Liverpool FC has been the interest of foreign government buyouts before, the most picaresque one being Thaksin Shinawatra, the former Thai Prime Minister's offer in 2004.
The latest offer by the Dubai International Capital LLC (DIC), the investment arm of the Dubai government is very close to the due diligence process, with Liverpool account books being opened up for perusal in the next few weeks. Sameer Ansari, the head of the DIC has been talking to the Reds management, led by chairman David Moores, with an offer of 450 million pound ($890.9 million), that is very close to being accepted.
Under the deal, the DIC assumes 80 million pounds of Liverpool debt and the construction of a new 60,000 capacity stadium that will cost 200 million pounds. David Moores, the majority shareholder with 51.5% of Liverpool's equity valued the club at 170 million pounds.
With this deal going through, 7 Premiership clubs will pass into the hands of foreign owners. This year has been especially busy, with Aston Villa, Portsmouth, and West Ham already being bought out.
Since its formation in 2004, DIC has spent $5 billion on companies including U.K.-based Travelodge Hotels Ltd. and London waxwork museum owner Tussauds Group as the Dubai government seeks to lessen its reliance on oil-based industries.
The firm last year bought 2 percent of DaimlerChrysler AG for $1 billion and is raising $2 billion to buy stakes in the world's 500 biggest publicly traded companies.
DIC has a successful investment track record that reassured Liverpool CEO, Rick Parry of regular cash inflow to keep the club solvent and going through with its long term plans.
George Gillett, the Montreal Canadiens owner was the other serious contender for the Liverpool takeover but appears to have dropped out. From the looks of it all, this is a very clean deal with none of the wranglings of the West Ham or even the Aston Villa takeover, expected. The present Reds management is expected to keep their jobs which is reassuring to the club supporters. Indeed, most Liverpool fans seem delighted by the prospective buyout.