Liverpool FC supporters closer to share issue
A Liverpool FC supporters’ group that has hatched a plan to buy a stake in the club says it is preparing to sell shares in an acquisition vehicle.
ShareLiverpoolFC’s (SLFC) scheme depends on thousands of fans committing to shares and loan stock, while also securing the backing of a commercial partner. So far around 35,000 fans have indicated they could invest £40m.
It says it has now raised the funds required to underwrite the costs of organising and delivering a full share issue. The club’s American owners George Gillett and Tom Hicks are now seeking a buyer as a repayment deadline on debts of around £240m looms.
Dr Rogan Taylor, a founder member of ShareLiverpoolFC, said: “The ShareLiverpoolFC board will now look to specify a date for a share issue later this summer. This is a serious and rigorously professional undertaking and we believe our core aspiration is both desirable and deliverable. This is our time. It presents the best – and perhaps the only chance – of fans gaining control or at the very least a significant equity stake in the club they love and support.”
The group, which is supported by former Liverpool players John Aldridge and John Barnes, said the aim is for Liverpool to emulate the model of successful European clubs like Bayern Munich where fans own 80% of the club. In preparation for a share offer a financial advisory committee has been appointed and people with experience in corporate finance are being brought on to the board.
In September SLFC told TheBusinessDesk it hoped to raise around £10m by selling £500 shares in SLFC on a one person one share basis. A further £140m would come from shareholding fans acquiring SLFC loan stock giving a return of 2% a year. In addition, they are seeking a commercial partner to invest around £100m.
Under the plan any existing debt would be exchanged for convertible loan stock in Liverpool FC, which SLFC would have rights to acquire from the banks over a 20-year term. If the bid is unsuccessfull investors’ money will be returned.
