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Tom Hicks And His Accomplices Pulled The Wool Over Everyone’s Eyes !
By tophat | March 4, 2008
Well there’s the belief that when an owner takes delivery of a purchase. He not only has a fiduciary duty to his partners but also the fans of the franchise purchased. Especially so when it’s within the field of sports. Tom Hicks the owner of major league ballclub the Texas Rangers along his with his syndicate of business partners has seen fit to purchase also a Premiership soccer club in the United Kingdom. The club in question is Liverpool FC. Over its existence prior to Hicks’ purchase it had been owned by the Moores’ family. And throughout that tenure it had known unprecedented success. Hicks for his part upon purchasing the club for $500m including suboordinated debt, had stated that it was his intent to see the club flourish and be successful in all aspects of the game. Not just on the field but off it also , particularly being active within the community.
This had been one of the cornerstones behind the team’s success within the city of Liverpool. It garnered much of its fan base locally and talentwise the team’s youth team was littered with players born and bred locally. Say nothing of which they were the pride of Anfield.
Hicks in the foreground along patner Ken Gillett seen in the background walking within the halls of Liverpool FC. picture courtesy of ap/photos….
Hicks as owner of the Rangers has a been an owner that has squandered much of the goodwill built up within the state of Texas. And over the years we’ve seen the team languished in the depths of mediocrity. It was under his tenure that the audacious signing of Alex Rodriguez was made. Having left the Mariners for what was allegedly greener pastures and the chance of real success. The team signed Alex Rodriguez to a 10 year $252m contract and the rest as they say is ………..history. One can say that while he was there in Texas he was productive for the team. But as to the team’s overal productivity it can be best be described as being woefully inadequate. Rodriguez wasn’t even surrounded with a team that could be described as being marginally talented. If nothing else it was a testament to his patience in staying there and having to endure all of those seasons of mediocrity. But on the face of it that might well have been down to just sheer greed on Rodriguez’s path. It’s still to this day remains the largest contract signed in the history of sports. It ought to be left up to the public and fans at large to say whether or not it was lived up to by Rodriguez over the time spent there.
Rafael Benitez and one of the numerous trophies(Champions League) that the club has garnered over the course of their illustrious existence. picture courtesy of images yahoo.com/sports/soccer/epl/liverpool……
He left the Rangers under something of a cloud and allegations of him all about his own self preservation and lacking the will to be an amiable let alone amenable teammate. It may well just be pure speculation on the path of many as there was great dislike of a player who many felt was being overpaid for his services whilst in Texas.
Alex Rodriguez seen here as a player for the Texas Rangers. picture courtesy of espn.com/mlb/texasrangers/Alex Rodriguez …..
Rodriguez’s departure to the New York Yankees must’ve been something of a godsend for the Rangers not just financially but also as a means to an end for Hicks and partner Ken Gillett. Their syndicate was hemorrhaging money and they were in a position where they couldn’t carry on in such a way. The machinations that is baseball has yet to realize that it can’t continue to conduct business in a way that doesn’t make any financial sense whatsoever. But Hicks and his cohorts seem to be of the impression that only in spending big can one garner success. It’d appear to be whole rationale behind the way baseball conducts business from afar. And though the team has yet to fully recover from the debacle they’re still not yet in the position where it can be said that they’re able to compete alongside their competitors in the AL West.
Steven Gerrard of Liverpool and England. Gerrard is the captain of the Liverpool side as well as being a member of the English national team. He’s one of the most popular players on the team as well as being the club captain. picture courtesy of bbc.uk.co/sports/soccer/liverpoolfc ……..
