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RE: TOM HICKS LIKES FOOTBALL

I asked a financially aware, soccer-playing FrontBurnervian his thoughts on Hicks' Liverpool purchase. His cogent analysis after the jump.

I think that from a sports investment standpoint, it's a terrific move. The Old Line British major clubs -- here thinking mainly of ManU, Liverpool, Chelsea, Rangers, Hotspurs, Newcastle, Everton and Celtic -- have been principally managed either by hobbyists or unenlightened (and uninvested) professionals that have ignored the profit potential of these clubs. The economic goodwill associated with the Liverpool name in particular has been barely scratched. The Glazers have thoroughly opened everyone's eyes as to the revenue hike that ManU has been able to achieve during their 18 months of stewardship. Moreover, their experience has raised the level of debt funding that lenders have been willing to provide towards financing a bid: meaning that a Gillett/Hicks purchase might only require something like a $60 million buy-in for each principal. So, by way of analogy, the general state of the Premier League looks to me something like how the NFL appeared during the late 1980s, when new Young Turk owners such a Jerry Jones entered the fray. Accordingly, I think that Tom will do far better from a financial perspective in this overseas investment than will be proved by his involvement with the Rangers or Stars.

Adam McGill · February 1, 2007 12:38 PM