Relationship between Rafa and the new owners

[mooks]

This was posted in the transfer speculation thread but its implications go much further than just the issue of who we will bring in during the summer transfer window.

 

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Benitez gambles Liverpool budget on Eto'o

 

By Sam Wallace, Football Correspondent

 

Published: 02 June 2007

 

Rafael Benitez, the Liverpool manager, is willing to gamble all the transfer funds made available to him by the club's new American owners on a bid for Samuel Eto'o that could reach as much as £35m. The summer scramble for the Barcelona forward's signature is likely to include Manchester United as well but Benitez wants to strike early to get his target.

 

Benitez's comments in the wake of the European Cup final defeat last week caused considerable disquiet at Liverpool and his thinly veiled attack on the chief executive, Rick Parry, upset the new American owners, George Gillett and Tom Hicks. They spoke to the manager eight days ago in a conference call from the United States in which Benitez emphasised his desire for the club to move quickly on summer signings.

 

The criticisms of the club by Benitez were not lost on the Americans, who were persuaded by Parry that they should stick by their manager despite his words. At the time it was felt that Benitez had gone too far in criticising the club publicly. However, in the next week he is expected to test their pledges to back him with money by asking them to put together a bid for Eto'o.

 

Since that last conversation between the four men, Benitez has publicly endorsed his chief executive but a move for Eto'o would be a further test of Liverpool's resolve to sign the very best players in the world. Benitez said this week that he and Parry had "worked together" to sign the Hungarian teenagers Krisztian Nemeth and Andras Simon as a sign there was no problem between him and his chief executive. It was Parry, after all, who defended Benitez when the Americans took exception to his comments after the 2-1 defeat against Milan in the European Cup final.

 

Having seen Manchester United sign up Nani and Anderson this week from Sporting Lisbon and Porto respectively with the minimum of fuss, the pressure is back on Liverpool to see whether they can do the same for their manager. Parry is still in sole charge of transfers until Foster Gillett, son of George, gets his Home Office work permit in August.

 

Dealing with the various parties claiming to represent the Cameroonian will be a job for a real football operator, especially with Barcelona in no rush to sell. Eto'o has a contract at the club until 2010 and would almost certainly have come to Arsenal last summer had Thierry Henry gone in the opposite direction.

 

Benitez tried to buy Eto'o from Real Madrid when Michael Owen moved there in 2004 and wants every effort made to sign the player early so, if his offer is rejected, he can at least turn his attention to other targets on his list.

 

It is still unclear exactly how much money will be put at the Liverpool manager's disposal next season. He has already replaced Robbie Fowler with the Bayer Leverkusen striker Andrei Voronin, a Bosman free transfer. Craig Bellamy has made clear his intention to leave, with Blackburn, Aston Villa, West Ham and even another of his former clubs, Newcastle, signalling their interest. Dirk Kuyt and Peter Crouch, set to be rewarded with a new contract this summer, will stay.

 

The Lyon left-winger Florent Malouda will cost between £8m and £10m. With Bolo Zenden released and Mark Gonzalez close to signing for Real Betis, Benitez's second priority after Eto'o will be two wide players as competition for Harry Kewell and Jermaine Pennant. With one year left on his contract, Kewell would be permitted to leave if a reasonable offer was made - Tottenham Hotspur are interested.

 

Something of a novelty at English football clubs, a spending review by the American owners to scrutinise Benitez's transfer record at Liverpool, is to be carried out by an independent body, most likely an accountancy firm. The results are sure to have some bearing on the funds made available to him.

 

http://sport.independent.co.uk/football/pr...icle2606414.ece

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Now I know there will immediately be people saying this journalist is a tosser who doesn't know anything, has an anti-Liverpool FC agenda, etc., etc.

 

But let's just suppose for a moment that he has a basis for writing this article.

 

The portents could hardly be worse. Both for those who believe we have unlimited transfer funds (I have never believed that) and for those who believe the new owners understand how important Rafa is to the club (I was optimistic on this front).