For Hicks it can be said that he wanted to make a splash and be noticed within the state of Texas. The owners there in the state of the major high profile sport’s franshises are people of notoriety. Jerry Jones , Peter Holt and the always lugubrious Mark Cuban have to some extent remained either in the public’s eye for a number of reasons. Whether or not the purchase of an English Premiership soccer club that’s known worldwide would garner the sort of publicity Hicks was looking for was open to question. Albeit that I for one would seriously doubt that the majority of Texans would’ve been interested in the first place. Though the purchase in the UK was met with a great deal of derision and anger by the majority of Liverpool fans and fans of soccer in general in the UK. Effigies of Hicks were left hanging outside the club’s headquarters in Anfield. The anti American sentiment was obvious and with the purchase of Manchester United still fresh in the minds of many fans. It was felt as if they were being invaded by the Americans who knew nothing about the sport and who they merely felt wanted to purchase a team as an ostentacious bauble for the to ogle and show off to friends.
An artist’s impression of Stanley Park the new home that’ll become the venue of Liverpool FC in 2011. picture courtesy of bbc.co.uk/sports/images/liverpoolfc………..
And whilst the team now sits in a comfortable place within the Premiership and still in the Champions League , European soccer’s most prestigious team tournament. It can be said that things are looking good for the club. Team coach Rafael Benitez has the team playing an entertaining brand of soocer and the fans are responding to them by showing their rabid support. However the real issues now facing the club are within the boardroom. Hicks and senior partner Ken Gillett may well be parting ways. Much has been made of the unsolicited bid Arab emirates conglomerate Dubai Investment Capital Corporation , a wholly owned conglomerate consortium of the Arab Emirate’s government. Though this isn’t a sensitive issue wherein the subject of the bid is that of national importance. It’s left the impression that this may well cause some embarrassment to all concerned. None more so than to Hicks and his syndicate. The DIC’s unsolicited bid at this moment stands at $800m and is a 160 % premium of the original price paid by Hicks and his party. Hicks is now seeking to buy out the minority stake of his partners though he hasn’t made it known whether or not he intends to accept the bid of DIC at this juncture.
Xabi Alonso (r) and teammates Dirk Kuyt(l) and Steven Gerrard (c) . picture courtesy of guardian.uk.co/sports/soccer/liverpoolfc/images……
There’ll no doubt be discussions between the two parties but knowing the machinations of Hicks a larger bid from DIC can’t be out of the question. The conglomerate is awash with money and they need to spend it as they’re not realizing anything having the cash sit in a money market let alone a CD account. With the depreciation of the dollar and other dollar bearing equities. It can be best said that the ownership of a sport’s franchise may well be better than holding US treasury bonds or stock. Gold would be nice but $800m of it ? A prestigious European soccer club would appear to be the expedient course that one should take. As for Hicks whatever he planned for the club appears not to be his concern at present. As he seems to be on the road to increasing his already sizeable personal fortune. Albeit at the goodwill of the fans and his partners. As to what’ll unfold over the course of the next few months is open to speculation at this juncture. But it merits observation for fans of sports in general.
tophat…..
Topics: Uncategorized |
March 5th, 2008 at 12:55 pm
The Rangers have been spinning their wheels for a while now. Not only some of the big offensive names that have passed through town, but their inability to put together a capable pitching staff. They still have some solid young players with guys like Kinsler…but it won’t matter until the entire organization begins focusing on developing their own top-tier pitchers. Look at Oakland, every few years they bring up another crop of solid major league starters…and use it as trade leverage.
March 5th, 2008 at 1:59 pm
shooter b
There are some owners that can be trusted to do the right thing. And then there are others who just don’t give a damn and are just out to make money at the expense and goodwill of others. Hicks it apparently seems is now one of those. As for what’s gone on within the Rangers’ organization it doesn’t merit really discussing as they brought much of that malaise upon themselves.
I just want to see what’ll materialize out of all of this in the UK. Liverpool is one of the teams I use to support in my youth and a team that I still have an affinity for.
Being the Brit that I am , I try to follow what’s going on in the UK as much as I can. I know that most of the guys within the forum aren’t really interested in the game of soccer to any great extent at all. As it’s seen somewhat effeminate in the eyes of the vast majority of American guys.
Suffice to say that I take the opposite view.
It’s really a great game to watch once you understand the overall rudimentaries of it all. It’s a lot more simpler than comprehending the game of football in many ways.
tophat …………
March 5th, 2008 at 4:49 pm
Are you using a text editor to write, or do you write in Word and then paste? I’m just curious because every time I read one of your posts, there’s about eight spaces between each word. Maybe it’s just my browser.
