Business Case Studies, Strategy Case Study, Mergers, Acquisitions, Alliances and Synergies

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Mergers, Acquisitions, Alliances and Synergies Case Study

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Case Title:

Liverpool Football Club: Takeover by American Tycoons

Publication Year : 2007

Authors: Maulik Bhatt, Amy Sonpal

Industry: Sports Club

Region: US

Case Code: MAA0110A

Teaching Note: Available

Structured Assignment: Not Available


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Abstract:

Liverpool Football Club was a leading sports club in England. It had won 18 titles in first division football, the highest for any football club in England.

In December 2006, Dubai’s Dubai International Capital (DIC) approached the club with a takeover bid. DIC took its time to study the club’s books and offered ₤450 million for the club. At the same time, two American businessmen George Gillett and Tom Hicks launched their bid for the club worth ₤438 million. DIC withdrew its offer, and Liverpool accepted the offer from the two American businessmen.

The case compares and contrasts the pros and cons of the two offers, and ends in a debate over the club’s future success rate with the new ownership.

Pedagogical Objectives:

  • To understand the football sports industry and the valuation of a sports club
  • To understand the revenue model of a football club
  • To debate on the Liverpool Football Club’s future success rate with the new ownership.

Keywords : Mergers,Acquisitions,Alliances Case Study;Liverpool Football Club; Sports Club; Takeover; Valuation; bid comparison; Finances of a football club; revenue models; England football clubs; Montreal Canadiens; National Hockey League; Fédération Internationale de Football Association (FIFA); International Football Association Board; Business Strategy; George Gillett; Tom Hicks; Manchester United; Malcolm Glazer

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