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Credit crunch hits US baseball, UK Premier League

Economic growth, Financial Events, Leverage
By Paul Hodges on 07-Apr-2009
Liverpool FC.jpg

Tom Hicks was a major player in private equity, but then moved on to sports investment via his Hicks Sports Group (HSG). He owns the US Texas Rangers baseball and Dallas Stars ice hockey franchises, as well as a 50% stake in the UK Premier League’s Liverpool FC.

Now The Guardian reports that HSG has missed $525m of payments on 3 separate loans, and soon needs to refinance a £350.5m Liverpool loan. Hicks has also confirmed he is searching for “partners that share my long-term vision”.

The blog noted in October that many major Premier League teams were loss-making due to excess leverage. Even Manchester United may be impacted. Its US owners seem set on selling Cristiano Ronaldo to Spain’s Real Madrid next month for £75m, to help pay their debts.