Thursday 29 October 2009

LFC - Time for Peace?

Damn it! I said I wasn't doing another football related post. This isn't an LFC blog and I'm pretty sure I must have other interesting things to write about. But here's how it works. Yesterday I'm driving wondering what my next blog post might be about - politics, business, drugs, celebrity and I can't think of anything. Then today something triggers in my mind and my head goes 'that's a good blog entry' and well... here we are!

I have come across a bit of an enigma. Last week I posted on the site www.liverpool-kop.com about a point of view expressed which was similar to my own first LFC post. I commented and linked to my own story saying I was going to write about LFC's debts.

The site is run by Jaimie Kanwar someone I have never met and our total correspondence comprises of a few emails and tweets. After writing my post Jaimie asked if he could re-post it to his own site. I agreed and managed to get an insight into what it's like to run a site like his. I have had to respond numerous times to criticism, questions etc. and read comments which were not too flattering about my work.

This led me to reviewing more of Jaimie and his other writers' work and I think it would be fair to say that he does not shy away from controversy. On reading some of the responses it was becoming clear to me that he may actually be 'The Stig'. Between some valid points, some rantings and responses you can almost hear Jezza Clarkson "some say he's actually a Manchester United fan, some say he's in it for the advertising money while some would say he's a wannabe editor for the daily sport. We all know him as the Stig!"

There are some who accuse Jaimie of just finding the latest big LFC news and then purposefully putting forward or posting the 'view of the few' to promote a reaction. How true this is I guess only he knows. One thing is sure - with headlines like the following, criticism is always going to be forthcoming:
  • Crouch for sale as Rafa's irrational vendetta continues
  • Manchester United debacle once again exposes Steven Gerrard's lack of leadership ability
  • Why Liverpool cannont and should not sign David Villa
  • Rafa suffering from Houllieresque delusion of blandeur
However it is fair to say that there are often positive posts on the site. In the stories I have read an attempt is also made to back up the views with some form of rationalisation, even if it is not always accepted. He does not shy away from 'flip flopping' either and is happy to change his view point at a later date. Does this suggest an open mind or back up the 'sensationalist seeking' point of view?

If he is indeed The Stig then I guess his Richard Brunstrom would be SoS (Spirit of Shankly) who oppose the current ownership of the club. SoS is the Liverpool supporters union which was formed in January 2008. They are opposed to the current ownership of the football club and have the stated aim of holding the owners of the club to account.

Now, I will state again that I am Hicks and Gillett (H&G) neutral. But at the same time I am a realist and the realism of the situation is where SoS' biggest weakness lies in my opinion. They may well have some valid concerns, some of which have been shared amongst the majority of Liverpool fans, but their options and powers are limited. The most valid of concerns is the level of debts leveraged against the club. As per my last post I don't believe we are in as bad a position as painted by the media and I personally am relaxed about the club's finances. However, it has to be accepted that an additional c.£300m of debt is around the clubs neck post H&G. This is big money and concern is therefore understandable.

But the owners are financially accountable to their backers (the banks) and cannot be forcefully deposed by anyone else. So when it comes to the fans well, what can we do? Most of the actions available to us (stop going to the games, stop buying from the club shop, arrange demonstrations) in some way will damage the financial and / or commercial success of the club. This is as unpalatable as finding another club, so we end up in stalemate.

Stalemate is also where Jaimie ends up in most of his 'comment wars' following his posts. Sometimes we just have to accept that we're not going to agree. While all the trying to 'grind each other down' to accept another point of view simply serves to further damage the unity of the club as a whole.

Let's get personal. Last week I smiled at my girlfriend (an Everton fan by the way) and she didn't like it so a short argument took place. Obvioulsy there is a bit more to it than that but you'll be bored. Anyway I went to play squash while she stewed at home. I came home to a lady fixed in her belief that she deserved an apology. It wasn't forthcoming. I sent out a warning shot that 'we're not just going to agree on this so we should just forget about it'. Not good enough. So she shouted, I shouted, she called me several names not befitting her 'lady' title, I threw some things, broke some things and then she ended up in tears. Five minutes of silence were followed by me 'breaking the ice' and we agreed that we weren't going to agree (like I said at the start). Life is like that sometimes. You just have to get on with things accepting that damage can be avoided if you 'agree to disagree'.

Back to the football and I may be about to offer a simplistic view but while other clubs are limited to arguing over who they should buy, yesterday's result and the referee's mistakes we're collectively adding major arguments about our ownership and the financial structuring of the club. To our sponsors and prospective commercial partners it must appear like their is dis-harmony throughout every level of our football club. Not appealing is it?

I will say again that H&G's public outbursts played out in the media were stupid. However, they appear to have learnt and are at least displaying some sort of harmony for the world. The fans are not.