 

Let's consider the facts. Gillett and Hicks dealt with Rick Parry during the takeover negotiations and they obviously developed a relationship of mutual trust as evidenced by Parry recommending G&H over DIC and the new owners retaining Parry as CEO. Rafa was not involved at all at this stage and went public in March with his concerns over not having the opportunity to talk to the new owners.

 

It should also be kept in mind that North American sports "franchises" are managed very differently from our football clubs. In North America there is a sharp distinction between the roles of the "team coach" and the General Manager. Although it is always a good idea to have open communication between the two it is common for GM's to pull off major trades without even consulting the "coach". Rafa's comments after the CL Final would have been unthinkable in North America.

 

And to those who say RP is a lame duck awaiting the arrival of Foster Gillett, I am not so sure about that. As far as I can tell, Foster is simply going to take over a portion of Parry's duties while RP remains a trusted and powerful figure at the club.

 

The fact the club are conducting a review of Rafa's transfer record - and that this is now public - is hardly likely to sit well with a manager with such pride. We know he left Valencia because he lacked control over the shaping of the club over the longer term. Who knows where this is going to end up.

 

As to what this means with respect to the finances available to Rafa (or whoever replaces him ) Leo No. 8 has tried to explain Club Finance 101 in another thread. But for the vast majority on here I think it needs to be said - EVERY POUND THE CLUB SPENDS ON TRANSFER FEES AND WAGES NEEDS TO BE REPAID. It is as simple as that. Hicks and Gillett are NOT going to lend money to the club and forget about it. The only question is how much will they lend the club and what the terms of repayment will be.

 

How much debt do people want us to go into this summer?

 

Shortly after the takeover it was reported that G&H are planning to take a huge dividend out of the club every year to pay the interest on the money they borrowed to buy the club. It has never been denied as far as I know. In any event, I can't see the new owners lending the club huge amounts of interest-free money to be paid back some time in the distant future.

 

Finally, if this article is true, it raises the question about possible differences in opinion between the new owners. I said at the time I didn't think it was a good idea to have two 50% owners (shades of Evans and Houllier). I have the feeling Hicks is the more ruthless and profit-driven of the two. Which is to say Gillett may be more willing to take a risk and make his personal fortune available to Rafa in the short-medium term but with two owners you must always take a more conservative approach. Perhaps they do share the same opinion on everything but that can't last over the next few years.

[DazzlaJ]

Now I know there will immediately be people saying this journalist is a tosser who doesn't know anything, has an anti-Liverpool FC agenda, etc., etc.

 

But let's just suppose for a moment that he has a basis for writing this article.

 

But if he doesn't it defeats the object. Liverpool at the moment is a magnet for journo's writing b****x

[Guz]

If it's true, I don't see the benefit of conducting a 3rd part "review" of our spending over the last 3 years once the season has finished. What's it going to achieve, why wasn't it done earlier and is it being conducted as some sort of way of G+H retaliation "whoa there Rawfa, hang on a sec chuck. Lets see what you've spent your dough on so far before giving you anything more"

 

Not sure it's something that can be dismissed immediately but I'm usually highly skeptcal of newspapers giving inside information on the relationships of members in a football club, especially in this case the four most important at our club.

[mooks]

But if he doesn't it defeats the object. Liverpool at the moment is a magnet for journo's writing b****x

 

If it's true, I don't see the benefit of conducting a 3rd part "review" of our spending over the last 3 years once the season has finished. What's it going to achieve, why wasn't it done earlier and is it being conducted as some sort of way of G+H retaliation "whoa there Rawfa, hang on a sec chuck. Lets see what you've spent your dough on so far before giving you anything more"

 

Not sure it's something that can be dismissed immediately but I'm usually highly skeptcal of newspapers giving inside information on the relationships of members in a football club, especially in this case the four most important at our club.

Time will tell

[fyds]

Read that through a couple of times and it doesn't add up unless he's been talking at length to at least two from Rafa, Parry, Gillett and Hicks - which I doubt.

