Saudi Prince Eyes Stake in Liverpool

A Saudi prince wants to become co-owner of the Liverpool soccer club in a deal worth up to $560 million that would mark the latest buy-in by Gulf investors in an English Premier League team.

But Liverpool co-owner Tom Hicks is only willing to allow 25% stake in the club to raise $159 million, a person familiar with the situation told The Associated Press on the condition of anonymity because the club is not discussing the situation publicly.

Hicks has had investment bank Merrill Lynch scouring the Middle East for investors for more than a year to help find funds to reduce the club's debt and build a new stadium.

Prince Faisal bin Fahd bin Abdullah al-Saud, who was present for Saturday's 6-1 win over Hull, was quoted by the Saudi Al-Riyadh newspaper on Sunday as saying that "we are seeking, at present, to own a 50% stake in the club."

"The value of the transaction, which is nearing resolution, will be between 200 million pounds ($320 million) and 350 million pounds ($560 million)," said the prince, who is chairman of Saudi holding company FAMA Group and the F6 sports investment firm.

The comments come on the heels of an F6 statement released Saturday that said Prince Faisal had signed a memorandum of understanding with one of Liverpool's American co-owners, George Gillett Jr., as well as Richard Petty Motorsports. That deal envisions in part setting up sports academies in the kingdom and the broader Gulf region.

If Prince Faisal were to acquire a stake in Liverpool, it would mark the latest investment in soccer by investors from the oil-rich Gulf region.

Sheik Mansour bin Zayed Al Nahyan, a member of Abu Dhabi's ruling family, bought Manchester City for 210 million pounds.

The team has spent more than $300 million on new players since Sheik Mansour took over, raising hopes that the long underachieving club could move up in the Premier League and grab a spot in the Champions League.

Sulaiman al-Fahim, the Emirati businessman who helped broker the Manchester City takeover for Sheik Mansour, has also taken control of his own Premier League team -- Portsmouth.

Al-Fahim said he completed his takeover of the club last month, though not before the team was forced to sell several players to meet debt payments. Al-Fahim formerly headed an Abu Dhabi property company and hosted an "Apprentice"-style reality show in the Middle East.

Also, Dubai's Emirates airline significantly boosted its name recognition in the Britain by negotiating a multiyear deal in 2004 worth more than $160 million to attach its name to Premier League club Arsenal's stadium.

The company's ties with the club were strengthened earlier this year when Arsenal opened a football academy in Dubai.