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The Infamous

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Lebron James’ partial ownership of Liverpool and his related commercial tie-in is already paying dividends for the Merseyside team – boosting their brand with effective TV advertising time that could be worth $1m per minute Stateside.

On May Day, millions of basketball fans world-wide watched as the NBA’s prime-time favorites, the Miami Heat, won the first game of the Eastern Conference semi-finals over the Boston Celtics.

The series is a dream match-up for the NBA – the two teams attracted record viewership for the 2010-2011 season opener. This followed the summer of the ‘great migration’ spawned by a ratings success in its own right, ‘The Decision’. James’ polarizing ESPN TV special announcing his move to Miami, greeted by an uproarious crowd response of boos and cheers alike.

But it wasn’t the Heat’s home win to open this second-round play-off series that caught the attention of Scousers the world over. It was the unique post-game garb Lebron donned following the win. Shedding his typical preppy casual appearance, he filled out an Adidas–free Andy Carroll kit (Nike is one of James’ primary sponsors) sitting at the press conference table fielding questions from the media on the Heat’s solid start.

When an American reporter questioned James’ choice of outfit, he showed pride in his team’s win over Newcastle on Sunday. “I am following them from a distance,” he said. “Hopefully I can get out there and catch a game, but right now, this is the only game I’m thinking about.”

His humble affection for the Reds showed a glare of charm, but the smirk on James’ face told a different story. The realization gradually dawned on America that it had just witnessed an advertisement - integrated marketing at its finest – with a brilliant set-up by the reporter playing the pawn.

Showing public support for King Kenny’s men, King James decision to wear No9 - the jersey of the most prominent player acquisition for the club at the death of this year’s transfer deadline – would’ve raised more eyebrows if it weren’t for last month’s announcement that the two-time NBA MVP had purchased a share of Liverpool FC.

LFC owner John Henry’s decision to bring James on board as a minority owner was far from an ill-advised decision because the commercial has only just begun. The exposure a brand such as Liverpool FC received during this press conference and the subsequent replays on sports networks, media channels, and across the football-loving blogosphere is difficult to estimate accurately.

Twelve minutes of national television coverage during the play-offs doesn’t come cheap, but just imagine the worth of this type of endorsement if the Heat make it into the NBA finals.

Thirty seconds of NBA finals airtime cost advertisers $400,000 in 2010. Add in the endorsement from a current player of James’ stature, and the value logically exceeds half a million dollars for 30 seconds, $1m per minute.

That in a nutshell is the value to Liverpool of Lebron’s association: potentially $1m of ad TV advertising time exposure for a club that might (would) otherwise struggle to make an impact on the US sporting public.

It’s clear that Henry’s return on investment depends on James’ ability to navigate conflicting interests, and there was no better motivator than bringing James on as an investor.

James’ stake in the eighth most lucrative football franchise in the world was a key concession in this landmark marketing partnership in which Fenway Sports Group owners John Henry and Tom Werner broke from their business tradition of inking marketing deals for the organizations they own such as the Red Sox to sign a deal with an individual person.

Not just any individual person, but a 26 year-old athletic phenom who is fast becoming more brand than man.

Following the 2008 Olympics in Beijing, Lebron holds court as the 2nd most popular athlete in the billion-customer country of China (2nd only to Kobe Bryant).

In fact, the value of James’ play on the court – siphoning $15.8 million a year from the Heat – stands at roughly half of his value in sponsorships estimated at $30 million a year.

Since the Reds happen to be the most popular club in this highly-coveted market, Lebron’s investment in Liverpool is another way to gain market share in China while preparing for the next epic commercial event, the 2012 Summer Olympics in London.

Could we see a repeat of Michael Jordan’s ‘dream team’ fiasco? MJ stood on the gold medal stand at the 1992 Olympics in Barcelona draped in the American flag not as a symbol of patriotic fervor, but rather catalyzed by the need to serve the brand. He covered the Reebok logo to keep the Nike execs content.

After James cashed in on England’s Bank Holiday to promote a club more than 5,000 miles away, expectations are set higher for him, although clearly not in terms of ethical fortitude. Rather, it will be interesting to see how he approaches the next 15 months in preparation for a golden opportunity to grow the Liverpool brand.

While in residence on British soil?Could the summer of London become the summer of Lebron?

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Cesc was going to leave last summer lol. Ballague speaks to the players or people very close to them, sadly he didnt speak to Arsene Wenger. Graham Hunter was the only Spanish journo who said the deal wouldn't happen because the clubs were never gonna agree a fee.

Reina had no real options anyway.

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LIVERPOOL FC turned in a pre tax loss of £20m last year, the club’s latest set of accounts reveal today.

The Anfield accounts, which cover the period August 2009 to July 2010 and relate entirely to the last full financial year of ownership under ousted Americans Tom Hicks and George Gillett, also saw interest payments rising by nearly £5m annually.

They went up from almost £13m in 2009 to £17.7m in 2010.

The accounts, obtained exclusively by the ECHO, also reveal that the cost of parting company last summer with ex manager Rafael Benitez and his immediate staff approached £8m.

