Who has benefited most from the takeover of Liverpool football club

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Shahidul Islam

Who has benefited most from the takeover of Liverpool football club?

Economic concepts

  • Business revenue
  • Economies of scale
  • Growth (mergers, takeovers)
  • Supply and demand (wages, ticket prices)  
  • Market structure
  • Costs
  • Externalities
  • Taxation
  • Employment levels
  • Income elasticity of demand (wages)

Which type of people benefited

  • Citizens in Liverpool - (data found)
  • Majority shareholders (George Gillett, Tom Hicks)
  • Former shareholders
  • Players, managers, coaches
  • The actual city - (data found)
  • Fans
  • Councils - (data found)

Data

  • £5000 per share agreed, values Liverpool F.C at £218.9 million.
  • Takeover paid off Liverpool F.C’s debt of £44.8 million
  • Invested £215 million into new Stanley park stadium.
  • Deal worth to be £470 million

Stanley Park stadium

  • The US takeover of Liverpool Football Club is being hailed by the city council as a major step forward for the regeneration of the Anfield area. The £215m project is expected to bring new community facilities, jobs, homes and business to Anfield and Breckfield.
  • "For too long the area has been in decline and I am hopeful that it is now full steam ahead for this amazing project which will give local people a much better life," said council leader Warren Bradley
  • "The club will get a brand new state-of-the-art stadium…with new community facilities and the area will be completely regenerated with new homes and businesses."
  • Under the current proposals, the existing stadium will be redeveloped to become Anfield Plaza - a mix of shops, offices, homes, a hotel, and a new public open space. The project is estimated to create 766 permanent jobs and 260 construction jobs, as well as boosting tourism numbers.
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- Figures released on Monday showed Arsenal's move to the Emirates Stadium has driven a near 50% increase in turnover with operating profits for the year ending May 31 up a massive 274%. Rick Parry said: "We have been saying for years on a match by match basis we are too far behind Manchester United and now Arsenal too. The only reason we want the new stadium is to generate extra revenue…to enable us to be competitive."

 

Shareholders

Liverpool chairman David Moores, who will become an honorary life president, said: "This is a great step forward for its shareholders ...

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