Is Clark Hunt the mystery American?Updated: March 10th, 2007
Okay, after my suggestion in December that Philip Anschutz could be the American billionaire talking to City swept round the media I should be a bit cautious about starting another rumour. But the name of Clark Hunt is just too strong a possibility to ignore.
The 41-year-old is a member of the Hunt oil dynasty, controls two US soccer franchises and captained the Southern Methodist University’s soccer team as a student.
The Hunts are the real-life Ewing family from TV show Dallas - only a lot richer. Clark’s grandfather, H L Hunt, was believed to be the wealthiest man in the world at the time of his death in 1974, while uncle Nelson Bunker Hunt once tried to corner the world’s silver market.
The main reason for suggesting Hunt is this recent story in The Independent, which claimed an American billionaire with “three franchises in US sports” is looking to buy a Premiership club. According to the paper:
A well-connected source at a New York investment firm said that this unnamed owner considered a bid for Liverpool last year. The source said that the person in question is not Robert Kraft, the owner of the NFL’s New England Patriots, whose previous interest in Liverpool was well publicised, but declined to say who it is. The speculator is believed to be considering other options.
After checking the ownership of US franchises Hunt is the only person who fits that description. His Hunt Sports Group currently owns Major League Soccer’s FC Dallas and Columbus Crew, and the NFL’s Kansas City Chiefs.
Hunt has already expressed an interest in buying a Premiership club. In June 2005 he told the BBC:
“We’re seeing a globalisation of sport so it will be logical if you see some of our other owners buying in Europe. As we move forward it’s something we will look at. There’s definitely a chance.”
Hunt, who is a friend of the Glazer family, spoke positively about their £790m takeover of United. The BBC claimed Hunt “would see how the Glazers got on before making a move”:
“We will follow the story with interest - we follow the sport in Europe - and we will keep our eyes on how things are going over there,” the Chiefs chairman explained.
The timing of the approach might also be a clue. Clark has only recently assumed full control of the Hunt Sports Group, following the death of billionaire father Lamar Hunt on Dec 13.
Another piece of the puzzle is the name of George Foster, who last week was believed to be involved in an Amercan bid. Earlier this week I received an email informing me of a professor at Stanford University of the same name who specialises in sports business managment and who acts as “an adviser to entrepreneurs”.
Admittedly, until the American’s name is officially released we are still very much in the realm of speculation. How firm any interest is, and how many serious bidders there will be is also unclear. It is also not known whether the American has approached other Premiership clubs.
Whoever the American is, I’m told his representatives will be at Eastlands later this week. Recently I expressed some scepticism about the level of interest in City. But things do appear to be moving on. The club recently hired bankers Investec as advisors (I’m told Investec’s Stefan Borson spent most of Monday with the City board) and I understand Ray Ranson’s group have already made their presentation to the club.
Whether this will result in a takeover remains to be seen, but what is clear is that City are in desperate need of a new direction. There’s an excellent analysis of City’s finances at the MCFC Supporters Trust, following the release of the half-year results. It’s written by a chartered accountant and City fan, who believes the club are facing a shortfall of £10 - 12 million this season - one which will have to be plugged by new investment or player sales before the end of the financial year on May 31.
For that reason John Wardle will probably be keen to complete a deal quickly. But the issue of Wardle and Makin’s loans, mentioned in this Times story could make this a drawn-out affair, as has the possibility of scuppering any deal altogether.
Wardle has loaned £14.7m to the club and Makin £4.5m. The loans are unsecured and have been attracting 5% annual interest, making the total liability so far close to £23m. As Wardle made £48.25m from JD Sports excluding salaries and Makin £53.85m (details), this represents a sizeable chunk of their fortune. Understandably, they are keen to get the money back.
Other shareholders have their own priorities, and if they felt a takeover offer places too much emphasis on repaying those loans at the expense of the bid price, a stand-off could ensue.
Any bidder would need 75% of the shares to take control, which means if shareholders representing 25% of the club vote against it the takeover is rejected. A look at City’s major shareholders (below) shows that reaching the 75% figure is no means straightforward, particularly considering that 34% of the shares are in the hands of smaller shareholders.
City’s shareholders:
John Wardle (16.1%)
David Makin (13.85%)
Mark Boler, representing Boler family (18.75%)
BSkyB (9.88%)
Francis Lee (7.13%)
Total: 65.71%
Boler set out his position in an interview with EN magazine in 2003:
“My father bought it (the stake in City) as an investment and at the moment the share price is not as high as it should be. There are no plans to sell, but if someone offered a great price…”
As there’s little love lost between Francis Lee and the current board, it’s unlikely Lee will be making the repayment of Wardle’s loans his top priority. And if Boler and Lee felt a takeover bid represented a better deal for Wardle and Makin than for themselves, they have enough shares to block it.
Likewise, Wardle & Makin can block any bid they do not favour.
It could well be that everything progresses smoothly. But there is the potential here for yet more boardroom unrest at City.
The Wardle and Makin era was ushered in amid boardroom infighting, allegations of dirty tricks and whispers of “fifth columns”. And of course, successive relegations.
Let’s hope their departure will be a far less traumatic affair.