You know how most Americans feel about soccer. We don’t get it and we’re not in any hurry to try. I don’t know much about Tom Hicks beyond that debacle with the Rangers, but it would appear at minimum he’s a savvy business man. And that is exactly what professional sports is, right?
March 5th, 2008 at 5:39 pm
Although I am only marginally familiar with the Rangers signing of A-Rod, I’m not as knowledgeable about Hicks and his ties to soccer.
I did, however, think the $252 million price tag for Rodriguez was over the top. Did anybody other than A-Rod make money on that deal?
Also, the artists’ rendition of Stanley Park sure looks impressive.
Thanks for clueing me in. I’ll follow your reporting to stay abreast of the latest developments here.
Good job!
March 5th, 2008 at 6:48 pm
The A-Rod signing was huge back then. The money for free agents were outrageous for that time frame for other players as well. But the blame is placed on all the owners who overpaid for non-superstars and superstars alike.
But I don’t have any bad things to say about Hicks. He helped build the Dallas Stars of the NHL and I could name worse owners in sports.
March 5th, 2008 at 7:34 pm
the dan
The real anthesis here is what Hicks now intends to do with the team. He’s already in play to buy out partner Ken Gillett’s shares and that of the other partners. But no word as of yet as to what his intentions are concerning the unsolicited bid. The bid as it now stands is in excess of $800m and it’s said that it could well go higher. As the members of DIC are prepared to bid as high as $1bn if not more. Merely subterfuge at this juncture on his part or not ? He supposedly though stated that it was his intent to keep the team intact and keep it as a viable concern. It’s reputation within Europe is stellar and above reproach. And they’ve known success throughout much of the past decade and beyond. As astute a businesman as you say he is. I think that he’s nothing more than a slick version P T Barnum and Donald Trump rolled up in the same persona. I wonder if this were an Arab consortim wanting to buy an NFL franchise whether or not there’d be some sort of an outcry ?
tophat …………
March 5th, 2008 at 7:40 pm
the dan
As for Hick’s implementation of the signing of A Rod. What the hell did it really do to further the enhancement of the Rangers as an organization ? They won nothing and if anything it set the francshie back 5 years. What good did that do the francshise ? They’re barely competitive now as it is within the AL West. They’ve now got the talent but they still are looking up at the likes of the Angels and’ll continue to do so for a period of time into the future. It’s plain enough there for everyone to see at this juncture.
tophat ……….
March 5th, 2008 at 8:10 pm
Mean Dovine
$252m and what the hell did they expect considering that they did nothing to place a team around him at all. And they just languished in mediocrity for the next few years. However the only thing won was an MVP award by A Rod and that was about it. Some outlay eh ?
As for Hicks should he now bail on the fans of Liverpool then good riddance to him. It’s not as if they can’t succeed without him . They’ve won before and’ll continue to do so long after he’s gone.
The only complaint’ll be if the new owners come and really want to make big changes.
I wonder if there’d be an outcry in N America were this an NBA, NFL, NHL or MLB franchis at the center of unwanted by an Arab consortium ? But that’s not the real crux of the matter however. It’s the actions of Hicks and his partners.
tophat ……….
March 5th, 2008 at 9:01 pm
Toph - At the time of the signing he felt he could jam the stadium with fans and give themselves a shot at the post-season. We knew better of it however.
He also “won” the bidding war. Teams wanted A-Rod and Hicks had to blow everyone away to get him. He took the risk and in the end it did not help. They could not pitch for beans.
March 6th, 2008 at 10:55 am
Moon Dog
If you deem a savvy businessman is someone who overpays for a talent. And then neglects to surround that player with adequate talent to be competitive. Then I for one wouldn’t have him anywhere within 100 miles of any business I were running. Hicks is an ignnoremus and an oaf. He and his cohorts all but ran the Rangers’ franchise into the ground and they’re still paying for it as of now.
