Gilett’s Liverpool investment suffering from weak dollar
DANA POINT, Calif. ” Liverpool co-owner George Gillett said the weak dollar makes it difficult to invest in the English Premier League club.
Since acquiring a 50-percent stake last March, Gillett, who also owns the NHL’s Montreal Canadiens, has been frustrated as the dollar has slumped.
“We’ve invested internationally with Liverpool and with Montreal in Canada, and it’s had a very positive effect on both of them from the standpoint of strengthening the value,” Gillett said in an interview with Sports Business Journal at the IMG World Congress of Sports.
“On the other hand, it’s made it more difficult in terms of investing in those businesses because the dollar is really tremendously weak compared to where we started. It just costs us more to send money to those franchises, those business.”
Widespread concerns about the outlook for the U.S. economy saw the dollar drop Thursday to a new low against the euro.
It is the first indication why Gillett has been trying to sell his stake in the club. Co-owner Tom Hicks has blocked the purchase by Dubai International Capital.
Hicks, who also owns baseball’s Texas Rangers and the NHL’s Dallas Stars, wants to buy a small percentage of Gillett’s stock so he will gain a controlling interest and reduce the UAE consortium to silent investors.
Despite the friction between the Americans and furious protests by fans, Gillett insists he still enjoys being involved with Liverpool.
Gillett, the majority owner of the Gillett Evernham Motorsports NASCAR team, said, “I’m really enjoying all three (teams), but for different reasons. In Liverpool, it’s a long distance away and there’s been a fair amount of controversy over there.
“In spite of that, the boys are playing very well and I’m proud of them.”
Despite a disappointing Premier League campaign, Liverpool has reached the quarterfinals of the lucrative European Champions League. The Reds host Reading in the Premier League on Saturday as it looks to secure the fourth qualification berth for next season’s lucrative Champions League competition.
The Canadiens have moved into first place in the NHL’s Northeast Division.
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