Gillett and Hicks go head-to-head over club
The Anfield co-owners are still both trying to sell each other's
half of the club.
Prince Faisal bin fahad bin Abdullah al Saud attended
yesterday's 6-1 thrashing of Hull as a guest of Gillett and was
even taken into the dressing room to meet the team.
Although he was aware of the Saudis' attendance, Hicks was not
part of any of the discussions with or invitations to the Prince,
who claims he will negotiate for as much as 50 per cent of the
club.
Sources close to Gillett insist the Prince's visit was primarily
about setting up Liverpool FC Academies in the Middle East, playing
down the guest's investment talk.
But Sport of the World understands the invitation is part of
ongoing efforts by the co-owners to oust the other from the Anfield
boardroom. The pair are pursuing new co-investors separately.
Prince Faisal, who was flanked by three bodyguards in the
Directors' Box, is chief executive of F6, a marketing and
investment company in Saudi Arabia.
He is the latest in a series of potential investors
invited to Anfield. His primary interest is in sports such as
powerboat racing. He is president of Saudi Water Sports Federation
and has shown little previous interest in
football.
Ironically, Hicks has appointed financial advisors Merrill Lynch
to seek millions from Saudi Arabia and across the Middle East.
Again, he has acted independently from Gillett.
Gillett is currently in a stronger financial position than his
co-owner, having sold the Montreal Canadians ice hockey side for
around £360m. Hicks has consistently flexed more muscle in his
boardroom power struggles.
He has overseen the appointment of managing director Christian
Purslow, forced through the five-year extension to Rafa Benitez's
contract and the departure of ex-chief executive Rick
Parry.
Last year, owners of the Delhi Daredevils Indian Premier League
club were wined and dined by Hicks.
Leaked documents compiled by Merrill Lynch and sent to potential
investors last March underline why Liverpool are still desperate
for investment.
Until they raise the funds to build the new stadium on Stanley
Park, the club will continue to lose as much as £55m per year in
matchday income.
Despite this, manager Benitez has been assured a £100m kitty
over the next five years, providing Liverpool consistently reach
the last 16 of the Champions League.
Qualifying for the group stages of the competition has long been
Benitez's minimum requirement to raise funds.
But he must ensure Liverpool are in the knockout stages every
season until 2014 to preserve his current £20m-a-year net spend.
The club's ambitious budgeting is a consequence of Benitez
achieving this goal in every season since his arrival.
Liverpool have failed to progress into the quarter-finals just
once since his move to Merseyside in 2004.
And a win over Fiorentina in Italy in midweek would go a long
way to securing a safe passage this season, too, preserving his
spending power next summer.
The transfer vow, although heavily incentivised through on-field
performance, is partially reassuring to Kop fans, especially as
this figure will grow if Liverpool reach the later stages or win
the competition.
The co-owners insist they have outspent Arsenal and
Manchester United since taking over Liverpool.
Both Hicks and Gillett are increasingly hitting back at
claims they have failed to invest in the team since their
controversial takeover three years ago.
Sources close to the duo say they are baffled at the
unfavourable financial comparisons with Arsenal and Manchester
United, who they insist they have outspent since taking over
Liverpool.
The club's own study into transfer activity revealed how, up
until the end of last season, the Merseysiders had splashed out
£205.3m on players since 2004, recouping £98.75m from
sales.
That figure does not take into account an estimated £10m
invested on youth players over the same period.
Fans desperate for the Americans to sell their stake have warned
about the club becoming the next Leeds United, but club insiders
dismiss those fears.
Gillett was confronted by angry fans at Liverpool's Academy
yesterday morning, when he launched a stern defence of his role at
the club and refuted claims of financial instability.
A Kop source told Sport of the World: "It's nonsense to suggest
Liverpool is going the same way as Leeds.
"The documents leaked are out of date. They were written last
November and don't take into account the refinancing last summer or
the record sponsorship deal we've just completed, but you can see
how prudent the club is being.
"We are not spending above our means and the targets set were
based on the last five years' income.
"A net spend of £20m per season compares favourably with our top
four rivals. You only have to look at what Liverpool, Arsenal and
Manchester United have spent over the same period to see
that."
However, the latest developments underline how fragile the
recent truces are. And there could be further divisions ahead over
the appointment of a new chief executive.
Gillett is anticipating a shortlist for Parry's replacement to
be drawn up as early as next week and sees Purslow's role as merely
transitional.
The managing director has been commuting from London twice a
week since joining the club, although his exceptional performance
so far means he is likely to take a broader, long-term role.
