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George N. Gillett Jr.

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George N. Gillett Jr.
Chairman, Liverpool Football Club
In office
February 6, 2007 – October 15, 2010
Serving with Tom Hicks
Preceded byMoores family
Succeeded byJohn W. Henry
Personal details
Born
George Nield Gillett Jr.

(1938-10-22) October 22, 1938 (age 86)
Eau Claire, Wisconsin, U.S.
EducationAmherst College
Dominican College of Racine
ProfessionBusinessman

[clarification needed]

George Nield Gillett Jr. (born October 22, 1938) is an American businessman. Originally from Wisconsin, he lives in Vail, Colorado.

Biography

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Gillett graduated from Lake Forest Academy in 1956. He attended Amherst College and is a 1961 graduate of Dominican College of Racine, Wisconsin.[1] Gillett's first job following college was with Crown Zellerbach as regional sales manager.

Gillett's career continued in the 1960s in marketing and management consulting, initially with McKinsey & Co. A sports fanatic since childhood, by 1966, he was business manager and partner of the Miami Dolphins. In 1966, he purchased a 20% interest in the Miami Dolphins NFL franchise for $1 million. He sold this interest in 1968 for $3 million, and used some of the proceeds to purchase the nearly defunct Harlem Globetrotters and later started Globetrotters Communications, a nationally syndicated radio group. He reinvigorated the Globetrotters by an intense marketing effort that included a popular cartoon series.

In 1978, Gillett bought Packerland Packing Co. With the successful venture of Packerland, Gillett then diversified into radio and television with the start of Gillett Communications Company. At its peak, Gillett Communications owned network affiliates, the majority of which were CBS, in many of the country's major television markets.

In 1979, he launched Gillett Communications by buying three small television stations. Three years later he bought WSM-TV in Nashville, renamed WSMV. In 1984, Gillett acquired Appleton-based Post Corporation's eight television stations, 22 newspapers and associated plants; the non-broadcast assets were sold to Thomson Corporation and other buyers. In 1986, he bought out the two A.S. Abell stations as part of a spin-off resulting from the acquisition of A.S. Abell by Times Mirror Company.[2]

In 1985, Gillett acquired Vail Associates' Vail and Beaver Creek ski resorts. He would often ride chairlifts and greet guests, and launched a massive installation of high-speed detachable chairlifts. Gillett also supported major alpine ski events at a time when most ski areas in America declined to host international races, starting with the 1989 World Alpine Ski Championships, and through his support hosted the 1999 World Alpine Ski Championships.[3]

Gillett acquired majority control of the television assets of Storer Communications in April 1987 from merchant banker Kohlberg Kravis Roberts,[4][5] and represented a valuation of nearly 15 times cash flow for the group.[6] KKR maintained 45-percent minority ownership.[7] To meet regulatory approval, Gillett's existing station group was spun off to Busse Broadcasting, a company formed by Gillett employees.[8] Gillett's purchase was financed by junk bonds through KKR[8] raised prior to Black Monday, which quickly placed Gillett in a 10:1 debt-to-profit ratio.[9] Rumors began circulating of Gillett selling off one or several of his stations, while Gillett was reportedly interested in buying the Seattle Seahawks.[10] One of the Storer stations, WJW-TV, was frequently the subject of sale rumors due to their ratings strength and stability.[11][12]

WSMV was sold off in early 1989, leading Gillett to boast it shored up his company's finances[13] but the firm missed a October 1989 loan payment, prompting three creditors to ask the United States Bankruptcy Court in Delaware that SCI Television be placed in involuntary Chapter 7 bankruptcy[6] while SCI offered a debt for equity exchange.[14] This exchange offer was agreed to within hours of a deadline placed by the Delaware court.[15] Bondholders acquired a 39-percent stake in SCI, while Gillett saw his ownership reduced to 41 percent and KKR's reduced to 15 percent;[7] KKR also cancelled a $190 million debit note held on SCI.[16] Gillett failed to meet a debt payment by August 1990, prompting S&P Global Ratings to lower the rating for Gillett Holdings from a C to a D.[17] Gillett tried to sell his Baltimore station, WMAR-TV to Dillon, Read & Co.;[18] while that sale attempt failed,[19] a second attempt to Scripps-Howard proved successful.[20]