Liverpool’s accounts, lodged with Companies House last week and due to be published soon, entirely pre-date the buy-out of the club by New England Sports Ventures, since renamed the Fenway Sports Group.

That takeover, which followed a dramatic series of London High Court hearings in October last year, saw the group led by Boston Red Sox baseball team owners John Henry and Tom Werner reduce annual interest payments to around £3m a year.

FSG have repaid £200m worth of acquisition debt which Hicks and Gillett had saddled the Reds with – sparking outrage at the time and a fans campaign to drive them out.

Supporters accused Hicks and Gillett of breaking their promises and crippling the club with massive annual interest payments on the loans they took out to buy it in February 2007.

The figures in essence reflect the final period of ownership under Hicks and Gillett – and were described today by current LFC managing Director ŠIan Ayre as ‘a footnote in our history’.

Ayre stresses the club’s financial landscape has transformed dramatically since the accounting period ended – three months before he, ex-Chairman Sir Martin Broughton and former MD Christian Purslow forced out Hicks and Gillett.

Ayre says the club is now ‘moving forward’.

Today’s figures also show the club’s revenues increased by £7m from £177m to £184m.

But those numbers do not embrace the record £81million shirt sponsorship deal which Ayre led the way in brokering with Standard Chartered Bank last year.

‘Administration expenses’ at Anfield increased by £20m from £162m to £182m – largely reflecting costs related to extensions of contracts with players.

There was however a profit of £23m returned on player trading – almost all of that down to the sale of Xabi Alonso to Real Madrid.

Media revenues at Anfield were up by £5m to touching £80m.

The accounts, also refer to plans for a long awaited new stadium, saying: “During the year the company committed a further £2.9m to the planning, design and enabling works of its new stadium project, giving a total of £48.4m carried forward under the heading of assets in the course of construction.

“At the year end (July 31, 2010) the directors were confident at that time that a new stadium would be funded and completed and were fully committed to the project.

“Following the acquisition of the company subsequent to the year end, the new owners are currently evaluating the best course of action with regard to the stadium.

“Whilst this review process has not been completed at the date of signing the accounts, it is highly likely there will be a significant write off of the new stadium project costs in the financial year ending July 31 2011.

“The directors continue to monitor the useful economic life of the existing stadium, which they consider to be five years including the current year.”

The ‘write-off’ references are understood to relate to expenditure regarding the new stadium design developed by Dallas based architects HKS under Hicks and Gillett’s tenure at Liverpool.

References to a ‘five year economic life’ for Anfield are understood to be necessary accounting term references - in reality Anfield as a stadium can be extended for very many more years than that at a modest annual maintenance cost.

Ayre, Liverpool’s former Commercial Director who was appointed Reds MD earlier this year, said:Š “This is a historical footnote in the history of the club.

“As much as we were well aware of the difficulties surrounding these accounts, everyone in the world is now aware of what has been achieved since.

“That sets the club up in lots of different ways.

“It has the ability to reinvest in the team, there is less debt and we can now continue to support the growth of the club.

“We have also had significant commercial growth since these accounts were published.

“The club is now in an excellent position to move forward.”

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Just scanned a few pages around the time of Hodgson's sacking and Dalglish's appointment

The youth players dont even seem up 2 scratch tbh..

The whole thing needs a massive shake up tbh

Players are f*ck*ng SHITE

We went out with a attacking formation and all they did was hit it long

f*ck our squad. We need a total clearout. At least 5 of the 1st teamers should never have even been bought by us.

Absolutely disgraceful bunch of players. Possibly the worst I have EVER seen in my life as a Liverpool fan.

Was just coming in here to say. Lol @ this club.

lol@ Liverlool

Why bring some old dinosaur back into football

Gerrard shouldn't be captain if he cant fire up his team mates anyway, bait your going down now

I think deep down Liverpool fans know Dalglish aint saving them

They are a broken team and need a big revamp with a new manager and a team shake up for next season

Lol at shouting down MON yet welcoming Dogleish

some circus

Its done now and we have King Kenny at the helm

AVVIT. I know for a fact man are shiverring over the prospect of us coming back next season with a VASTLY improved squad because quite frankly lads YOU CANNOT GET WORSE THAN THIS. BRING IT ON.

B)

Dalgleish eh... Will inspire some fire in some players belly and the fans aswell.

Very good appointment.

That alone will rescue a little credibilty in Liverpools season.

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294993683.png?AWSAccessKeyId=AKIAJF3XCCKACR3QDMOA&Expires=1304979317&Signature=ENHHbZKnueuxcxXlokfPeF3O0%2Bg%3D

Worst start in 50 years...

9 points from Arsenal who are in third...

4 points from City who are in fourth...

Were going to sign Cahill, Young, Enrique, either Mata or Munian + a Marquee signing...

Gerrard + Kelly to come back strong.

This is our pre-season...

Cant f*ck*ng wait for next year

:mj:

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SUAREZ played the biggest part in changing our season around. Sorry but without him we would not be in this position.

If we still had Torres I can guarantee we would be in a heap of sh*t by now. Bottom half of table etc. So yeah Kenny did a lot to the squad dynamics by bringing in 2 class strikers. Without them our squad dynamics would be shocking like it was when Kenny took over.

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