NICE CLUB - WE'LL TAKE IT - Part 2 of the EPIC SWINDLE SERIALIZATION
THE SANDON is a big, working-class pub on a bleak, semi-derelict road, unremarkable except for the fact that on March 15, 1892, in one of its snugs, Liverpool Football Club came screaming and kicking into the world.
Back in those pre-Boer war days the Sandon was where the players would change into their knickerbockers and directors and fans would take porter and ale before ambling to a patch of grass a goalie’s clearance away, called Anfield.
What better venue then for the descendants of those Victorian pioneers to gather 116 years later to formulate a way of reclaiming the old club?
The news that Tom Hicks and George Gillett were attempting to refinance their initial loans by putting £350 million of debt on LFC lit the fuse that sparked a fans’ explosion.
Supporters group Reclaim The Kop called for a mass demonstration at the game against Aston Villa on January 21 and towards the end fans sang the chant that would become a classic of the cause: “ Get out of our club, you lying b******s, get out of our club.â€
Peter Hooton, lead singer of The Farm and a lifelong Liverpool fan, was conscious of a group called Liverpool Supporters Network, who were trying to bring websites and fanzines together to unite against the Americans.
He contacted the men behind it, Andy Heaton and Dave Usher and proposed that instead of everyone being a website warrior in their own bedroom, they held face-to-face meetings and worked out a proper line of attack.
The idea of a mass meeting appealed to Hooton but he feared it could get out of control and descend into a futile gesture if it wasn’t properly run. So he brought in Paul Rice, who was a former chair of the Broadgreen Labour Party.
Hooton’s thinking was that if you could control a meeting of the Broadgreen Labour Party back in the Militant days, you could control any gathering.
Rice felt he needed the Americans’ financial situations analysed and clarified so he contacted Dave Elder, a New York financial expert, asked him to pick the bones out of Hicks’ and Gillett’s dealings and send him a fool’s translation. Which he did.
“We circulated it at the meeting and basically it began to explain how the Americans had structured their debt and how it was starting to come back on to the club,†said Rice.
“I think that was the first time we’d actually realised the severity of the situation and were able to explain what a leverage buyout was.
“The Americans were the on-going target but there was actually an appetite out there to do something much wider and that’s really how the idea of a supporters union came up rather than a single issue protest group.â€
As 350 fans packed into the back hall of the pub, the air crackled with anticipation. Every major fan group was there: Reclaim the Kop, the Urchins, fanzines, the websites and forums. It was like the coming together of the five families in The Godfather.
At this point the union of support groups called themselves the Sons Of Shankly after playwright Nicky Allt’s inspired suggestion. It was changed to Spirit Of Shankly to keep the politically correct lobby happy and maintain the SOS message.
As events moved on, radical members wanted to adopt a more aggressive approach by taking the fight directly to the Americans and Spirit Of Shankly organisers knew that smarter, more lateral thinking was called for.
The idea of Kop Faithful was to build up a following of like-minded fans who wanted to take direct action to organise internet campaigns. They ended up with 15,000 recruits who could engage in swift, concerted cyber attacks. The SOS had its SAS.
The Royal Bank Of Scotland, whose continued funding allowed Hicks and Gillett to survive, bore the brunt of the first wave of Kop Faithful cyber terrorism.
An RBS senior executive, Rebecca Oliphant, who replied sympathetically to an email from Kop Faithful member Steve Horner left her contact details and within hours her inbox was bombarded by hundreds of mails from Liverpool fans urging the bank not to refinance Hicks and Gillett. When she was telephoned for a response, Oliphant went ballistic.
Far from scaring them off, the reaction made Kop Faithful realise how effective their campaign might become if they applied themselves.
They imagined the effect of a much bigger assault on every key executive of the company.
The process was simple. An e-mail will be put together by one of Kop Faithful’s handful of writers, it would be posted on the website with a list of recipients and instructions to copy, paste send and distribute among friends, fans, other websites and Facebook accounts. The young generation of techno-savvy fans overcame all obstacles placed in front of them by anti-spamming agencies.
Every Monday morning senior employees of RBS would turn up for work, switch on their computers only to be faced with several thousand anti-Hicks and Gillett e-mails clogging up the inbox.
Tom Hicks
Then, as the October refinancing deadline approached and Hicks began looking elsewhere for backers, the game changed. Whenever a bank, hedge fund or equity house was linked to the Texan, the addresses of all key personnel would be unearthed, an e-mail would be posted and they would be made aware of who they were dealing with.
On Saturday, September 18, 2010 Kop Faithful learned that Hicks was on the verge of securing a two-year agreement with a company called Blackstone/GSO to pay off RBS and refinance.
By Sunday afternoon 14,000 e-mails hit the inboxes of Blackstone executives and those of allied companies. The message included the following: “If your company agrees a £280 million refinancing deal with Tom Hicks to retain his share in Liverpool Football Club then the only return that you will see on your investment is bad publicity and a severe backlash from Liverpool supporters.
“You are facing an energised, well-informed mass of Liverpool fans from around the world. We are tapped into a constant stream of information on the ownership situation.
“If the Blackstone Group/GSO Capital Partners joins forces with Tom Hicks in raping and pillaging Liverpool Football Club then you will be making a very powerful enemy. You have been warned.â€
The following day as Kop Faithful member Alan Kayll drove around in his taxi he received texts telling him that Blackstone were rumoured to be pulling out. Armed with the telephone number of Michael Whitman, a senior Blackstone executive, he rang for clarification. He left a message on Whitman’s answerphone asking if the reports were true and requesting he called back by 10am the following day. “If you don’t call me back by then I’m going to put your name and phone number on every single Liverpool FC website,†Kayll warned.
Whitman replied to confirm the reports were accurate and added: “We have taken the passion and commitment of Liverpool supporters into this and I wish you well with your campaign.â€
Soon afterwards a reporter on the Wall Street Journal rang from New York to ask Kayll about the story and said: “You do know that you crashed the entire Blackstone/GSO system?â€
The following day Kayll and Kop Faithful were on the front page of the Wall Street Journal in a long article under the headline: “A Texas tycoon learns a lesson: don’t mess with Liverpudlians.â€
There was scepticism in some quarters over whether Kop Faithful’s e-mail campaign actually killed the deal. We will never know the exact truth but there is no doubting the fact that the e-mail storm warning did have an impact on influential American decision-makers in those days when Hicks sought to refinance.
Hicks himself blamed the cyber terrorists for leaving him with nowhere to run. They may not have eventually trapped their prey but they bricked up a lot of the escape routes.
This is the part of the Hicks and Gillett saga that should fill Liverpudlians with genuine pride. It started as a gathering of 350 fans in the backroom of the Sandon pub and spawned a grassroots union, mass protest, media campaigns and Internet war. It led to meetings with representatives of some of the richest and most powerful men on earth and eventually made the Gordon Geckos of Wall Street quiver in their Prada shoes. Those fans refused to take what Hicks and Gillett were throwing at them.
They exposed the pair for what they were and made them pariahs in their own moneyed community.
No group of sports fans has ever left so many rich men feeling so powerless, confused and unsure about their decisions as Liverpool supporters did during those 44 months.
They did not ultimately evict the Americans from Anfield, the Royal Bank Of Scotland did, by taking them to court. But those fans made it increasingly difficult for the bank not to carry out the eviction.