Gillett's financial pressures continued to mount after the WMAR sale was renegotiated to a lower price and a Denver bankruptcy judge denied any further extensions on a Chapter 11 filing.[21] The early 1990s recession also negatively impacted television station cash flow and advertising revenue,[22] on top of Gillett's failure to divest assets prior to a decline in station valuation.[21] Facing lawsuits from multiple creditors including Apollo Partners, Allstate and Fidelity Investments, Gillett Holdings filed for Chapter 11 on July 26, 1991.[23] After reaching another agreement with bondholders, Gillett Holdings was restructured in January 1992, with Gillett as a minority owner but maintaining day-to-day operational control.[24]

Investor Ronald Perelman, regarded as a corporate raider and the owner of Revlon and Marvel Entertainment,[25] purchased majority control of SCI Television on February 17, 1993,[26] pushing Gillett out entirely.[27] The transaction came through a bankruptcy court-approved Chapter 11 reorganization: Perelman's holding company MacAndrews & Forbes made a $100 million investment in SCI, which was still burdened by $1.3 billion in debt, in exchange for 53 percent of its equity.[28] WTVT, Gillett's station in Tampa, Florida, was also included.[29] After the deal closed, SCI was folded into Perelman's New World Entertainment and renamed New World Communications.[25][30]

After junk bonds

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Gillett walked away with $32.1 million to restart his business empire when Vail floated on the NYSE.[31] In 1995, he repurchased Packerland undertaken by Booth Creek Management Corp., a company created to oversee the acquisitions and management of interests of the Gillett family from that point forwards, and of which Gillett remains chairman.

In 1996, he formed Booth Creek Ski Holdings Inc., acquiring or building a range of ski resorts in New Hampshire, California, Washington and Wyoming. He later bought Grand Targhee Ski and Summer Resort, together with several golf courses. Booth Creek continues to operate Sierra-at-Tahoe.[32]

From 1997, he extended his meat interests by building Corporate Brand Foods America (which included ITC, Iowa Ham, Jordan Meats and Wright Bacon). Iowa Beef Processors (IBP) purchased the company for US$550 million in 1999.

Gillett and Hicks, Muse, Tate & Furst then bought ConAgra's beef operations—Swift & Company—for US$1.4 billion in 2000.[33] On July 12, 2007, JBS S.A., the largest beef processor in South America and one of the largest worldwide beef exporters, purchased Swift & Company in a US$1.5 billion all-cash deal. The acquisition made the newly consolidated JBS Swift Group the largest beef processor in the world.

In the meat business, Gillett now also formally controlled:

  • Petaluma Poultry – natural and organic chicken products
  • Snowball Foods – food processor of turkey and chicken products
  • Kings Delight – food processor of turkey and chicken products
  • B3R Country Meats – processes fresh and frozen natural beef
  • Coleman Natural Products – processes fresh and frozen natural pork products and lamb
  • Gerhard's Napa Valley Sausage – a producer of gourmet sausage products made primarily from poultry.

North American sports interests

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In 2000, Gillett joined forces with Pat Bowlen and John Elway in a failed attempt to buy the Denver Nuggets of the NBA, Colorado Avalanche of the NHL, and Pepsi Center. On January 2, 2001, Gillett bought an 80% interest in the Montreal Canadiens and their home arena, Molson Centre, for US$185 million.[34] Prior to the purchase, Gillett had shown interest in the Florida Panthers, New York Islanders, Ottawa Senators, and the Phoenix Coyotes.[35] Gillett's bid initially raised fears that he might move the NHL's oldest franchise to the United States. However, after no other viable offers surfaced from Canadian interests, Molson agreed to Gillett's offer. Molson, however, maintained the right of first refusal should Gillett ever sell the team.

On August 6, 2007, Gillett bought a controlling interest of the NASCAR team Evernham Motorsports from founder Ray Evernham, thereby forming Gillett Evernham Motorsports.[36] In January 2009, a merger was completed with fellow NASCAR team Petty Enterprises. As a result, GEM was renamed Richard Petty Motorsports.[37] Gillett sold his share in the team after the 2010 season.[38]

On March 27, 2008, Joey Saputo, chairman of USL First Division team Montreal Impact, confirmed talks with Gillett and Major League Soccer for a Montreal franchise.[39] While a bid for a franchise was launched with Saputo and Gillett co-heading the venture, as a result of finances, however, the team would rescind the bid later that year on November 22.[40]

On June 20, 2009, the Montreal Canadiens confirmed that Gillett had sold the team, along with the Bell Centre and the Gillett Entertainment Group, a Canadian-based sports and entertainment promoter, to the Molson brothers for a reported $550 million (Cdn). The deal was concluded on December 1, 2009.[41]

Liverpool F.C.