[Michael]

Surely the idea of limited transfer funds with strings attached is something that Benitez, Parry, Hicks and Gillet would love to be circulating before they negotiate any transfers. The previous idea doing the rounds of limitless money meant they would be treated like a desperate drunk with a winning lottery ticket.

[Sir Tokyo Sexwale]

it's well thought out mooks, but - G&H must see Rafa's record - not just at Liverpool - as second to none. Yes, every club has to balance the books, Chelsea apart, but (and) Rafa's record backs that. It's unquestionable that a manager is the most important person at a club, so if G&H are looking at Parry over Rafa, then they need to feck right off. And I'm no Parry naysayer. In fact, if they're looking at ANYONE over Rafa, including themselves, they can fookoff

[mooks]

Read that through a couple of times and it doesn't add up unless he's been talking at length to at least two from Rafa, Parry, Gillett and Hicks - which I doubt.

It's obviously second-hand information, fyds

 

How reliable is it? I'd be very surprised if there's nothing to this.

 

it's well thought out mooks, but - G&H must see Rafa's record - not just at Liverpool - as second to none. Yes, every club has to balance the books, Chelsea apart, but (and) Rafa's record backs that. It's unquestionable that a manager is the most important person at a club, so if G&H are looking at Parry over Rafa, then they need to feck right off. And I'm no Parry naysayer. In fact, if they're looking at ANYONE over Rafa, including themselves, they can fookoff

Of course you and I and everyone who follows the club knows that. But owners are strange beasts. I saw this article as primarily being about the relationship between four (extremely powerful) individuals. If our new owners see Benitez as uppity and telling them what to do ... the relationship could become unworkable regardless of Rafa's track record.

[Sir Tokyo Sexwale]

them Parry & Moores f***ed up & we need new owners. I have about 20 quid I can chip in

[mooks]

them Parry & Moores f***ed up & we need new owners. I have about 20 quid I can chip in

Seems Parry did alright if the new owners consider him more important than Rafa

Edited June 2, 2007 by mooks

[JonShar]

[downunder]

I am not 100% sure G&H do want to keep Parry, I am not saying they don't either. I don't think any of us know.

 

In all takeovers (unless a hostile one) everyone seems to get on , if G&H took a dislike to Parry publicly they wouldn't have got close to buying us.

 

So do they think he (Parry) is 'The Man' only time will tell.

[mooks]

I am not 100% sure G&H do want to keep Parry, I am not saying they don't either. I don't think any of us know.

 

In all takeovers (unless a hostile one) everyone seems to get on , if G&H took a dislike to Parry publicly they wouldn't have got close to buying us.

 

So do they think he (Parry) is 'The Man' only time will tell.

I'm not suggesting Tom & George think Rick is 'The Man'

 

Rather that a contest between Parry and Rafa may not be as one-sided as people think ...

[fyds]

I think it's no sided as they are responsible for different aspects of the club. Why does anyone even think a 'contest' should exist?

 

It's obviously second-hand information, fyds

 

How reliable is it? I'd be very surprised if there's nothing to this.

Secondhand or pure speculation based on rumours? If the press had any real idea of what was going on at Anfield DIC would be in charge and Rafa would have been back in Madrid for the last year. I would be very surprised if there was anything in this. No quotes relevant to his synopsis, no names of anyone who may have said anything.

[mooks]

Secondhand or pure speculation based on rumours?

I DON'T KNOW! But my educated guess is second-hand information. The details about the spending review of Benitez' transfer record at Liverpool to be carried out by an independent body, do not have the ring of speculation.

 

If the press had any real idea of what was going on at Anfield DIC would be in charge and Rafa would have been back in Madrid for the last year.

Huh? DIC were very close to purchasing the club and Madrid did make contact with Benitez. The press were right both times. I don't recall the press writing that DIC had completed the purchase or that Rafa was the new manager of Real Madrid.

[Bao]

The details about the spending review of Benitez' transfer record at Liverpool to be carried out by an independent body, do not have the ring of speculation.

