a decent profit, even now, and pissed off back to Canada and had an easy life of it. But he hasn't. Why? Is he trying to do the right thing, or just sees Liverpool as a much better medium long term investment?


regards
 
To presume that they're sticking around to do the right thing kinda assumes that they think they've done something wrong, which I don't believe they do.
 
[quote author=keniget link=topic=34286.msg892248#msg892248 date=1245574279]
To presume that they're sticking around to do the right thing kinda assumes that they think they've done something wrong, which I don't believe they do.
[/quote]

Gillett has already said they had done things wrong and regrets it

regards
 
The vitriol against the americans on this forum is a bit over the top.

They took on a bit much to chew at a time when the world was entering recession. Considering they are not that wealthy, they have still supported the club and have dared to dream big for the club. The stadium plan, even if only a thought at this stage, is grand. Their signings in the transfer window have been grand. Rafa has most certainly been well funded and supported.

But when push came to shove they have both chosen to sell off their other assets before Liverpool, Assets that have proven to be their bread winners previously.

I'm still sitting on the fence with these two and will cheer the positive things that they try to do.

They now need to put a refinancing package in place with increased equity ratio coming from their own dosh. Things will fall in place. This is good news for liverpool and now the ball is in Mr. Hicks' court....
 
[quote author=Molbystwin link=topic=34286.msg892242#msg892242 date=1245571091]
It just means that he pays back another loan over there. It does not mean he has any intention of doing anything good for LFC certainlt not in a transfer sense, how on earth them pricks were allowed to borrow at nearly 10% interest against the club..... its just fucking scandalous.

Im sick of those cunts. You can ignore when the team is playing so well but clearly thats in danger now, anyway for a group of fans who take such pride in the team and in the "liverpool way" we have really been a disgrace and just sucked it in. I really am fucking sick of them its just not fucking on what they are doing and we should not tolerate it and i wish the fuck we as fans grew some fucking balls and boycotted a home game, its the only protest they will take notice of. Fannying around with silly little marches to a pub outside... ffs... pricks... there used to be enough balls in Liverpool for a proper fucking protest.

Hoping things are gonna get better is risky as hell, If we just sit mildly by and keep thing ticking over them two fucking leeches will drag us down, gravity is fucking gravity, we are not immune to bad debts and ownership just because we are LFC. We just have to get rid of them cunts. Put it this way what if we do fucking win the league? Do you want them two pricks claiming any more credit?

Then they charge the club for their "work".... its unbelievable it really is. Im firmly of the opinion that every match going fan is unintentionally damaging the club by de facto support of the owners. Just one fucking game is all it would take to force their hand, just one.
[/quote]

So we damage the team on the pitch to try & effect the owners? No. Afraid not.

As for it not doing anything 'but pay off a loan' it means Gillet's financial situation is vastly improved so his ownership of us need not be compromised by his credit rating.
 
It's not surprising at the level of vitriol when you get newspaper after newspaper using the debt levels as a reason we could lose Xabi, Mascher and now Torres, and why we could be losing out on our targets in the transfer market. I really hope we get that Johnson deal done as if we don't, these stories will just increase and more people will get all het up.

I can't say I understand the finances that well but I found these figures in the Telegraph about the £350m loan and will try to break them down into the way I see it.

£350m - total amount borrowed from Royal Bank of Scotland and Wachovia
£105m - amount of debt placed on to the club's books to fund the start of the new stadium and for working capital and buying new players
£185m - acquisition debt borrowed by Tom Hicks and George Gillett to cover the cost of their takeover last February
£60m - debt inherited by Hicks and Gillett from club's previous regime
£225m - guarantees provided by Hicks and Gillett to secure the borrowings
£28m - estimate of the interest that will have to be paid on the total value of the new borrowings
£15m - thought to be the fees charged by the banks for arranging new loans

The £350m is the total figure of the numbers I highlighted in green. For that £350m loan to be approved, G&H had to provide personal guarantees of the figure highlighted in blue.

So, it seems to me that almost a half of that £350m loan was used to fund the workings of Liverpool FC from transfers to any work on the new stadium, and it wasn't just a case of G&H piling on the debt to fund their buyout.
 
[quote author=FoxForceFive link=topic=34286.msg892271#msg892271 date=1245577040]
Tinto, stop using logic & reason immediately.

*readies banning stick*
[/quote]

I had to warn Richey about doing that too.
 
[quote author=FoxForceFive link=topic=34286.msg892271#msg892271 date=1245577040]
Tinto, stop using logic & reason immediately.

*readies banning stick*
[/quote]

Please don't ban me! I promise to be more hysterical in future, okay?