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Main article: History of Liverpool F.C. (1985–present)

Since October 2006, Gillett and fellow American Tom Hicks had been parties interested in a proposed takeover of Liverpool F.C. of the Premier League.[42] In January 2007, Reports stated that Gillett had made another bid for Liverpool. On January 31, 2007, Dubai International Capital announced they had pulled out of the deal, giving Gillett the opportunity to buy the club from David Moores. On February 2, 2007, Gillett and Hicks reached a deal with the club's board, which was sealed on February 6, thought to be worth in the region of £435 million: £220 million to buy out existing shareholders (including approximately £44.8 million of debt), and £215 million for the new stadium proposed at nearby Stanley Park. The Board unanimously recommended that the club's shareholders accept this offer.

On January 22, 2008, a majority of Liverpool fans, at the game between Liverpool and Aston Villa, protested against Gillett and Hicks' running of the club, urging the pair to sell their shares in Liverpool F.C. to Dubai International Capital (DIC). Neither owner, nor their representative Foster Gillett were present at the game. Gillett was reportedly targeted by DIC to sell his shares. It was reported that he has fallen out with Tom Hicks and in recent months has kept silent over his dealing with the club.[43] On March 7, 2008, it was reported that Gillett had agreed to sell 98 per cent of his Liverpool stock to DIC,[44] but Hicks blocked the sale.[45] In an interview on Prime Time Sports in Canada, Gillett revealed that he and his family had received death threats from angry Liverpool fans: "The fans don’t want him [Tom Hicks] to have even one share of my stake in the club, based on what they are sending to me. As a result of that we [my family] have received many phone calls in the middle of the night threatening our lives, death threats. A number came to the office and my son, Foster, and daughter-in-law, Lauren, have received them."[46] The relationship between Gillett and Hicks broke down some time ago, leading to in-fighting at Anfield.[47]

It has been reported that former manager Rafael Benítez's relationship with Hicks and Gillett had become increasingly strained and he was fired on June 2, 2010, after a poor season which saw the club finish seventh in the Premier League, missing out on UEFA Champions League football for the following season.[48]

As of October 15, 2010, Gillett had lost ownership of Liverpool F.C., and despite numerous attempts to prevent it, the club was sold to New England Sports Ventures (NESV), for a fee believed to be around £300 million which was far below his valuation of "between £600M and £1 billion (B)", by the Liverpool F.C. board of directors in a 3–2 vote.

As of November 2010, Gillett was personally named in a lawsuit filed by Mill Financial, seeking $117 million. Mill Financial, based in Springfield, Virginia, reportedly refinanced a loan used by Gillett to buy a big stake in Liverpool F.C. in 2007. Gillett's partner in the deal was Tom Hicks. Gillett and Hicks, dba Gillett Football LLC, lost control of Liverpool F.C. after they were unable to stop the Royal Bank of Scotland, which financed their original purchase of the team, from selling Liverpool F.C. The bank sold Liverpool F.C. to Boston Red Sox owner John W. Henry’s New England Sports Ventures at a price that was lower than expected. At the same time the Liverpool issue was occurring, Gillett's Richard Petty Motorsports fell into financial trouble.

On January 11, 2013, Hicks and Gillett finally decided to drop their case in the English law courts against Sir Martin Broughton, Christian Purslow and Ian Ayre, the three directors on the board of Liverpool F.C. at the time of the sale of the club to NESV. They also agreed to drop their case against NESV and RBS Bank. The terms of the agreement are confidential, though it is believed that no monies were paid to Hicks or Gillett. Earlier in the week, Hicks and Gillett had lost a Court of Appeal bid to delay a High Court trial, so they could have more time to raise the monies needed to fund the multimillion-pound lawsuit.[49]

As of 2016, Gillett is still paying £1.5 million per year in interest payments to Mill Financial, who lent him £50 million for his failed investment in Liverpool.[50]

Other interests

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Other former Gillett business interests include:

  • Northland Services Inc. – a marine transportation company
  • Great Northern Bark and Sierra Organics – landscaping and gardening products company

Gillett's other current business interests include:

