Dubai's Liverpool bid on the rocks

ON ROCKS: DIC's bid to buy into Liverpool appeared to have hit the rocks on Monday after Hicks announced he had terminated negotiations. (Getty Images)

Dubai's bid to buy into Liverpool FC appeared to have hit the rocks on Monday after the club's co-owner Tom Hicks announced he had terminated negotiations with Dubai International Capital (DIC).

In a statement, Hicks said that discussions between his representatives and DIC in Dubai earlier in the day had led him to decide "to terminate any further discussions with DIC regarding their possible purchase of a minority stake" in Liverpool.

"DIC made it clear that if they invested in the club, they would want it to be managed by committee," he said.

"Based on my 13 years of successful experience as an owner of professional sports teams, and based in particular on the situation at Liverpool Football Club over the past year, it is clear to me that such a committee approach would not be in the best interest of Kop, of the club or of the club's loyal and passionate supporters."

Kop is the holding company set up by Hicks and his fellow American co-owner George Gillett.

"Accordingly, I have decided to exercise my right under the Kop Football Limited partnership agreement to veto any sale of any portion of Kop and the club to DIC," Hicks continued.

"I and my colleagues and representatives will continue to explore a number of other options with regard to the ownership of Kop and the club aimed at achieving an appropriate ownership, financial and organisational structure for Kop and the club over the long term."

The announcement came just hours after DIC confirmed it was in "advanced" discussions with Hicks, whose partner and co-owner George Gillett had signalled a willingness to sell his 50% holding.

Under the terms of the accord under which they acquired Liverpool however, Gillett was unable to sell without the agreement of Hicks.

DIC, which had been involved in lengthy negotiations with Liverpool about a takeover at the time Gillett and Hicks took control, said last week that the Americans' were in "dreamland" over the valuation of the club - a stance which may have affected the subsequent evolution of negotiations.

Gillett and Hicks have proved extremely unpopular with Liverpool fans, many of whom were enraged when the latter revealed late last year that they had discussed replacing manager Rafael Benitez with Jurgen Klinsmann.

Hicks has since given Benitez his unequivocal backing but that has not quelled discontent among supporters, many of whom are involved in a project aimed at buying the club back and running it as a kind of cooperative on the model of Barcelona, where the club president is directly elected by fans.

Gillett agrees to sell Liverpool stake to Dubai
Co-owner to sell 49% of football club for estimated $343mn, lead negotiator says.

DIC denies Liverpool deal sealed
Dubai International Capital does confirm it is in 'advanced discussions' with US co-owners.

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