Frying pan and fire?
The Spirit of Shankly are aware of credible reports that Liverpool Football Club may be subject to significant investment from the Rhone Group – an organisation described variously as an “investment vehicle” or “hedge fund”.
The suggested investment relates to the £100m investment that Christian Purslow has indicated was required by the Club’s current bankers Royal Bank of Scotland.
Although reports suggest that the investment is one of “equity” not “debt” the Spirit of Shankly are calling upon Christian Purslow to fully explain the details of any proposed investment before it is completed. We are particularly interested in answers to the following questions:
1 . Who exactly are these investors? What are their intentions, both in terms of further investment towards the stadium and team?
2. Any investor will seek a return – what return is being sought by Rhone in relation to its investment? Is it an annual payment based upon the amount of their investment and therefore just a replacement of expensive debt for more expensive debt even if described as “equity not debt”?
3. What are the practical implications of this potential investment for day to day management of the Club going forward? Who would be in control?
4. Other than the pressure the Club is under from RBS why would acceptance of this type of “investment” be better for LFC than remaining with RBS?
5. Can you confirm whether either Tom Hicks, George Gillett, any of their family or yourself have any connection with Rhone, its current or previous owners and managers, and if so what those connections are?
We have been here before. February 2007 and we had promises of no debt, and investment being good for the club. Look how that turned out! Once bitten, twice shy.