Why Liverpool Football Club Is a Bargain For £300m

A workman applies gold leaf to the Shankly gates outside Liverpool's Anfield stadium in Liverpool, northern England August 2, 2010. Chinese businessman Kenny Huang has launched a bid to acquire control of Premier League club Liverpool from its unpopular American owners, a source close to the deal said on Monday. REUTERS/Phil Noble (BRITAIN - Tags: SPORT SOCCER BUSINESS)

As Liverpool have gone 20 years without winning the top division, especially to a younger generation, the enormity of LFC has probably never seemed quite powerful as it does to those of us who grew up with the club as an imperious, all-conquering club who simply won everything.

It is testament to the legacy of those days that Liverpool, unlike many clubs who used to be very successful, they still have such enormous pulling power and is still supported worldwide. The fan base in Norway alone is phenomenal.

In the last few years they have had their good name dragged through the mud and tarnished the image of one of the legendary teams of world football. However, the power of LFC should not be under-estimated. It has a fiercely loyal fan base which can be relied on to turn up week after week, season after season. It is a special kind of sleeping giant that will rise again and when it does, the whole world will sit up and notice just as it did in the 70s and 80s.

With this in mind, the potential new owners are actually getting a bargain for £300 million. Hicks is probably right to think it undervalues it substantially because Liverpool is one of the few ailing clubs that have genuine potential to be a world power in the game again. They have the fans, the name, the history. It’s all waiting to happen and with the right investment and hands-on guidance, it can happen.

Liverpool FC is a unique football club; more like a religion to many than a mere sport. It badly wants and needs to be successful again. Any new owner that can deliver that will reap both the affectation of Merseyside but also huge profits too.

There is much investment need – not least a 60,000 capacity stadium to generate substantially more funds – and they would have no trouble selling it out every week. And it can’t all happen overnight but perhaps, with this weeks’ news, the darkest days are at last over and the light in the distance is that of a new dawn and not an on-rushing train.

The fact Hicks and Gillett have made such an almighty financial mess of the club should be no reflection on the club itself. A properly run, successful Liverpool is a licence to print money. It is one of the top marquees in world football, albeit with a few scuffs and scratches on her at the moment.

Editor’s Note: Johnny’s new book: “We Ate All The Pies: How Football Swallowed Britain Whole” has received the massive honour of being listed as one of William Hill’s Sports Book Of The Year 2010 – the biggest, most prestigious sports books prize in UK.

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9 thoughts on “Why Liverpool Football Club Is a Bargain For £300m”

  1. The situation you describe is much like a sports team here in the States that has an unyielding and loyal fan base that has been turned around in the last several years. The Boston Red Sox. I think Liverpool will be in good hands.

  2. You're right, Liverpool is probably worth more than £300m but, with the debt quickly climbing and loans about to be called in, nobody has time to find out its true value.

    Besides, I cannot be the only one with a huge smile on my face thinking about the fact that Hicks and Gillett are going to lose over £100m as a result of this sale. I slept like a baby when I found that out.

  3. I agree that Liverpool is a license to print money ... a few years down the road after considerable funds have been put into the team.

    For starters, the stadium issue needs to be resolved. That won't be cheap whether they renovate Anfield or move to Stanley Park. They also need to pump some money into the team to get the top four caliber again. That realistically means another four or five players of top quality.

    After you do those two things you can finally fully capitalize on an excellent fan base.

  4. Without the debt load LFC will be one of the most profitable clubs in world football...the Club's profits are huge but, have been overshadowed by the need to use those profits to make debt payments.

  5. Amazing that an article that Liverpool is a bargain at $300 million pounds doesn't mention their income or revenue or really any other exchange of money. Liverpool would be a good a bargain IF owning a top flight football club was a profitable venture, however it seems that most clubs are locked into a cycle of paying more and more for players to not slip in the rankings, so the sport is generally not profitable. Liverpool Football Club is not a license to print money.

  6. I do not think this article is right. Actually in today's football world , Liverpool is a very tricky and maybe even a poison chalice to the buyer. It has a has a huge tag for getting out of debt. Then starts the real problem - there is maybe a 500 million pound expense associated with taking this club to a dominating position - players and manager and stuff like that. This rebuilding will take at least 3 years with today's market. Then comes the building of the stadium - in short it will be a min 1.5 billion pound and 3 year of consistent and tiring effort to take this years of rot out of Liverpool. The initial payment is the start of the problem.

  7. For those of you who dont think football is a worht while investment, in particular liverpool fc. Check out this list, run properly you can make a hell of a lot of money out of football.



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