Credit crunch hits US baseball, UK Premier League

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.

About Paul Hodges

Paul Hodges is Chairman of International eChem, trusted commercial advisers to the global chemical industry. He also serves as a Global Expert for the World Economic Forum. The aim of this blog is to share ideas about the influences that may shape the chemical industry and the global economy over the next 12 – 18 months. It looks behind today’s headlines, to understand what may happen next in critical areas such as oil prices, China and Emerging Markets, currencies, autos, housing, economic growth and the environment. Please do join me and share your thoughts. Between us, we will hopefully develop useful insights into the key factors that will drive the industry's future performance.

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One Response to Credit crunch hits US baseball, UK Premier League

  1. Rudy Muncy 26 February, 2010 at 1:28 pm #

    Interesting blog, as an expat Brit, now living in Argentina, this was especially interesting.

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