Football and Fashion |

Managing director of the Liverpool Football Club, Ian Ayre, said in a statement this week that the new infrastructure needed by the club is facing major challenges in its realization.  Liverpool needs significantly greater capacity for its fans in order to compete with Arsenal and Manchester United, whose gameday revenues are much higher.  However, Ayre said, there are so many problems with land  acquisition and planning and environmental regulations that the process is painfully slow.

Over the past few months it has become apparent that the expansion of Liverpool’s existing Anfield stadium to a 60,000 capacity would be preferable both in terms of cost and in long-term benefit to fans and players compared to the option of a new stadium to be built at Stanley Park.  Unfortunately, this course of action presents an array of difficulties, for reasons that some feel are just bureaucratic maneuverings.

The fact is that refurbishing and enlarging Anfield would involve a temporary reduction of facilities during the process, as well as costs for acquiring rights to the surrounding property and conforming to many of the City Council’s requirements for such construction.  If Liverpool could make a deal such as the one Manchester just announced with Etihad Airways, which is reported to be worth around £150m over the next 10 years, it would enable them to go with a new stadium.

Mr. Ayre has noted that Liverpool is in discussion with several brands about naming rights for a new stadium, but so far there has been no inclination to rename the old one.  At present the decision about which way to go on the issue has not been made, but the club is under pressure to make a committment one way or the other.  Ayre insisted in his recent statement that the goal is to find the “best possible long-term solution” for the team and its supporters.

The ownership troubles of the Liverpool Football Club have taken another twist as Peter Lim is stepping back into negotiations with an increased bid for the embattled team.  The billionaire Singapore businessman’s offer was originally overlooked in favour of a £300 million offer from the owners of the American baseball team the Boston Red Sox, NE Sports Ventures.  Now, Lim is back with a new offer.

The new offer may be of no avail since one of Liverpool’s major creditors, Royal Bank of Scotland, has gone to High Court to fight over who has the right to actually sell the Football Club.  IF RBS wins, the deal will go to the New England investors of Sports Ventures.

Lim, however, is countering with quite a deal.  First he will jump the offer to £320 million, all in cash.  Then, he will add £40 million for spending on players.  Such sums of money would pay off a £200 million acquisition debt, bank fees, and all of Liverpool’s existing debt.

The additional £40 million would be injected into the club so Roy Hodgson can get new players.  Lim says that he is committed to returning the Liverpool Football Club to the pinnacle of success.  He says that all the money is available immediately and that fact can keep the club from going under administration.

While his offer is generous and intriguing, it will probably have no bearing on the court case which is a fight between the club and investors George Gillett and Tom Hicks, who stand to lose £114 million if the Sports Ventures deal goes through.