 

How would they go about this? Look at how much a player cost and then judge it by what? Minutes on the pitch, starts? Measure players' contributions in some way? And what's the outcome? Rafa's a great judge of keepers, defenders and midfield players but hasn't got what it takes for buying strikers, so we're going to give that responsibility to someone else? Is that what Yanks do in their own sports? Sounds crap.

[Guest Prongsy]

If they sacked Rafa for a few comments, they would be lynched. What a pile of bobbins that article is.

 

So many things in that article that are baseless, presumptuous s****

 

The details about the spending review of Benitez' transfer record at Liverpool to be carried out by an independent body

 

 

And when they do they will see that any purchase over 6m (and many under it) have been a success, or at least worth the money paid. Even the people that didn't fit in have been sold off quickly and normally at a profit.

[allez les rouges]

i'm sure bascombe mentioned in the pink echo last week that the owners were isntructing a firm of accountants to reveiw rafas spending over the last few years.

 

if i were in rafas position, that would upset me alot.

[Mr Makaveli]

I think your post is very good and well based. However you asked hos much debt we are willing to get ourselves into? : A lot. Under 2 conditions, the Asian TV money coming in and also that we have a plus 70K seater stadium built, we can certainly afford to take on more debt... this is no leeds utd spending, and the money would simply be an investment.

 

We could easily spend £100m on players this summer if of course they also had enough to fund this new stadium but that is the question. Do they have enough to fund both? What worries me more than getting these new players is the pending possbility that rafa might leave us, which had never really crossed my mind in any serious way until now.

 

These americans better not mess with the football side of things.

[Rimbeux]

If it's true, I don't see the benefit of conducting a 3rd part "review" of our spending over the last 3 years once the season has finished. What's it going to achieve, why wasn't it done earlier and is it being conducted as some sort of way of G+H retaliation "whoa there Rawfa, hang on a sec chuck. Lets see what you've spent your dough on so far before giving you anything more"

 

Not sure it's something that can be dismissed immediately but I'm usually highly skeptcal of newspapers giving inside information on the relationships of members in a football club, especially in this case the four most important at our club.

 

 

Few things. These guys are new to football finance, and it's massive money. They will want to understand every aspect of how we have operatated, this wont be the only review going on, they will be looking at such as marketing, ticketing, stadium etc. Do you think Parry got precious about them reviewing the stadium plans he oversaw? Do you expect them just to sit back and sign the cheques with no scrutiny or input or interest?

 

Lets look at some outline. The owners will be aware of how much we have spent, and the unarguable facts are that up to the end of the last window, under this manager only Chelsea have spent more, over the decade the same is true, since we've last won the league we've kept spending pace with the most successful team. They will want to understand why we are still short and what needs to change in strategy to rectify it. Now before people start jumping up and down about the mitigating circumstances, changing managers and strategies, number of players needed, starting points etc, this is exactly the detail such a review would go into. What the conclusions are and how they'll change things remains to be seen.

 

As for the rest, I've no doubt the owners were f***ing furious about Rafa crying in the press, something he's made a bit of a habit of doing. They'll be wondering what he's up to, what agendas are being pushed in public, and how they're going to deal with him and respond.

[Mike]

the article doesn't make sense. it says hes going to gamble all his transfer budget on eto'o then says he also wants malouda and a n other.

 

and bellamy has made it clear he wants to stay

[Dublinred4ever]

I don't understand what perspective a firm of accountants can put on Rafas transfer record

 

Surely it's straightforward enough that a look through the clubs accounts by our own people would be enough to compile a report on our recent dealings.

 

I personally feel that any fair analysis of Rafas purchases would have to be favourable.

 

He inherited a squad that was relatively poor and lost probably our second best player, Owen, in his first season. His rebuilding process has been done on a limited budget in comparison to the clubs he's being asked to compete with, and I'm sure a few of his buys weren't his first choice because the money wasn't there.