Looking at those figures, it did make me wonder if Moores could have borrowed the £105m figure used for the workings of the club, but I guess he simply didn't have the clout to obtain such a loan or was unwilling to put up the required personal guarantees that G&H were willing to do.

So, Gillet bought the Canadiens for £165m and sold for £330m... that's not bad going even if you presume the difference isn't all profit, isn't it?
 
[quote author=keniget link=topic=34286.msg892248#msg892248 date=1245574279]
To presume that they're sticking around to do the right thing kinda assumes that they think they've done something wrong, which I don't believe they do.
[/quote]

ha ha a lone voice of dissent amongst millions of fans worldwide. priceless!
 
[quote author=KopKing link=topic=34286.msg892304#msg892304 date=1245580700]
[quote author=keniget link=topic=34286.msg892248#msg892248 date=1245574279]
To presume that they're sticking around to do the right thing kinda assumes that they think they've done something wrong, which I don't believe they do.
[/quote]

ha ha a lone voice of dissent amongst millions of fans worldwide. priceless!
[/quote]

What the fuck does that mean?
 
[quote author=KopKing link=topic=34286.msg892304#msg892304 date=1245580700]
[quote author=keniget link=topic=34286.msg892248#msg892248 date=1245574279]
To presume that they're sticking around to do the right thing kinda assumes that they think they've done something wrong, which I don't believe they do.
[/quote]

ha ha a lone voice of dissent amongst millions of fans worldwide. priceless!
[/quote]

I think you need to re-read what he just said.
 
He said THEY dont believe they're done something wrong. Not that HE doesnt believe they havent done something wrong.
 
Kopking only ever comes out of the woodwork when there's something remotely contraversial to post.
 
In response to Vlad.

No I live in Spain, this in its self would not present a problem if i had the kind of cash required to fly home every weekend and get a season ticket but i dont. Yes im an OOT but im fucked if that makes me less of a fan than any other fucker.

The key word in my angry rant was "uninentionally", I'm not having a go at anybody in particular i'm just sure that we truly have to get rid of them bastards, the only real way that can happen is to let it be known how fucked off we are and you need to vote with your feet. When i lived at home, both in Liverpool and when not in Liverppol I was a regular match goer, home and away and I realise its importance for many fans, including myself, i didnt take a camera and i never wore a jester hat neither. Bollox i'm ranting again... ahh fuck it... they just give me the shits them fellas. I wasn't trying to blame the fans i'm just pointing out that we are NOT powerless to stop them and we can and we SHOULD do something about it not just sit about and take it. Whatever way you look at it they are fucking us over and we are paying for the privilege, or should I say YOU are Vlad because you are lucky enough to get to the games.

They are shady fucking bastards and will always always be looking to milk us. Simply put I just do not believe for a split second that they care about the club Vlad in any way at all, at least not in any way that either you or i would appreciate.

As for Gillet selling up the Canadiens, well so what! I have read too much and heard too much to believe for one second that that prick has anybody but himself at No.1 ... that same prick tried to sell up for a quick buck almost from the get go so lets not pretend that he is trying to do the right thing now. He sells up the Canadiens in order to be our knight in shining armour does he?? OK then Mr.Gillet use your money, ill gotten or otherwise, to pay off your share of the debt burden you placed against the club.... yeah right...

A fucking leech of a man just got a few more quid from another bunch of fans is how I read that story, and IMHO the only way we can rightfully get rid of them is to do the only useful protest we have ie to stop putting money in their wallets. I simply do not want them anywhere near the club. Stop me if i'm wrong but it's the only way to get rid of scum like that.

and yes i am pissed off.

but i do extend my regards also.
 
well hopefully selling the hockey club sends some money our way, unless of course that is laden with debt that needs to be repaid too. can't be bad news though yay :-\
 
[size=10pt][size=10pt][size=10pt]George Gillett offloads to ease Liverpool finances[/size][/size][/size]

James Ducker

George Gillett Jr, the Liverpool co-owner, has moved to ease the club’s financial troubles by agreeing to sell his majority stake in the Montreal Canadiens ice hockey franchise.

However, Rafael Benítez, the manager, will still face a fight to keep his best players at Anfield this summer. Molson, the brewing company, has agreed to buy Gillett’s 80.1 per cent stake in the Canadiens for about £330 million, with the deal expected to be concluded before July 24, the deadline by which Gillett and Tom Hicks, his business partner at Liverpool, must have renegotiated their £350 million credit deals with Royal Bank of Scotland (RBS) and Wachovia.

Gillett put the Canadiens up for sale this year and has been searching for a buyer to raise the funds needed to consolidate his position at Anfield, with RBS and Wachovia expected to demand more than the £185 million in personal guarantees that the Americans have made to satisfy their concerns.