  • Summit Automotive Partners, an auto dealership group

References

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  1. ^ George Gillett Joins Vail Banks Board of Directors PRNewswire.
  2. ^ "Changing Hands" (PDF). Broadcasting. July 14, 1986. Retrieved September 6, 2021.
  3. ^ "Colorado Ski & Snowboard Hall of Fame 2005 Induction Gala: 2005 Inductees". Colorado Ski Museum. 2005. Archived from the original on December 29, 2006.
  4. ^ Chatman, Angela D.; Snook, Debbi (April 17, 1987). "Storer, Gillett in talks on WJW". The Plain Dealer. Cleveland, Ohio. p. 17B. Retrieved November 29, 2024 – via Newspapers.com.
  5. ^ Snook, Debbi (April 10, 1987). "Nashville group negotiating for piece of WJW". The Plain Dealer. Cleveland, Ohio. p. 18B. Retrieved November 29, 2024 – via Newspapers.com.
  6. ^ a b "3 bondholders move to put WJW owner in involuntary bankruptcy". The Plain Dealer. Cleveland, Ohio. November 18, 1989. p. 6D. Retrieved November 29, 2024 – via Newspapers.com.
  7. ^ a b "Channel 8 owner avoids bankruptcy at last minute". The Plain Dealer. Cleveland, Ohio. Associated Press. February 1, 1990. p. 1F. Retrieved November 29, 2024 – via Newspapers.com.
  8. ^ a b Richter, Paul (December 27, 1987). "Entrepreneur Builds Broadcast Empire on Debt". Los Angeles Times. Archived from the original on May 25, 2024. Retrieved November 7, 2021.
  9. ^ Dawidziak, Mark (June 15, 1988). "New owner may be putting Channel 8 on block: He's looking at buying pro football team". The Akron Beacon Journal. p. B6. Retrieved November 29, 2024 – via Newspapers.com.
  10. ^ Feran, Tom (June 15, 1988). "WJW sale rumor gets no comment". The Plain Dealer. Cleveland, Ohio. p. 12G. Retrieved November 29, 2024 – via Newspapers.com.
  11. ^ Feran, Tom (June 15, 1988). "WJW sale rumor gets no comment". The Plain Dealer. Cleveland, Ohio. p. 12G. Retrieved November 29, 2024 – via Newspapers.com.
  12. ^ Feran, Tom (June 18, 1988). "Channel 8 reviewing buy bids". The Plain Dealer. Cleveland, Ohio. p. 3D. Retrieved November 29, 2024 – via Newspapers.com.
  13. ^ Feran, Tom (January 17, 1989). "Gillett quiets rumors of sale for Channel 8". The Plain Dealer. Cleveland, Ohio. p. 10B. Retrieved November 29, 2024 – via Newspapers.com.
  14. ^ "TV-8 owner struggles to make payments on buyout debt". The Plain Dealer. Cleveland, Ohio. January 13, 1990. pp. 1C–2C. Retrieved November 29, 2024 – via Newspapers.com.
  15. ^ "TV 8's parent facing deadline". The Plain Dealer. Cleveland, Ohio. January 31, 1990. p. 1C. Retrieved November 29, 2024 – via Newspapers.com.
  16. ^ "SCI freed from bankruptcy threat". The Plain Dealer. Cleveland, Ohio. Associated Press. February 6, 1990. p. 1F. Retrieved November 29, 2024 – via Newspapers.com.
  17. ^ "S&P lowers credit on debt of parent of owner of Channel 8". The Plain Dealer. Cleveland, Ohio. August 17, 1990. p. 16D. Retrieved November 29, 2024 – via Newspapers.com.
  18. ^ Feran, Tom (April 19, 1989). "No problem with your sound, TV-8 just hushing up on sale". The Plain Dealer. Cleveland, Ohio. p. 9F. Retrieved November 29, 2024 – via Newspapers.com.
  19. ^ "Channel 8 taken off the block". The Plain Dealer. Cleveland, Ohio. June 16, 1989. p. 6B. Retrieved November 29, 2024 – via Newspapers.com.
  20. ^ Feran, Tom (September 14, 1990). "WJW-TV on the block again". The Plain Dealer. Cleveland, Ohio. p. 3C. Retrieved November 29, 2024 – via Newspapers.com.
  21. ^ a b Feran, Tom (June 13, 1991). "Debt deadline for parent firm could accelerate sale of TV-8". The Plain Dealer. Cleveland, Ohio. p. 15E. Retrieved November 29, 2024 – via Newspapers.com.
  22. ^ Feran, Tom (May 17, 1991). "For-sale rumor is again playing on TV 8 screen". The Plain Dealer. Cleveland, Ohio. p. 12C. Retrieved November 29, 2024 – via Newspapers.com.
