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Posts Tagged ‘stadium’

John W Henry bought into the ethos of the Red Sox and will do so at Liverpool, says Joe Sullivan, the Boston Globe’s sports editor

“When John W Henry and his New England Sports Ventures group took over the Boston Red Sox they were firmly established as a team that would always fall short of being a major force. Under Henry, however, they ended their 86-year wait for a championship in 2004 and are now recognised as a major, long-term threat. It has been a total transformation.

“This has largely been achieved through high investment, which can specifically be seen in the Red Sox’s payroll. It currently stands at somewhere close to $170m [£107m] a year, which is second only in the Major League to the New York Yankees. Big wages do not necessarily lead to a great team but it certainly shows a commitment to signing and keeping top players, which has been a hallmark of Henry’s time in Boston so far.

“Along with the money has come a respect of traditions. When Henry took over it appeared certain that Fenway Park, the Red Sox’s stadium, was destined for demolition. It opened in 1912 and by 2002, when the takeover happened, it was truly looking its age. But instead of knocking it down, Henry preserved Fenway Park and renovated it in a way that reflected its original appearance. All Red Sox fans will tell you that they love the aesthetics of the stadium – if anything they prefer it now to how it looked eight years ago.

“One issue they may have with Henry, though, is the cost of getting into the place. Ticket prices at Fenway Park are among the most expensive in the Major League, with the average cost being in the region of $45. Tickets to sit on the Green Monster, the 37ft wall located at the left field of the stadium, can reach $200. This has made it hard for the common man to go watch the Red Sox play now.

“Saying that, however, Fenway Park is sold out for most games. This is partly because the team are continuing to compete for the Championship and also because Henry has enhanced the fan-experience for those who can afford to attend. For instance, some roads around Fenway Park are closed to traffic on game-days so fans can walk to and from the stadium in comfort and, if they choose, hang out there and visit the food stalls and merchandise shops the new owners have built there. That is also part of Henry’s strategy to boost the Red Sox’s commercial activities, something which has been a success and generated much income, most of which has gone straight into the team.

“It is impossible to predict which aspects of his time in Boston Henry will repeat at Liverpool, but the supporters should hope it is as much as possible. They should also expect to see him at more matches than either Tom Hicks or George Gillett attended. Henry is not a Boston fan but has totally bought into the ethos of the team and can regularly be seen at Fenway Park, supporting them from his box. He will become a Liverpool supporter too, albeit a shy, quiet one.”

LiverpoolSachin Nakraniguardian.co.uk

• New chairman Martin Broughton offers support to Benítez
• Liverpool manager says he is wary of owners’ promises

Rafael Benítez gave only a cautious welcome yesterday to Tom Hicks’s and George Gillett’s commitment to sell Liverpool as he admitted experience had taught him to be wary of the co-owners’ promises.

Hicks and Gillett signalled the beginning of the end of their turbulent three-year reign by appointing the British Airways chairman, Martin Broughton, as Liverpool’s new independent chairman with a brief to oversee the sale of their entire stake with immediate effect.

Broughton announced his arrival by pledging money for new players and support for Benítez, who has endured a troubled season at Liverpool but is coveted by other clubs. “Rafa is a good manager, we want him to stay and he’s under contract to stay,” said the Liverpool chairman.

Benítez’s response was guarded, however. The manager declined to commit his long-term future to Anfield and admitted his outlook has not altered since he claimed he had taken the club as far as he can – without new investment – before the Europa League defeat of Benfica.

“You always have to be positive and believe things will improve, so it is good news and hopefully it will be true,” said Benítez. “My experience says it is better to wait and see what happens.” Asked if he felt more optimistic as a result of the co-owners’ intention to sell, he replied: “At this moment it is more or less the same [as before Benfica]. I have to be honest. My concern at the moment is whether Fernando Torres is fit or not and preparing the team for next week’s games against West Ham and Atlético Madrid.”

Broughton’s arrival does at least end the paralysis that has hindered major decision-making inside the Anfield boardroom since the business relationship between Hicks and Gillett fractured in late 2007. A new five-man board has been proposed – comprising Broughton, Hicks, Gillett, the managing director, Christian Purslow, and the commercial director, Ian Ayre – and the Americans have bought time for the sale with a six-month extension to their refinancing deal with RBS and Wachovia.

