Saudi prince looks to buy 50 percent stake in British football club Liverpool

Saudi eyes 50 percent stake in Liverpool club

CAIRO — A Saudi prince wants to buy half of the debt-saddled football club Liverpool, in a deal worth up to $560 million that would mark the latest buy-in by Gulf investors in an English Premier League team.

Prince Faisal bin Fahd bin Abdullah al-Saud — who chairs Saudi holding company FAMA Group and the F6 sports investment firm — was quoted by the Saudi Al-Riyadh newspaper on Sunday as saying that “we are seeking, at present, to own a 50 percent stake in the club.”

“The value of the transaction, which is nearing resolution, will be between 200 million pounds ($320 million) and 350 million pounds ($560 million),” al-Saud was quoted as saying.

The comments come on the heels of a F6 statement released Saturday that said Prince Faisal had signed a memorandum of understanding with one of Liverpool’s American co-owners, George Gillett Jr., as well as Richard Petty Motorsports. That deal envisions in part setting up sports academies in the kingdom and the broader Gulf region.

Liverpool, which is owned by Gillett and Tom Hicks, is about 245 million pounds ($390 million) in debt.

The American co-owners have been working to bring down Liverpool’s debt,and the club’s managing director said earlier this month that the U.S. duo had paid 60 million pounds ($90 million) of the debt burden when the loan used to buy the club in 2007 expired in July.

Calls for comment from FAMA Group were referred to F6, which sent a general statement about the investment deal with Gillett.

If the deal with Prince Faisal goes through, it would mark the latest investment in one of Britain’s best-loved sports by investors from the oil-rich Gulf region.

Sheik Mansour bin Zayed Al Nahyan, a member of Abu Dhabi’s ruling family, bought Manchester City for an undisclosed sum a year ago, ending former Thai Prime Minister Thaksin Shinawatra’s control of the club.

The team has spent more than $200 million on new players since Sheik Mansour took over, raising hopes that the long underachieving club could move up in the English Premiership and grab a spot in the Champions League.

Sulaiman al-Fahim, the Emirati businessman who helped broker the Manchester City takeover for Sheik Mansour, has also taken control of his own Premier League team — Portsmouth.

Al-Fahim said he completed his takeover of the club last month, though not before the team was forced to sell several players to meet debt payments. Al-Fahim formerly headed an Abu Dhabi property company and hosted an “Apprentice”-style reality show in the Middle East.

The ruler of Dubai, Sheik Mohammed bin Rashid Al Maktoum, is also rumored to be interested in purchasing a top-tier European team, although no specific deal has surfaced.

Also, Dubai’s Emirates airline significantly boosted its name recognition in the Britain by negotiating a multiyear deal in 2004 worth more than 100 million pounds ($160 million) to attach its name to Premier League club Arsenal’s stadium.

The company’s ties with the club were strengthened earlier this year when Arsenal opened a football academy in Dubai.