In relation to the club itself there is a significant weakness which exacerbates the problems. They do not, in my opinion, communicate effectively with the fans about their intentions or plans. They shouldn't need to justify their actions or endanger any competitive advantage they are looking for. However the amount of misinformation could, in my opinion, be reduced if we knew the high level strategies of the company direct from the club. Fans need to know 'from the horses mouth' that our debts can be managed and that the club is progressing towards the global football powerhouse it should be. Pre H&G our accounts and business overview were available from the club website. They are not anymore. They can be downloaded from companies house but why do we have to go looking for them and how many people know that? Little things like this promote the idea of a club trying to hide something.

One of the questions I asked myself as I was posting responses to my last blog entry was 'why am I having to justify our debts?' I didn't have all of the information required and was making judgements which were weakened because of this.

So, my opinions for you to shout at this time....

  • Should the fans have an opportunity to hold the football clubs owners to account? Yes, we do hold the ultimate power over the club and company as we are their consumers. LFC need to recognise this and work with SoS - I have noted that Christian Purslow has met with SoS and intends to do so again.
  • Is the current situation damaging our club? Yes, disharmony within the fanbase is always going to cause questions to be asked. Whether the future commercial success of our club will be hampered is still to be determined. I am confident it is not helping our prospects though.
  • Could LFC communicate with us better? Yes, I believe they can. We don't need to know everything. But it strikes me that a lot of the speculation and misinformation could be dealt with if the club opened up a bit more. In the same way that Rafa is the focal point for the team Christian Purslow should push himself forward as the focal point for the company. He appears to have the support of most LFC fans.
  • Should everyone have the opportunity to have their say and put their opinions out there? Yes, of course - we do live in a democratic country.
  • Are the constant 'comment wars', speculation and media intensity doing us any good? No, we're not getting anywhere. We're having the same conversation over and over again. Go and look at Jaimie's posts in relation to H&G. In some cases they are as near to being repeated verbatim as you can get!
What would I suggest? Well I think the fans need to come together as one and agree that we are going to have 12 months of 'peace time'. During the next 12 months we come together in unity behind our great football club. God knows after yesterday's result we need it!

That is not to say we forget about things. But consider this. We agree 12 months of harmony throughout the club. In 12 months' time if the debt situation has worsened without clear justification from the club, or, other detrimental things have happened SoS or whoever else will have gained the moral high ground. They will then be in a much stronger position to convince a larger number of fans, thus having a larger influence over the club. Looking through posts on many LFC sites and forums there is evidence of a softening towards H&G and a hardening towards SoS. I could be wrong about it but on some of the posts I see I believe a wind of change is underway.

For clarity, my position -

  • I don't care who owns our club.
  • I care very much who runs it and that it is run well with an overall target of turning LFC into a 'global football powerhouse'.
  • I am pro Rafa and believe if he can be given the tools he needs he is the right man
  • I am realistic that without equity investment we need to borrow money to grow and achieve our targets. This is for the good of the club longer term.
  • I believe our debts (as per my last post) are not as bad as the other 'top 4'clubs.
  • I believe the press have a tendency to pick up on LFC stories. Why shouldn't they? We are a globally recognised football club, the most successful football club in history. We're going to be a target. While there isn't general unity at every level of the organisation, including the fans, we'll keep feeding them stories.
Finally and critically I believe we should have 12 months of 'peace time'. No demonstrations, quiet on the forum front, no shouting at our owners when they appear. In 12 months things will have improved or have worsened. Either way things will have 'crinkled out' and we the fans won't have damaged our club's future prospects.

6 comments:

robbohuyton said...

Disharmony among the fans there undoubtedly is and it's unfortunate. But I don't think for a minute it affects the image of the club one bit.

Why would any future investors care? The club has got a worldwide support, 26,000 season ticket holders and 40,000 on the waiting list. LFC are always on TV, merchandise and internet is worth millions. Let's be honest, that's all they are likely to care about.

I'm very anti Hicks and Gillett, and I'm a member of SOS, and while marches and banner waving may not be the most effective form of protesting, I'd rather do something to show I am not happy with their lies (we won't do a Glazer, we'll build you a stadium, we'll back the manager, we've spent £128m plus incomings on players etc etc) than just shrug my shoulders and say 'it's not that bad'.

mcdonaldtaf said...

Hi Robbo. I'm already following you on Twitter so I had the sense you were anti H&G.

From my own personal perspective I don't believe I am shrugging my shoulders. I have simply not been convinced that from a business perspective H&G have done anything too detrimental to our club. At the same time commercially the club appears to be moving forward. The problem with their 'lies' is that there appears to be a modicum of truth in everything.

