Granada Media Group has bought a 9.9% stake in Liverpool Football Club for £22 million, it has emerged today. The media and hotels group has formed what it describes as a “strategic partnership” with Liverpool FC under which it will handle a number of commercial interests for the club.
Under the deal Granada is to act as the club’s agent in merchandising and product licensing, publishing and electronic media rights, which may include the launch of a Liverpool FC television channel. The shares involved in the deal have been newly-generated by the club; David Moores, chairman of Liverpool FC, is not selling any of his shares.
Granada’s move is the latest in a series of negotiations between media groups and football clubs. In December last year NTL acquired a 6.3% stake in Newcastle United (see Update: NTL/Newcastle United Deal) and subsequently launched and then withdrew a £160 million offer for 50.7% of the club. NTL decided to back out of a full takeover bid for Newcastle following BSkyB’s failure to secure a similar deal with Manchester United (see BSkyB’s Man Utd Takeover Is Blocked). Carlton Communications also withdrew from discussion with Arsenal in November (see Carlton Calls Off Arsenal Takeover Talks). Mirror Group, however, teamed up with Rangers in January this year to form Rangers Television (see Mirror Group Forms Venture With Rangers).
The deal between Granada and Liverpool may throw up a certain conflict of interest for the media group as it also has a stake in MUTV, the TV channel of Liverpool’s Merseyside arch-rivals, Manchester United (see Man Utd. Launches Own TV Channel).
Commenting on the deal, David Moores says: “Granada is not only the UK’s largest media and leisure group; it also has very strong roots in the North West. With the increased capital strength and wealth of commercial expertise the partnership brings I am confident that together we will develop the Liverpool FC brand into a world-leader.”
The television rights for Premiership football games are due for review in 2001 when BSkyB’s current contract with the League runs out. This deal is likely to give Granada influence with Liverpool when the rights are re-negotiated.
Granada is 50% stakeholder in digital terrestrial television broadcaster ONdigital; the other 50% is held by Carlton. Should there come a time when clubs are able to sell broadcasting rights to the games individually, Granada and ONdigital will be able to benefit from the association with Liverpool.
Granada: 0171 620 1620 Liverpool Football Club: 0151 263 8459