The move by Gillett comes after KPMG, Liverpool’s auditor, cast “significant doubt†on their ability to continue as a “going concernâ€, with the accounts released this month revealing that Kop Football (Holdings) Ltd had made a pre-tax loss of £42.6 million and that the club paid £36.5 million in interest on their debts in the financial year to July 31, 2008.

Molson, which owns the remaining 19.9 per cent share in the Canadiens, sold Gillett the controlling stake in the franchise eight years ago for about £165 million, but was prepared to buy it back for double that amount.

The sale, under which the Molson family will acquire the Bell Centre, where the Canadiens play, and the Gillett Entertainment Group, as well as the team, must first be approved by the National Hockey League (NHL) board of governors. However, no glitches are expected, given the buyer’s long association with the NHL.

Liverpool could receive another shot in the arm if Hicks manages to offload about half of his 95 per cent stake in the Texas Rangers baseball team to a consortium headed by Nolan Ryan, the president and a former player, or David McDavid, a Texas businessman. The Rangers are valued at $405 million (about £245 million).

Even if that happens, though, Benítez may struggle to keep some of his best players. Javier Mascherano could leave, with Barcelona and Real Madrid prepared to pay more than £30 million to sign him. The Argentina midfield player wants to move to appease his pregnant wife, who is unsettled on Merseyside.

Benítez will hope to conclude an £18.5 million deal for Glen Johnson, the Portsmouth right back, early this week, but a summer that Steven Gerrard, the captain, described as “crucial†to Liverpool’s hopes of winning the Barclays Premier League title next season is already turning into something of a nightmare.

http://www.timesonline.co.uk/tol/sport/football/premier_league/liverpool/article6549562.ece
 
David McDavid.... arrrfff arrfff.....

So our transfer plans rely on two cowboys selling up elsewhere pretty sharpish and then convincing the banks that they have actually got the money, like real actual money, if it all goes tits up.... Aces. I am amazed that the big players we have and rafa signed up for more of that shenanigans tbh.

IF and its a big IF they actually use the money to partially wipe out the swingeing loan then ... well then we will see if the actually are serious about doing things properly. I hope so for the good of the club. 40M a year in interest WITHOUT a new stadium will kill us eventually. It may well be that we can avoid selling off the players for the moment but it seems we cannot acquire that star player many think we need, not in todays silly market, Or at least we are hoping for a hitherto unseen largesse from our financially outgunned owners.

In any case perhaps it would be financially far more prudent to just gamble that we have enough and not sign anybody and instead pay off some debt. I think i'd prefer that tbh. As long as we finish top 4 we are reasonably safe in a business sense, winning it is possibly unrealistic without the addition of some quality depth to the squad but thats what happens when you fuck things up financially. Buy in Johnson sell two or three players and maybe promote some youth players, finish in the top 4 and get deep into the champions and in the meantime wipe out some debt so we get stronger financially...
 
I think this yanks have learned enough to know that their 'stewardship' will come under extreme pressure from the supporters if they tried to sell players to cover debts.
 
If we were at any financial risk and, as a result, our top targets were up for grabs, we wouldn't be spending £18M on Glen Johnson.

I'm no fan of the owners, but I hate how the speculation with regards to Masher, Xabi, and especially Torres is used as a battering ram against them.
 
[quote author=Farkmaster link=topic=34286.msg892701#msg892701 date=1245659415]
We aren't selling players yet, but if we are, its got fuck all to do with finances.
[/quote]

I take your point but it is slightly obtuse, selling a player is all about finances. A player may wish to leave for a number of reasons and it may well be that as of yet we do not need to sell, but if you own manager says the budget is limited and seemingly the club is struggling financially with "material concerns" or whatever the phrase was...

Maybe that would also make it more tempting to move to bigger club in a country with a more similar culture to your own, clubs which are filling themselves with the best players in the world while we can't. Fuck it be honest if you were Mascherano and Madrid wanted to build a new Galactico team... i would be interested.... especially if the missus was unhappy. Not specifically to do with money i grant you but it is because it's them who have it and us who dont. We cannot buy in your "ronaldos" of this world, we just can't, and players want to win things and they want to play for the biggest and the best. We are not that because we are financially hamstrung, Real, Barca, Man U and Chelsea are all pissing on us froma financial point of view and the players know that. It may well be that we have a great chance of winning it next year with United being so weakened, but Arsenal have their players back from Injury and Arsahvin from day one, Chelsea will buy big for certain, Fergy will always magic something out his ass he always does... We have a chance it's true but... the clubs being skint is not an incentive for a player to stay.

Luckily at the minute we have a few of the best players in the world, also luckily so far we have not been stripped like United have but it may well happen. Why would the owners be scared of the fan reaction? we've already seen that it aint nothing to be scared of, we are far too desperate for the title.
 
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