Tuesday, October 12, 2010

A Singaporean Bid

Days after I posted that I don’t understand why New England Sports Ventures (NESV) would want to takeover English Premier League club Liverpool, news has come out that a Singaporean billionaire is set to make an improved offer for Liverpool.

Singaporean Mr. Peter Lim, who is worth about $1.5 billion, has matched the $476 million being offered by NESV but reports say his bid had already been rejected by Liverpool. Whether or not Mr. Peter Lim managed to buy Liverpool, you can’t miss the feeling of pride of Singaporeans that one of their own is trying to buy a storied club like Liverpool. However this may be false pride because my problem with Liverpool remains the same; why would anyone want to buy Liverpool at this point of time?

Liverpool has debts about $453 million, they are in the relegation zone in the English Premier League (EPL) and one of the co-owners, George Gillett Jr., has defaulted on a $75 million loan from American hedge fund Mill Financial. This means Liverpool is in real danger of going into financial administration, which also means a 9 points deduction in the EPL!

So with all these problems, why would anyone (even a Singaporean) want to buy Liverpool?


Anonymous said...

The answer lies with the same traders in the SWF in Singapore who placed their 'bets' and lost billions of Singaporeans money.

Some traders just have the mentality of 'hoping for the best'. Perhaps, just perhaps, Peter do not know what to do with his money, lying dormant in his bank account.

Ghost said...

Mr. Peter Lim is worth about $1.5 billion, and his total bid for Liverpool is above $700 million. That's half his assets. He better know what he is doing.