It is no exaggeration to say we get several emails each day at thedubailife concerning the matter of DIC’s long and protracted bid for Liverpool Football Club. Liverpool fans are anxious to see their club be bankrolled by Dubai’s vast millions without any questions being asked so that they can once again compete with the likes of Manchester United and Real Madrid on a global scale. After the events of last week it would seem that Liverpool will struggle to compete with the likes of Manchester City let alone United or Real.

Unfortunately, there is no quick or easy answers to the whole DIC-Liverpool saga. Whilst we here at thedubailife have our ear to the ground, even we cannot see an end to this long-running affair until the relevant parties are willing to compromise.

Does DIC Need To Buy Liverpool?

Lets get something quite clear from the start, DIC DO NOT NEED TO BUY LIVERPOOL FOOTBALL CLUB! OWNING FOOTBALL CLUBS IN THE UK IS NOT A PROFITABLE BUSINESS! That stark reality needs to be realized for all concerned, Liverpool fans and Liverpool’s owners. DIC were derided and eventually rejected by Liverpool’s board because they had the temerity to conduct their negotiations from a business point of view. Ironically, the current owners have done nothing but conduct theirs in a similar vein. Owning football clubs is not easy. Roman Ambramovich has ploughed billions into Chelsea and for what return? Actually they’ve made huge losses. Likewise the Glazer’s will make very little profit after all their debts have been fully paid off. THERFORE DIC DO NOT NEED TO BUY LIVERPOOL FC.

Why are DIC interested then?

Liverpool is still perhaps one of the best supported clubs in the world. They already have the history that City or Chelsea would dearly love, the potential to sell and fill stadia that only the likes of Real/United/Barcelona could probably match. That potential makes them one of the most sought after lucrative clubs still left in England. It is that potential that has still allowed DIC to keep a vested interest and not pursue other clubs such as Newcastle or Aston Villa.

Why Won’t Hicks/Gillette Sell?

The bottom line is purely financial. They have not received an offer from DIC that would allow themselves to maximize their return. In the current climate they are seeking to offload the club for a value of what would appear to be more than £500m.

What Happens Next?

The ,000 question. Nothing happens. DIC do not need to buy and Hick and Gillette are desperate to sell at an over inflated price. The two do not at this moment in time seem compatible. However, it would seem that the American duo are fast running out of options and their belief that DIC/Dubai would buy at any cost is fast disappearing. DIC meanwhile are happy to play the long game. Since they were told by the club that they were interested in inviting Gillette to make a bid they have kept m ore than a vested interest. There has been continued dialogue between DIC and the club for almost 12 months and although they have failed to reach an agreement DIC/Dubai continues to wait in the wings hoping that the global conditions will drive Gillette and Hicks to sell.

Indeed, after the fiasco of refinancing their loan and debt to buy Liverpool in January 2008, they have now failed to meet the target of starting work on a stadium, which continues to spiral. Their next objective is to refinance the loan once more for another 12 month period in January 2009. That is by no means uncertain, given that they could put the entire debt onto the club then we could have to wait a couple of more years before Hicks and Gillette finally are forced out.

By then it could be too late and DIC/Dubai may have just gone elsewhere.

Related posts:

1. DIC Liverpool – The time is now
2. Will DIC Rescue Liverpool?
3. Gillett To Dump Hicks For DIC-Liverpool Link Up?
4. The Liverpool-Dubai Saga Rumbles On!
5. Liverpool FC & DIC – The Final Act?