 

Here's my take on his more expensive purchases

 

Reina, huge success, v good value

Agger, good now, has the time to become great, excellent value at approx 6m, a fifth of the price of Ferdinand

Mascherano, clever purchase, if he ends up costing less than 15m we've done well

Alonso, quality, worth 10m, chelsea or united would've paid 25m

Sissoko, good signing, will only improve, if we sold him now we'd turn a profit

Pennant, is improving all the time and is a very capable 2nd choice right midfielder

Crouch, people laughed at us for buying him, look at him now, not utilised enough but is unique in world football and well worth the money

Kuyt, not my favourite but I don't think we'll see the best of him until he gets more service

Bellamy, worth the money and we'll turn a profit if he goes

Morientes, didn't work out but it'd be hard to doubt his quality, and few people thought he wasn't a good buy at the time

 

Of the others

 

Gonzalez, we shouldnt lose money on him when he goes

Aurelio, free transfer, decent squad player when he's fit

Arbeloa, started well, shaky period recently, time will tell

Paletta, not convinced

 

The less successful

 

Josemi, didn't lose much on him

Kronkamp, served his purpose as a backup to Finnan and turned a few quid when we shifed him

 

The young players he's brought in

 

With all due respect to Heighway I don't have huge confidence that too many of his Youth Cup winners will break through, so I'd support Rafa in his overhaul of the Academy and the influx of fresh young talent he's been signing. Far more chance of three or four of those pushing for a place in the squad over the next few years

 

Thats my take, I'm sure I've missed a few but I don't see how any fair analysis can arrive at any conclusion other than Rafas spent well.

[allez les rouges]

Few things. These guys are new to football finance, and it's massive money. They will want to understand every aspect of how we have operatated, this wont be the only review going on, they will be looking at such as marketing, ticketing, stadium etc. Do you think Parry got precious about them reviewing the stadium plans he oversaw? Do you expect them just to sit back and sign the cheques with no scrutiny or input or interest?

 

Lets look at some outline. The owners will be aware of how much we have spent, and the unarguable facts are that up to the end of the last window, under this manager only Chelsea have spent more, over the decade the same is true, since we've last won the league we've kept spending pace with the most successful team. They will want to understand why we are still short and what needs to change in strategy to rectify it. Now before people start jumping up and down about the mitigating circumstances, changing managers and strategies, number of players needed, starting points etc, this is exactly the detail such a review would go into. What the conclusions are and how they'll change things remains to be seen.

 

As for the rest, I've no doubt the owners were f***ing furious about Rafa crying in the press, something he's made a bit of a habit of doing. They'll be wondering what he's up to, what agendas are being pushed in public, and how they're going to deal with him and respond.

 

i agree with what you are saying, however conclusions will have been drawn from the reveiw. If those conclusions are not favourable, then no doubt rafa will feel he will have to start justifying himself to new owners, who know nothing about football, about events before they even knew who steven gerrard was. thats why i would be upset if i were him.

[Rimbeux]

i agree with what you are saying, however conclusions will have been drawn from the reveiw. If those conclusions are not favourable, then no doubt rafa will feel he will have to start justifying himself to new owners, who know nothing about football, about events before they even knew who steven gerrard was. thats why i would be upset if i were him.

 

Like it or not, Rafa works for them, he is accountable to them, and Parry for that matter. These guys run businesses, and from the money they've made, particularly well. The principles dont really change with different fields, it's about results, strategy to get those results, and strategy to turn things around if the results are not there. Rafa has been outlining his strategy to them, what is required, how it will work, he should also and will also expect some tough questions back.

[Woodsyla]

i'm sure bascombe mentioned in the pink echo last week that the owners were isntructing a firm of accountants to reveiw rafas spending over the last few years.

 

if i were in rafas position, that would upset me alot.

 

Why, they are saying, we kinow f*** all about this so we are going to employ someone who does then we can look at the results and understand it more. As for Rafa's record, it's going ot shine like a beacon, he's made one BAD signing (money wise) and everyone here thought we were getting the deal of the century when we signed him (Morientes).

 

If someone new came into my work said we are going to get an independant company to review the best bits of work you've done over the last 3 years and judge you on it I'd be fecking delighted !!!!!!