History of Liverpool F.C. - 2007 Takeover

2007 Takeover

In December 2006, Liverpool F.C. announced that the investment group DIC were considering buying out the club. They completed their due-diligence of the club and the offer of £450 million was convincing to the public that this was nearly a done-deal. Subsequently, George Gillett and Tom Hicks submitted an improved offer which saw Dubai Investment Capital pull out completely almost immediately afterwards. The Chief Executive of Liverpool Rick Parry, said the club "felt bullied" by DIC and did not want to make a decision to sell the club too quickly.

On 6 February 2007, George Gillett, owner of the Montreal Canadiens, and Tom Hicks, owner of the Dallas Stars and the Texas Rangers respectively, assumed control of Liverpool F.C. in a deal worth a reported £470 million. The Liverpool board of directors were unanimous and advised shareholders and Chairman David Moores (with his 51% stronghold) to accept the offer of £175 million. The deal also included £45 million of club debt and £215 million for the new stadium proposed for Stanley Park, with building expected to begin within 60 days. In the same press conference the new owners commented that the new stadium could sell naming-rights should it allow them added funds to bring in "one great player" a season. Commenting on the offer, George Gillett and Tom Hicks said: "Liverpool is a fantastic club with a remarkable history and a passionate fan base. We fully acknowledge and appreciate the unique heritage and rich history of Liverpool and intend to respect this heritage in the future. The Hicks family and the Gillett family are extremely excited about continuing the Club's legacy and tradition."

After the acquisition, Liverpool bought Fernando Torres, Yossi Benayoun, Ryan Babel, and numerous youth players. In November 2007, a public dispute arose between Liverpool manager, Rafa Benítez and club owners, Gillett and Hicks over transfer policy for the January 2008 transfer window. Hicks was quoted as saying that "It is really time for Rafa to quit talking about new players and to coach the players we have". In a subsequent press conference, Benítez used the reply "As always, I am focused on coaching and training my team." 15 times to a range of questions posed by journalists. Subsequent official club statements later confirmed that Tom Hicks and George Gillet were reluctant to commit to future transfer activity until later in the year, when the status of Liverpool's involvement in the UEFA Champions League had been resolved, and had therefore told Benítez to concentrate on coaching and training his existing pool of players.

On 22 January 2008 Liverpool fans, at the game between Liverpool and Aston Villa, protested against Gillett and Hicks' running of the club, and urged the pair to sell their shares in Liverpool F.C. to DIC. Neither owner, nor their representative Foster Gillett were present at the game. Subsequently, opposition to Hicks's ownership has started to become more structured, with groups emerging to campaign against them. Initially, Hicks stated that the entire incident was "a big misunderstanding blown out of all proportion" and that his relationship with Benítez could not be any better.

When he first purchased half of Liverpool F.C. Hicks stated that "Parry and Moores will have a continuing role, stability is a key to success." However, it was soon revealed that Hicks had requested for Rick Parry to hand in his resignation. Parry refused and this added more tension amongst the board members.