  23. ^ "Gillett Holdings seeks bankruptcy protection". The Plain Dealer. Cleveland, Ohio. June 27, 1991. p. 2D. Retrieved November 29, 2024 – via Newspapers.com.
  24. ^ "Business Briefs: Regional; Gillett status". The Plain Dealer. Cleveland, Ohio. January 23, 1992. p. 55. Retrieved November 29, 2024 – via Newspapers.com.
  25. ^ a b King, James (May 24, 1994). "Perelman is close to media kingpin goal". The Plain Dealer. Cleveland, Ohio. p. 8A. Retrieved December 1, 2024 – via Newspapers.com.
  26. ^ Fabrikant, Geraldine (February 18, 1993). "THE MEDIA BUSINESS; Perelman Agrees to Acquire Control of SCI Television". The New York Times. Archived from the original on December 27, 2015. Retrieved December 23, 2015.
  27. ^ Foisie, Geoffrey (February 22, 1993). "SCI-TV gets a makeover". Broadcasting. Vol. 123, no. 8. pp. 47–48. ProQuest 1016940173.
  28. ^ "SCI's bankruptcy plan earns judge's approval". Mount Vernon Argus. White Plains, New York. Associated Press. May 7, 1993. p. 4B. Retrieved November 30, 2024.
  29. ^ "Entertainment: Tampa TV Station Sold". Los Angeles Times. February 17, 1993. Archived from the original on March 6, 2016. Retrieved October 5, 2020.
  30. ^ Harris, Kathryn (June 18, 1994). "Broadcasting's Creators of a New World : Perelman, Bevins Credited With Transforming the TV Station Operator". Los Angeles Times. Archived from the original on March 6, 2016. Retrieved August 10, 2013.
  31. ^ Best, Allen (December 7, 1998). "Vail and the road to a recreational empire". High Country News. Paonia, Colorado. Archived from the original on September 28, 2007. Retrieved December 3, 2006.
  32. ^ "Booth Creek Resorts". Retrieved December 5, 2017.
  33. ^ "Swift's Return". Meat Processing, North American. June 2002. Archived from the original on March 26, 2005. Retrieved December 3, 2006.
  34. ^ Stone, David (2001). "An American Buys the Canadiens – Montreal Canadiens may be purchased by businessman George Gillett Jr. – Brief Article". Hockey Digest. Archived from the original on July 16, 2004.
  35. ^ The Montreal Canadiens:100 Years of Glory, D’Arcy Jenish, p.296, Published in Canada by Doubleday, 2009, ISBN 978-0-385-66325-0
  36. ^ "Gillett buys majority ownership of Evernham team". ESPN. August 6, 2007.
  37. ^ "Richard Petty Motorsports born out of GEM merger".
  38. ^ "Richard Petty Is a Buyer in the Sale of Petty Motorsports". NY Times. November 30, 2010.
  39. ^ "Gillett launches MLS bid". Sky Sports. March 27, 2008. Retrieved March 27, 2008.
  40. ^ "Montreal withdraws MLS expansion bid". CBC News. November 22, 2008.
  41. ^ "NHL approves sale of Canadiens to Molson brothers". The Star. Toronto. December 1, 2009. Retrieved May 3, 2010.
  42. ^ Bose, Mihir (November 16, 2006). "Moores holds up Liverpool takeover". The Daily Telegraph. London. Retrieved May 3, 2010.[dead link‍]
  43. ^ "The Anfield Divorce". February 26, 2008.
  44. ^ "DIC accepts minority 'Pool stake". CNN. Archived from the original on March 15, 2008.
  45. ^ Northcroft, Jonathan (April 13, 2008). "Anfield anarchy". The Sunday Times. London: News International Group. Archived from the original on July 27, 2008. Retrieved April 13, 2008.
  46. ^ "The Times & The Sunday Times". www.thetimes.co.uk.
  47. ^ "Gillett hits back at Hicks in row". BBC Sport. April 17, 2008. Retrieved June 3, 2010.
  48. ^ "Spaniard departs Anfield after six years at the helm". Sky Sports. June 3, 2010. Retrieved June 3, 2010.
  49. ^ Nakrani, Sachin (January 11, 2013). "Tom Hicks and George Gillett drop allegations against Liverpool directors". The Guardian.
  50. ^ "George Gillett still paying £125,000 a month debt after Liverpool nightmare". independent. March 2, 2016.
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