Liverpool "possibly not a going concern" - Beeb

[Rob W 0]

Liverpool FC owners lose £42.6m

 

Liverpool's owners need to refinance their debt this summer

 

The parent company of Liverpool FC, owned by Tom Hicks and George Gillett, lost £42.6m in the year to August 2008. The loss was mainly due to the £36m of interest payments that Kop Football Holdings had to make to service the debt taken on to buy the club.

 

Its auditors warned that the need to refinance loans by 24 July cast "significant doubt" on the future of the group as a going concern. But they added the club's owners were confident they would secure the funds.

 

The US owners bought Liverpool in February 2007, promising to build a new stadium. In their accounts, they say they are "committed to building a new stadium and actively seeking funding to complete the project". But they admit that "the opening of the new stadium will be delayed until 2012".

 

The parent company's loss came despite the £10.2m pre-tax profit reported by the football club in the same period. The profit was helped by increased television revenues and the sale of players such as Peter Crouch, John Arne Riise and Scott Carson.

 

The results for the parent company showed net debt on 31 July 2008 of £300m.

[Toonpack 10388]

Unfortunately they're funded via RBS I believe, I can't see a UK bank "pulling the plug" if it values it's branches safety (be one way to shed jobs I suppose though).

 

If they were funded via some foreign mega-bank more chance of the refinance being in question. Whatever happens though they'll get a big hike on their interest payments I reckon.

[Phil 6]

Yeah, they are funded by RBS, who themselves are struggling.

 

The £300m should have been refinanced in January, but RBS gave them another six months to refinance. I doubt they'll have anything in place so will be subject to penalties / an interest hike.

 

When they bought Liverpool they had plans of building a new stadium, but finance was a lot easier to come by a few years ago. It would seem they will have to sell an asset. I wonder if Man City are circling?

[Park Life 71]

Yeah, they are funded by RBS, who themselves are struggling.

 

The £300m should have been refinanced in January, but RBS gave them another six months to refinance. I doubt they'll have anything in place so will be subject to penalties / an interest hike.

 

When they bought Liverpool they had plans of building a new stadium, but finance was a lot easier to come by a few years ago. It would seem they will have to sell an asset. I wonder if Man City are circling?

 

 

Not as easy as that is it?

[Phil 6]

Yeah, they are funded by RBS, who themselves are struggling.

 

The £300m should have been refinanced in January, but RBS gave them another six months to refinance. I doubt they'll have anything in place so will be subject to penalties / an interest hike.

 

When they bought Liverpool they had plans of building a new stadium, but finance was a lot easier to come by a few years ago. It would seem they will have to sell an asset. I wonder if Man City are circling?

 

 

Not as easy as that is it?

 

 

 

 

Terms and Conditions are very clear and always in the banks favour.

Edited June 5, 2009 by Phil

[Park Life 71]

Yeah, they are funded by RBS, who themselves are struggling.

 

The £300m should have been refinanced in January, but RBS gave them another six months to refinance. I doubt they'll have anything in place so will be subject to penalties / an interest hike.

 

When they bought Liverpool they had plans of building a new stadium, but finance was a lot easier to come by a few years ago. It would seem they will have to sell an asset. I wonder if Man City are circling?

 

 

Not as easy as that is it?

 

 

 

 

Terms and Conditions are very clear and always in the banks favour.

 

I mean if you sell your top tier players, then it affect performance which will rebound on wealth creation.

[ewerk 31587]

Not to mention the fans' reactions.

[Park Life 71]

Not to mention the fans' reactions.

 

Wakes, demo's, sit ins. go slows, cryins, lockins, scavenging, singalongs......etc....

[Phil 6]

I'm pretty sure defaulting on the debt twice will incur RBS taking some kind of ownership, so the sale of assets may not be voluntary.

 

+You think they'll use common sense and logic to handle the debt?

 

 

Gillette and Hick are as inept as Ashley - they said in the Liverpool Echo that if Rafa didn't qualify for the knock out stages they'd bring in Klinsmann.

[Park Life 71]

I'm pretty sure defaulting on the debt twice will incur RBS taking some kind of ownership, so the sale of assets may not be voluntary.

 

+You think they'll use common sense and logic to handle the debt?

 

 

Gillette and Hick are as inept as Ashley - they said in the Liverpool Echo that if Rafa didn't qualify for the knock out stages they'd bring in Klinsmann.

 

Are they at Anfield much?

[Billy Castell 0]

I think one is there fairly often, though I forget which. It doesn't help the red bin dippers that their to owners openly detest each other and have constant boardroom battles.

 

Whilst it would be great to see a G14 club to do a Leeds, I doubt it would happen. Some daft Arab will move in at the last minute to take them on. Chelsea were in a similar situation before Abramovich appeared from nowhere.