Kenny Huang
The internet’s made rumors and reporting like this appear unescapable, so who are we to attempt a futile resistance? That ubiquitous source known as “reports” is saying that Chinese tycoon Kenny Huang is in talks with the Royal Bank of Scotland regarding a full takeover of Liverpool FC.
We’ve heard such chatter before, but this seems a little different. For one, Huang isn’t being dumb enough to get tangled up with Tom Hicks and George Gillett. Talking to the bank, and perhaps chairman Martin Broughton, is smart because it’s the only way anything will get done towards a sale of the club.
The Americans have danced and flirted with minority partners and possible suitors in the past, giving them all the run-around with their inflated valuations of the club and their unwillingness to part with their ownership.
Huang’s been linked to a buyout in the past—his name surfaced two years ago in takeover talks—but these nebulous reports suggest that he’s eager to get a deal completed before the end of August so Roy Hodgson can have some funds to spend on transfers.
This morning, things appear to have intensified, though Gillett is stalling by claiming “advanced negotiations” with Syrian businessman and ex-soccer player Yahya Kirdi. You see, the big thing about Huang’s deal is that H&G would make not a penny in profit—they currently value the club around £600m despite dumping £230m+ of debt on top—though Huang’s advantage is in the fine print of whatever refinancing deal the Americans hurriedly signed last year with the Royal Bank of Scotland.
It’s not fun reading for H&G, who’ve been the least cooperative sellers since stating that they were eager to sell: “As a condition of the refinancing deal put in place this year — which coincided with the appointment of Martin Broughton as Liverpool’s chairman — RBS can take control of the sale and negotiate a deal should they feel such action represents the best course to repay their loan and secure the sale of the club.”
Whoops, H&G. Should have paid attention to that portion way back when.
Liverpool sites have already gone through the well-worn rituals of hope and expectation that the end of H&G’s reign is almost upon us, talking up Huang and what his ownership might do for the team, and I don’t blame them one bit. I’ll be indulging my own routines—invoking the kind deities who smile upon this sort of thing, rain dances, prayer, the whole nine yards. The biggest point of note is that if RBS do indeed hijack the sale process in order to do business with Huang, it still needs to go through the LFC board for approval, and that could be a real bloodbath. You’d think that the bulk of the board would be exhausted with Hicks & Gillett by now, though there’s no telling how many H&G yes men currently fill the cushioned seats.
Perhaps the sweetest point of all if Huang’s takeover does go through is that it will leave Manchester United as being the only EPL club still run by a couple of insane, delusional, corrupted, greedy Americans.
My understanding is Hicks has been a real assbag regarding the sale of the Texas Rangers, too. If something like this gets pushed through, that’d be fun.
@Dan
He seems to be a dick about selling anything despite knowing that he’s run out of time to play boss. Huang’s at least clever enough to circumvent him and go direct to the bank that holds the bulk of LFC’s debt, as they can force a sale and remove Hicks’ tantrums from the equation. Still has to go through the board for approval though… that’s the scary part.
15% owner of the Cavaliers too. So he can bring that brand of winning experience to Liverpool.
James – It’s a clever move, but trying to force a sale via a bank or creditor controlled process is going to be very messy indeed. Not to mention lengthy. If you thought limbo was bad last year, it could get worse
@Ryan
Remind me what Sheikh Mansour has won…
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@Ian
Good point.
The Aaron’s International Soccer Challenge of course. Just last week. How quickly we forget…
From a background piece on this guy: “Early this year, Huang bought a 15% stake in the Cleveland Cavaliers leading to speculation in the US that Yao Ming will link up at Cleveland with NBA all-star Lebron James.”
Doh.
Also, Huang never actually bought any of the Cavs. So there’s that.
http://www.news-herald.com/articles/2010/06/29/sports/nh2711077.txt
Hmm… According to SI today “he negotiated the purchase of a 15 percent stake in the Cleveland Cavaliers in May 2009″.
And it looks like the deal went through, pending the approval of the NBA, back in May of last year.
http://www.nytimes.com/2009/05/26/sports/basketball/26nba.html
I’m confused where the truth lies.
If Huang goes through RBS rather than through Stadler & Waldorf, does this also circumvent the “proper persons” rules re: ownership, or is it the same test regardless?
If Thaksin Shinawatra could pass the Fit and Proper Persons test; I would suspect this guy could pass it.
We all know the FaPP test is rubbish anyway. See: County, Notts
Huang To Buy Liverpool?
That girl from Old School sure has moved up in the world quickly.
Whoa, Megan Huang from Old School is a doctor now.
http://en.wikipedia.org/wiki/Sara_Tanaka
“Perhaps the sweetest point of all if Huang’s takeover does go through is that it will leave Manchester United as being the only EPL club still run by a couple of insane, delusional, corrupted, greedy Americans.”
What about Randy Lerner at Villa? Not insane or greedy, compared to H&G or the Glazers, but still American.
@Josh: Yeah, I saw that too. I was wondering if JT was giving United fans some stick for being left in the exclusive corrupt owners club or if it was a thinly veiled jibe at us ‘Mericans.
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Assuming that JT is (a) wise enough not to alienate his main constituency and (b) recalls such lovable Englishers as Kuddly Ken Bates and Fat Freddy Shepherd, Mike Ashley, or even his own David Moores who sold up to H&G in the first place, thereby lining his own pockets and strangling LFC in the process, I have to go with “giving United fans stick.”
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If he’s implying that all Americans are greedy and corrupt, we can hunt him down, and educate him with tar and feathers, drawing and quartering, and other fun Revolutionary lesson-teaching techniques.
/Don’t Tread on Me, etc.
@Josh @Wedel
It was a jibe against The Glazers. There are plenty of good American owners, like Lerner at Villa. Even Ellis at Sunderland. The thought of removing H&G would simply leave the Glazers alone as the example of bad ownership.
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Also, don’t forget that I live in the US, work in the US, and am engaged to an American. Merely a bit of fun on my part. So don’t tread on me either!
@JT: I know, I know. I was just seeing how fast you’d respond. You’re a good ‘un. 3 minutes, not bad!
@Wedel
If only you knew the half of it…
Well right, of course, that’s caveated with “for a Liverpool supporter.”
And for the first time ever, someone associated with Liverpool will be Huang.