As an example I asked someone today for a direct quote from H or G on the debts issue. The one he came back with was the one I had found (I have been looking) which stated "We have purchased the club with no debt on the club". From this the reporter had said it would not be a Glazer type deal. This is, as far as I can see, true. They started Kop Holdings and that company borrowed £250m to effect the purchase of LFC. To say the two companies are the same is not correct. My (incomplete) research to date has shown that as a subsidiary of Kop Holdings, LFC would not be liable for the parent company's debts should it go bust. (That is unless cross company guarantees have been given. I don't believe this is the case as subsequently LFC has had to take on £105m of the debt itself.) As an example of this look at http://bit.ly/1o3SUl

I'm not defending H&G I am just asking to be convinced that all of the disharmony is worth something. I'm afraid I believe it is affecting the image of our club. Our total turnover is behind all of the other top 4 clubs and any investor would need to know it will grow quickly. In my opinion LFC has always enjoyed the benefit of being perceived as a friendly and warm club (no doubt attracting 'outside' / foreign supporters). That appeal I believe is being tarnished as the supporters themselves are split up into disparate groups.

I may be from North Wales (don't hold that against me) but I am a life long supporter as are my family and as are my son and daughter (unless they want to live elsewhere).

robbohuyton said...

Everyone entitled to their own opinion and all that but what concerns me are things like:

"LFC’s accountants have also warned that remaining uncertainty over refinancing the £350m debt before the July 24 deadline may even “cast significant doubt on the group’s and parent company’s ability to continue as a going concern”.

As I posted in a mammoth piece about H&G on Sunday, if we have all got it so wrong, then why don't they put us right? It shouldn't need impromptu meetings with fans, they should communicate with us (something you alluded to yourself and I agree with you on that).

I've got to admit the whole thing makes my head spin, I'd rather be talking about football. But the other thing with them is their seeming inflexibility.

For example, in the summer just gone, why didn't they back Benitez to the hilt transfer-wise? It looked to me that we were a handful of top-class signings away from winning the league.

Sticking to this rigid £20m a season (minus contract renewals) etc is not the way football works. Benitez should be able to go to the board, make a case for more players (which surely he did in the summer) and they should push the boat out to provide the funds.

I don't get the impression that has ever been the case and in fact, there's strong evidence Rafa expected to sign at least one more player in the summer and the rug was pulled from under him by H&G.

I admire your vision of a united support by the way - the in-fighting annoys me too. But at the moment there's anti-Rafa v pro-Rafa, anti-H&G v pro-H&G - I just don't see it happening anytime soon.

mcdonaldtaf said...

Hey Robbo. Thanks for coming back.

Yes the statement was worrying but to the best of my knowledge resolved by the refinancing which was completed when H&G repaid £60m. I thought I read somewhere that they were looking to repay more, but I might have that wrong. Within there lies one of my problems. They were told they needed to refinance and they did by putting in £60m of their own money. Now yes it is only 20% of what was borrowed but they did it. It's things like that, amongst others which makes me need convincing further.

I actually suspect that the global downturn has hit H&G harder than we are aware, yet they still found the £60m when needed. Don't get me wrong they're still rich but I don't believe there liquid assets are as strong as they were when they bought the club. The credit crunch (no matter what anyone says) has also affected all businesses across the world which use loan finance. So no tens of millions available in the bank and a restriction on loan finance. You have to sit it out and ride the storm and keep the club solvent.

I am 100% with you on the communications thing, hence my mentioning it here. The club has to acknowledge that the fans are genuinely concerned about its plans. Truth be told I think they could deal with most of the issues relatively quickly if there is nothing to hide. I am hoping (after only receiving positive posts about him) that Christian Purslow already has this in mind.

I agree with the transfers. We need a better quality squad. I am adamant that our first team, when fit, can beat anyone on the world, but once injuries kick in we struggle. However, there needs to be a balancing act. We have considerably less turnover than the other top 4 and we need to ensure (unless there is additional equity investment) that the longer term financial stability of the club is not affected.

As I said above I just think 12 months won't kill anyone. In fact issues will be resolved or SoS will find themselves with more support and thus power. Particularly if they 'go public' with this intention. Imagine no (or very little) in-fighting for 12 months and the 12th man back together again stronger than ever in unity. I also think, now formed, that SoS has a role to play in the long term (even when things are going right). Maybe they can be the official communication channel?

But who am I? Hopefully someone who doesn't come across as an idealistic rambling idiot. You say you don't see it happening but if I can get 5 people to agree and they can get 5 etc.

robbohuyton said...

Have you got a blue beret on while you're typing this?! :-)

The only way this could work that I see is a combination of your points - H&G communicate, admit to being at the very least, misleading, put their intentions for the future on the table, and ask for some time.

If it was done in the right way - and in the politician-esque Purslow they have got just the man to do it - it could possibly lead to some uneasy peace for a while.

Purslow did say all the right things on Five Live and was very impressive. But I still can't help being suspicious as he is, after all, H&G's mouthpiece.

By the way, good luck with abstaining from writing about footie on your blog - now you've started, you'll stuggle to stop!

mcdonaldtaf said...

Ha ha, no. It would be red and I'd look like a gimp!

Yes it would appear that compromise is called for. I just hope we get there.

Christian Purslow appears to have garnered a lot of support. When you get that high in the Hierarchy, with that much power, you're no one's mouthpiece.

I probably won't stop I'm just determined not to go round in circles!

Let's hope for a good result tonight to release at least a bit of the pressure.

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