Liverpool Message Board
Lfc have officially announced that the club have received two satisfactory bids that are financially superb for the club, new directors are being appointed as we await legal issues. Sky sports news are rumouring that one party is the red sox!
Sure, I'll do my best, and forgive me if my assumption insults you or anyone, but I presume Baseball is not largely followed in the UK? For argument's sake I'll assume so, but I will also assume you've heard of the New York Yankees, the most successful franchise in all professional sports with 27 championships. If, this sale does go through to the Boston Red Sox Ownership, it's a bittersweet kick in the groin for me as I am a lifelong Yankees fan and we hate Boston Red Sox, similar to our love for Liverpool (Yankees) and hatred for Manchester United (Red Sox), however, in this instance, I am putting that to the side, as we are discussing 2 different sports, cultures and business models and the potential saviour of our club!
The Red Sox are the 2nd most valuable Major League Baseball Franchise, trailing only the Yankees, with a current net worth of $870 million US. Their growth this year is estimated 4%, on par from the year before, and the year before that. Their revenues this past season are estimated at $246 million dollars, based on ticket sales, merchandising, tv, endorsements etc. And, the most telling statistic is, this year, their operating income was approximately $40 million dollars, the highest in baseball, $16 million more than my beloved Yankees, who are one of the richest teams in all the world. They operate at such a margin because they have an extremely strong front office, comprised of an owner and advisors who have been part of the team for years, and they involve 1 man who is considered the youngest/brightest mind in the game to run the day to day player/team operations (similar to Christian Purslow), Theo Epstein and he was named GM at 32 years old!
Since his appointment, the Red Sox have won 2 championships in recent years, and consistently challenge the Yankees for the division title (which is like winning your group in Europe and advancing right to the CL finals), resembling the way Chelsea and Man United compete. The Red Sox are built with a strong core of some high paid players, veterans/youth, they make great signings of foreign players from Japan, and South America without paying over their worth, and they have perhaps the strongest farm systems (youth/reserves) in the game. Each year, they bring up at least 1-2 extremely talented young players who go right into the lineup and perform in the highest pressure situations. They're built on toughness, a strict system similar to what Sir Alex does, they buy when they need to, in a controlled manner and are almost always spot on in finding the players they need to contribute to what the team does. They play with a very loose, free spirit and often seem as if they are winning and playing for fun. (During their World Series Championship in 2004, which was their first in 86 years, the players all admitted to drinking Tequila before each game to loosen up and as a sign of team unity).
They have played at Fenway Park since the 1920's, one of the most historical venues in all of sports, and rather than knock it down and build a new, they continue to upgrade, add seasts/boxes to keep the history and charm, while allowing for more fans/sponsors to generate more revenue. Bottom line, I hate the Red Sox as my rival, but they operate above and beyond in the "green" and have perhaps the strongest internal business model, and on field approach in the game. They were ravaged by injuries to many of their best players this entire season and still finished with the 4th best record of 32 teams. Top to bottom they are second only to the Yankees by way of them being so rich and having 27 World Championships. The owner John Henry is considered one of the best owners in American Sports, owning multiple sporting enterprises and businesses, with a personal net worth estimated at $860 million. http://en.wikipedia.org/wiki/John_W._Henry
As of 2 am my time, from what I am seeing and hearing in the news, New England Sports Ventures, run by John Henry the principle owner of the Boston Red Sox has had his bid accepted by Liverpool and his first order of business is to try and meet the deadline set by RBS and pay off the entire debt owed, which would in turn force out Hicks and Gillette almost regardless of what legal actions they try to take. The RBS do not want to take over the club and want the debt cleared, so the fact that Henry has made the bid and is willing to pay this debt, that has nothing to do with him, nor created by him says something positive.
I cannot promise anything, but I can tell you that Henry is considered amongst the top owners and most respected business men / sports owners in America. He helped take over and turn around the Boston Red Sox and won them a championship in 2004, their first in 86 years.
Interesting to see how this will play out, but the most important and fundamental thing to consider is that without clearing the debt which is rapidly approaching a deadline, the club cannot go forward, but only go down, so John Henry is attempting to raise the ship.
- 1 Reply to OLD DOG
The only thing I can tell you, is that Henry has all the financial means to clear the debt and help raise the club in the right direction as he did with the Boston Red Sox. They were an average team going nowhere, and he has brought them 2 titles in 5 years.
It is said that the person who will be chosen to purchase the club will not be allowed to do so with intent on purchasing on the cheap and that they must have the means to help with the debt, which Henry is said to be ready to do, and the requirements by Broughton, Purslow and Ayre are that the buying party must be commited to moving forward with kick starting the stadium, so based on that he has met the first main 2 criteria needed. The third, obviously the one we all want to hear is that he will make billions available for players, however, that information is not being given yet as the debt will be cleared first, then the stadium situation evaluated.
It is said that the person who will take over is looking at a 1 billion pound investment to turn everything about the club around, debt, stadium and players. Henry and his American Sports ventures are extremely successful and have the funds needed, so if Broughton Purslow and Ayre have in fact agreed and chosen him, I think in due time we will hear more about player investments. For now, I can understand them taking it 1 step at a time.. debt first, the 2 yank liars out. I understand and have some skepticism myself, but it must be said that he is a good man, and it will be nice to see hicks and gillette see their way out the door...
I have not heard or read anything over here to suggest that, and that Liverpool are in a very healthy, solvent financial state as far as cash flow is concerned.
My understanding is that administration would only take place if RBS seized control of the club, had to default on the money owed by the club or could not find a party to pay it off.
Based on the news I'm hearing as it's all but concluded that John Henry will be the new owner, and immediately pay off the debt, that shouldn't be a concern. The only way aside from that is if those 2 bastards find a way to drag out legal proceedings beyond the 15th preventing the sale to go through out of spite alone, and RBS lose patiences with the entire situation..
I'm just going by what news is being provided to me, as it is beginning to make majore headlines all over here in US, which is extremely rare
Jason your 3rd paragraph said it all, The head of BBC financial affairs has said that the greedy two will try to drag out legal proccedings (which would not be benificial to them) as it would mean that they would walk away with nothing! but they are greedy, and desperate, and likely to do some crazy things befor they are finally gone! As i say we are not out of the woods yet, but we can see some light between the Trees.
Jason, I used to live in Boston for a few years and love the Red Sox (not quite as much as my love for LFC). I can still remember the joy when Red Sox came back from 0-3 to beat your beloved Evil Empire. It was very much like when Liverpool came back to beat AC Milan in Champions League.
So Jason, guess I'll have to hate you. Well, not really, you love Liverpool so I don't hate you. Just pls don't compare Man Utd with Red Sox and I won't compare how evil both Man Utd and the Yankees are. lol
Let's hope the deal go through and those greedy douchebags fcuk off asap.
The noises coming out suggest Hicks and Gillets legal attack is going to come to no fruit but its going to be niggling in the background for some time. The New England guys havent gone for huge bulk investment at The Red Sox but have been clever and progressive with team building.
Most of us are aware that the one thing the yanks did well for us was improve our marketing and that now means with no debts to service we can produce £59m per season (as it stands) toward squad investment without a sugar daddy. That spells 2-3 top, top players a season.
Just a quick note that I read somewhere (I can't find the article again, I'll re-post if I find it) that in '08 Henry enraged the sox fans with plans to raise ticket prices by 200% and also had plans to change the kit. I gather the wealth of opposition stopped him.
I just hope we get the right owners in. Ticket prices should remain competative for the market (as at the moment) and the commercial side of Liverpool should be further enhanced to enhance the revenue stream.
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