March 29 (Bloomberg) -- Liverpool, the European soccer champion that wants to boost income by moving to a bigger stadium, said it's in talks with unidentified potential investors that may lead to an offer for the club.

Additional funds would allow the record 18-time English champion to buy the players needed to compete with Chelsea and chase a first league title since 1990. Liverpool is also seeking money to build a 60,000-seat stadium, the proposed cost of which has climbed to more than 150 million pounds ($260.6 million) from an initial 80 million-pound estimate.

``It's been quite clear for the last couple of years that the club is in need of investment,'' Rogan Taylor, director of the Football Industry Group at Liverpool University, said in a phone interview. ``It's essential for the club to move forward.''

Liverpool and potential investors see scope to squeeze more money from fans, Taylor said. Manchester United, the world's second- biggest club by revenue after Real Madrid, makes twice as much money on match days from its 70,000-capacity Old Trafford stadium than Liverpool makes from games at the 45,000-seater Anfield, accountant Deloitte & Touche LLP said in February.

Stadium Problem

``It's a fantastic brand with a great history but it has one over-riding problem and that's the stadium,'' Dan Jones, a partner in Deloitte's Sport Business Group, said in an interview at the Sport Business Campus conference in London today. ``If a purchaser is prepared to sort out that issue, then it could work.''

United made 102.5 million euros ($123.2 million) from match-day sales last season, compared with Liverpool's 49 million euros, according to Deloitte. Retail income at Liverpool rose 5 percent to 12.3 million pounds in fiscal 2005. That compares with commercial revenue of 48.7 million pounds at Manchester United.

Interest in Liverpool follows the 2003 purchase of Chelsea by Russian tycoon Roman Abramovich and last year's 790 million-pound acquisition of Manchester United by U.S. billionaire Malcolm Glazer, owner of the Tampa Bay Buccaneers. Lithuanian banker Vladimir Romanov also bought Scottish club Hearts last year. Liverpool Chairman David Moores owns 52 percent of the club.

Liverpool in March 2004, appointed Hawkpoint Partners Ltd. to seek out investors. Spanish millionaire Juan Villalonga, the former chairman of Telefonica SA, Spain's biggest phone company, this week became the latest potential suitor to be linked with the team. In the past two years, Liverpool has rejected proposals from 5 percent stakeholder Steve Morgan, a Thai music company and Hollywood movie producer Mike Jefferies.

``Although the structure of any such investment is uncertain, it may include an offer for the entire share capital of the club,'' northwest England-based Liverpool said in a statement today. Club spokesman Ian Cotton declined to comment further.

Kraft Denial

In November, Liverpool Chief Executive Rick Parry denied that U.S. billionaire Robert Kraft was ready to make an offer for the club. Parry said he visited the owner of the New England Patriots National Football League team to see how he operates a stadium in Boston.

Liverpool rejected an offer of 42 million pounds from Villalonga because it couldn't be sure where he would get the money, the Guardian said March 27.

Villalonga resigned from Telefonica after four years in July 2000 amid a probe into whether he used inside information to profit from trading in the company's stock. The investigation was dropped a week later because of a lack of evidence.

The 52-year-old, a friend of former Spain Prime Minister Jose Maria Aznar since their schooldays in Madrid, has lived in London for a year, according to Spanish Web site El Confidencial. He couldn't immediately be reached for comment.

`Global Force'

``I want to change Liverpool from a domestically focused club into a global force,'' Villalonga told the Daily Express two days ago.

GMM Grammy Pcl, Thailand's biggest music-recording company, offered to buy 30 percent of Liverpool in June 2004. Paiboon Damrongchaitham, chairman and 53 percent stakeholder of Grammy, said in September he was still in contact with Liverpool. He didn't immediately reply to a message left at his office.

Morgan, Liverpool's third-largest shareholder and founder of homebuilder Redrow Plc, in December withdrew a third offer to invest 70 million pounds in England's most successful soccer club. He had no comment on Liverpool's statement, his spokeswoman Linda Bright at public relations firm Active said in an e-mail.

Improved Performances

Liverpool's performances have improved since coach Rafael Benitez arrived in 2004. In his first season, the Spaniard guided his players past richer rivals including Chelsea and AC Milan to win Europe's Champions League for a U.K. record fifth time. The third- placed team trails Chelsea, soccer's biggest-spending team, by 14 points in the Premiership.

``Given the fact we have a Spanish manager we shouldn't be surprised that the investment is Spanish based,'' said Taylor.

Liverpool is the eighth-richest team in Europe by revenue, according to Deloitte. The club made a 7.53 million-pound profit in the year to July 31, compared with a record 18.2 million-pound loss in the previous 12 months, after revenue from cup competitions swelled sixfold to 31.7 million pounds on the back of the Champions League victory. Total sales surged by almost a third to 121.1 million pounds, according to the club's annual report.

To contact the reporter on this story: Sam Sheringham in London on at ssheringham@bloomberg.net

Last Updated: March 29, 2006 06:58 EST