by Rupert Insider
In the past few days Duncan Oldham has used his Koptalk Komic Kuts website to inform us that the DIC takeover of LFC is moving faster than the club cares to admit in public and that there will be £200-£300 million for new players in the next couple of years with £20-£30 million in January, and that some of that has been earmarked for David Villa – up to £100 million – which is what Oldham says is his Valencia buy-out clause.
He also tells us that LFC is interested in the January purchase of several other players totting up to about £35 million between them. And January hasn’t even begun.
How does he know? He gets it, he says, from his contacts “in the corridors of Anfield”.
Exciting, isn’t it – even if the sums don’t add up? So exciting that his stories shot quickly to the top of News Now where they dominated for a total of 4 days last week.
As I reported on here, Rick Parry referred to the “wildly speculative stories” about money for transfers when he joined a BBC podcast last week. He said the DIC deal was not yet done. As a result he did not know what money would be available for players in the future and when it might be available. If and when he does get to know it would not be in the club’s interest to publicise its transfer budget.
(Rafa has also told us that he does not know what funds, if any, will be available in January or next summer. He is hopeful and has prepared a list of names. But a forward is not a priority for January).
But what does Parry know, he’s only the Executive Director of LFC speaking from his office at Anfield. He’s not one of the painters in the corridors who are Oldham’s main informants and he doesn’t have the credibility of the wife of the brother of a gateman at Melwood who gets on the blower to Oldham in his garden shed in Wallsend if something interesting happens at LFC. If you are regular reader here you know that even those comic characters are fictitious and that Oldham has no contacts at LFC whatsoever.
Yesterday the Daily Telegraph tolds us that they have seen an investment prospectus, circulated by DIC. They don’t tell us the date on it, but imply that it is current. It suggests that the deal was not done last week. The DIC are still talking to banks about borrowing two thirds of the money and still looking for other investors to join them. The document made no mention of a budget to buy new players. In fact it suggested that DIC intended to squeeze all the profits it could with a view to investors recovering as much as an average 25% over seven years which is when they intend to sell their investment.
I have not seen the document and so don’t know if it is genuine or current. But based on what the Telegraph reports I think there is another possible interpretation.
The prospectus does not say that DIC intends to sell LFC in seven years, but it uses that time frame to calculate the potential return on investment.
It is quite normal in investment prospectus to use time schedules like that. One would have to look at the detailed terms to see whether potential investors would be locked in for a specific period. More likely they would be free to dispose of their holdings whenever they wished, subject to the board’s approval of any prospective buyer, but may also be obliged to accept any offer accepted by the majority owners. It’s even possible that DIC would have the first option to buy-out minority shareholders or match any offer they received from third-parties.
It would also makes sense that investors would understand that a stadium would not produce those kinds of returns unless the club it housed was among the top four in the Premiere League and the top 16 in Europe. That would imply continued investment in players. I suspect that the DIC prospectus would have allowed for that even if the transfer budget was not itemised – for obvious reasons.
If this document is genuine I would suspect it is normal preliminary process whereby DIC may be testing for the availability of both equity and debt financing in support of a potential bid.
EDIT: Several hours after I wrote and posted the above, the Press Association reported that D.I.C rubbished the Telegraph interpretation. D.I.C denied that itsproposed involvement was short-term and that it did not have a budget for team improvement. It emphasised that the best available funding would be available. See my full report and comments.
Are you one of those who clicked Oldham’s Koptalk Komic Kuts headlines and the process put advertisers money in the pockets of this unfunny comedian?
We have warned our readers several times about his false and misleading headlines on News Now. He is so dependent on the transfer windows to generate cash for his Mercedes upgrade and his other goodies, that if there is no genuine news he needs to invent it – and he does.
You are his intended mark. You can thwart him by refusing to click on any Koptalk headlines on News Now. But if you can’t avoid the temptation, or don’t notice that Koptalk is the source, at least don’t send him £30 for more bullshit information, or any money at all for fake LFC memorabilia or for dodgy charity appeals.
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