“The club has the full support of its existing bankers for this process and has financing in place which will fully support the club’s operations,” read a statement.

Barclays Capital has been appointed to conduct the search for new investment. The co-owners had previously employed two banks, Rothschild and Merrill Lynch, to find buyers for a partial share in Liverpool. It is anticipated a 100% sale will be far more attractive to investors and interest has been expressed from groups in India, China and the Middle East. Broughton is said to be confident of a deal in the coming months but there are no guarantees of a sale.

“There should be no popping of champagne corks just yet,” said a source close to the process. “A buyer has to be found for Liverpool first and the owners have to agree a deal.” A £110m offer for a 40% stake, from the Rhône Group, has been the only official offer so far and the deadline on that deal passed last week.

Broughton said: “What is best for the club is somebody or bodies to come in and build the new stadium, make sure that the club is properly financed and that there is enough money available to take the club forward. I have looked at the stadium project and frankly there is an overwhelming financial logic to any buyer to proceed with the stadium. Any buyer would be crazy not to do so and they won’t get to be the winning bid without the commitment to building the stadium. I think everybody concerned – fans, players and the manager – can all look forward to a very bright future.”

Without a swift deal Benítez’s transfer budget will consist of funds from the refinancing deal plus the sale of players such as Albert Riera and Yossi Benayoun. Hicks and Gillett value Liverpool at around £500m but whether they will lower their asking price remains a deciding factor. “Owning Liverpool Football Club over these past three years has been a rewarding and exciting experience for us and our families,” claimed the co-owners, whose tenure has resulted in mass protests outside Anfield and prompted security operations on their occasional visits to the stadium.

Rafael BenítezLiverpoolBusinessPremier LeagueAndy Hunterguardian.co.uk

• Christian Purslow dismisses suggestion as ‘preposterous’
• Managing director confirms hopes over new investors

Christian Purslow, the Liverpool managing director, has said Fernando Torres and Steven Gerrard will not be sold simply to service debt loaded on to the club by Tom Hicks and George Gillett. He also confirmed that a complete takeover of the Americans’ shareholding remains an option for potential investors at Anfield.

It has been another turbulent week for the Liverpool hierarchy, with Tom Hicks Jr resigning his position as a director following an email row with a fan. But Purslow issued assurances about the stalled stadium project and his ongoing search to attract investment as part of an equity raise demanded by the banks that granted Hicks Sr and Gillett their latest refinancing deal in July.

Liverpool’s manager, Rafael Benítez, who tonight signed the winger Maxi Rodríguez from Atlético Madrid without paying a transfer fee, has admitted an outlandish offer for Torres or Gerrard would be discussed by the Anfield board, but Purslow insisted: “The suggestion in any way that we would sell players in order to pay down debt or pay money to our owners is preposterous. Neither is true. Neither is possible. Any proceeds we generate from the sale of players can only go into our player account for the recruitment of new players.

“It’s in the public domain that the owners have been looking to bring new investors into the club to pay down the existing debts – which are today about £237m – by way of issuing new shares which would dilute their shareholding in the club. That process is ongoing. The debt we have today is obviously serviced by the club in terms of interest and bank fees and if we reduce our debt then clearly those interest charges and bank fees will reduce.”

Despite claims at the time of Liverpool’s successful application to be part of England’s 2018 World Cup bid that work on the club’s proposed new stadium could begin before April, Purslow admitted fresh investment must occur first. “The process of bringing in new investment and reducing our current debt will create a context whereby we can seriously get back on track the stadium project,” he said.

Hicks and Gillett intend to dilute their shareholding rather than sell up entirely and forgo any profits made once the stadium project is under way, but the managing director has conceded a complete takeover cannot be discounted in a limited market. Purslow added: “Provided all goes well, there is a serious possibility of new fresh investment. There are no guarantees – we are operating in an environment where, as everybody knows, it hasn’t been the most active investment market. But largely because of the quality of Liverpool Football Club, both as a club and as a business, we haven’t had problems in attracting interest.

“However, the devil is always in the detail and in the coming months our job is to get somebody over the line that makes sense for all concerned. That could be part ownership or it could be complete ownership.”

LiverpoolSteven GerrardFernando TorresPremier LeagueAndy Hunterguardian.co.uk