Sheik Mohammed poised to buy Liverpool

HE Arab invasion of the Premier League seems certain to continue after Liverpool's American owners weakened in their resistance to sell the club to Sheik Mohammed, the ruler of Dubai.

Tom Hicks vetoed an attempted sale by George Gillett Jr, his co-chairman at Anfield, this year but the Americans are expected to return to the negotiating table as an unforgiving financial climate takes a toll on their ambitions for the club.

Hicks maintains that he will not sell Liverpool, but the Texan is known to be troubled by the financial storm that has engulfed him and Gillett in the past 12 months.

Last week, they blamed the credit crunch for the postponement of building work on a proposed 60,000-capacity stadium in Stanley Park.

With the Premier League stakes raised further by the Abu Dhabi royal family's imminent takeover at Manchester City, Hicks and Gillett are close to conceding they do not have the resources to fulfil the ambitions they had when they bought Liverpool in February, 2007.

There remains a pound stg. 400million-plus offer on the table from Sheik Mohammed, who is leading the bid that was being driven by Dubai International Capital, the private-equity investment arm of the Dubai Government, when Hicks blocked Gillett's attempted sale this year.

Hicks is known to be more open to selling Liverpool, but the two sides remain some way apart in their valuation of the club.

Gillett and Hicks are aware that the pound stg. 350million ($744m) refinancing deal they secured through the Royal Bank of Scotland and Wachovia a little more than seven months ago is up for renewal on January 25 and that the banks are not certain to grant them the option of a six-month extension. They must decide by January whether to try to prop up their regime for a further six months, or sell.

The takeover of Manchester City could have a knock-on effect, with Liverpool facing greater competition to qualify for next season's Champions League. The club has annual interest payments of pound stg. 30m, which last season's revenue from European competition went a long way to clearing.