If nothing else if he can’t commit wholeheartedly to the team then he ought to sell it once and for all.
The main reason why N Americans are investing in soccer teams in the UK is that they can realize far more in terms of earnings there than they could here in the US.
As for the game being successful here not until the national team does anything of merit will the interest in the game become really heightened. And as of now that’s not happening as the talent pool of players domestically isn’t all that great. And even with the advent of Beckham the interest here is primarily amongst those of an ethnic background and where the game is something of a national passtime.
tophata ………….
March 6th, 2008 at 11:31 am
the dan
The signing may have had some rationale behind it but they were still paying for it long after A Rod left the team. Have they ever actually turned an operating profit whilst he was there ? Suffice to say it didn’t really do the team any good at all. The only person who profitted was Rodriguez himself and he ended up laughing all the way to the bank. He may well have turned the Stars around but that’s hockey and it doesn’t really take much there to make a team competitive at all.
As for Hicks either one of two things’ll happen. He’ll take the money and run. Or he’ll commit to the team wholeheartedly. I’m liable to think that it’ll be the former.
I for one wonder what sort of outcry there’d be were this to happen to a N American sports franchise ? An Arab consortium taking over an NFL, NBA , MLB or an NHL team. It’d be unthinkable to most American sports fans.
tophat ……..
March 7th, 2008 at 5:10 pm
The problem with the Rangers was that Hicks incorrectly identified the team as a contender when it was obvious that the Rangers’ window had closed and the team needed to be rebuilt. Instead, Hicks splurged on high priced signings in an attempt to contend, like A-Rod and Todd Van Poppel, among others, that also resulted in the depletion of high draft picks, which would lead to less young players and pitching. And Hicks kept on pushing, signing CHan Ho Park and losing more picks while making awful ones (passing over Cole Hammels for Drew Meyer is one of the more infamous ones.) Eventualy, Hicks realized that he couldn’t spend anymore and he needed to rebuild, which is where the Rangers have since been left, though some of the more recent trades have crapped out (Soriano twice, Adam Eaton).
As for Liverpool, their fans have already voiced their displeasure with Hicks on several fo the Rangers message boards I freqent, so I know they feel our pain. However, i think the problem with Hicks is that he feels that he needs to completely remake the team in his image instead of building on that team’s exisitng strengths, which is why he gets himself into trouble and why fanbases are less than endeared with him.
March 8th, 2008 at 6:49 pm
morisato
People who purpor to the fact that Hicks is allegedly an astutue businessman. They’ve obviously haven’t that much head for business. His handling of the Rangers notwithstandin shows what a complete ass he is. And as to the situation with Liverpool. He’d better get his house in order before things go awry.
He’s now got to deal with partners who are no doubt extremely disatisfied with his actions as well as boardmembers. Not to mention the fans who are at this moment antagonistic and baying for bloood, anyone’s blood for that matter.
tophat ……….
June 9th, 2008 at 8:42 am
Tom Hicks and Ken Gillett are just 2 of the newer billionaire owners of Premiership soccer clubs, and at least one of them, Hicks, seems to be genuine in his attempts to improve on the position he bought into.
What most new foriegn owners seem to misunderstand, is that football or soccer, has historically been a working mans sport in England. Sure there are huge amounts of money involved in the game nowadays, but the majority of the supporters who watch the teams every week, are ordinary folk who value the traditions of their clubs above ‘international domination’.
The new owners need to be more sympathetic towards the supporters and the history of their clubs if they don’t want to end up with empty stadiums.
June 9th, 2008 at 9:46 am
Ray
I for one minute don’t believe that Hicks possesses any intention of trying to improve the healthy state of this club. He’s merely in it to make a quick hit in terms of a monetarial profit. His so called business acumen is one of saddling an entity with debt and then looking to bail once he’s stripped it of anything tangible in terms of their assets.
Don’t be surprised if Liverpool is up for sale within the next year or so . Hick isn’t as genial as everyone thinks him to be. He’s very much a corporate raider in the mould of Carl Icahn , and others of that ilk.
tophat ……………