Debt-ridden Liverpool to miss out on summer signings

Man uniteds debts are bigger than liverpools but man united debts are managed as they are a bigger club than liverpool and they operate at a profit

Liverpools debts are not being met and the figures at the end of next season with out champions league football will be interesting with out a take over :)

Gillett and Hicks are RUINING OUR CLUB!!

We need to KICK them out ASAP!! Bloody American gold-diggers

Of course Scouser, but the simple fact is we cannot ‘kick them out’ as they own the club! You can no more kick them out than you can kick out the neighbours from their home and move your stuff in! We were put in this mess by Moores who sold to the bidder that would line his pockets most. Now we have to wait for the bidder who will be prepared to line these greedy muppets’ pockets the most. Short of that, the only way to get them out is if the banks foreclose on them but of course that would have massive repercussions for the club.

The sooner a wealthy bidder comes in and completes due deligence and the ‘fit and proper owner’ test, the better. Please note this bidder will need to have access to close on a billion pounds in order to buy the club, build the new stadium and put necessary funds into team building. There are not too many people out there with that sort of money in a credit crunch!

We can ‘kick them out’ Red Barron – ANY time we want to – We just have to be PREPARED to carry on Guerilla warfare against them and break ALL the rules – Go after THEM personally in the UK AND the US – Attack them on their home turf – Hound them, embarrass them in the media, upset and drive away their sponsors/business partners etc, besiege the banks UNTIL They pull the trigger, even cross the FINAL line and PHYSICALLY attack them if necessary (SOS already have against Hicks in his car AND fans have besieged him in the Directors Box) – Basically do what Corinthians fans did to Hicks not to long ago – Go ‘no Holds Barred’ style on them – Rule out nothing and attack them with EVERYTHING. It SOON got rid of Hicks from Brazil and it WOULD do so here as well – It would rid us of both him AND Gillette in short order.

The question is do our fans have the sheer BALLS to do it? As to do so WILL upset the authorities, the powers that be, the football authorities, Hicks & Gillette and EVERYBODY basically. But maybe that’s the price we NEED to pay – Scratch that. That IS the price we NEED to pay – sod the rules/law, never mind who likes us, WE NEED TO SAVE OUR CLUB AND DO IT NOW!!! It’s WAY past time we discarded ALL the rules and went for the jugular of H & G. After all, it’s not like THEY obeyed any rules or scruples when they bought us or since is it. It’s WAY past time they had a taste of their own medicine – In a dose big enough to CHOKE Them…………

Please take a second to read this – credit to B_H_B of RAOTL for the original post:

“While “senior sources” at the club (CP) try to facilitate a smear campaign against the manager, pretend everything is rosy at the club and briefs the press to headline the Rick Parry pay off on the day the club’s financials are tactically released on election results day; here’s what’s really going on at Liverpool Football Club:

The figures released on Friday 8th May 2010 indicate that Liverpool FC is in net debt to the tune of £351m; an increase of £52m from last year’s figure.

A total of £233.996m is owed to RBS, in addition to an inter-company loan of £144.441m owed to “Kop Cayman”; a company owned by Gillett and Hicks based in the Cayman Island for tax reasons; a company that have loaned Liverpool FC £144.441m at an interest rate of 10%. This is the “own money” that Gillett and Hicks claim to have put into the club. In reality, they’re just charging the club 10% interest for lending that money through an offshore limited liability company that they aren’t even personally liable for – Liverpool FC are.

Liverpool FC are not paying the interest off on that £144.4m however. It is being charged as a “compound interest”, meaning the interest isn’t paid, but is instead “rolled up” to the grand total. For example, this year (if I’ve got this right):

£144.4m @ 10% interest = £14.44m payable this year.

Instead of paying that £14.44m, it is rolled onto the total making the outstanding debt owed to Kop Cayman £158.88m. The following year this is then charged at a further 10% interest:

£158.88m @ 10% interest = £15.88m payable next year.

Instead of paying that £15.88m, it is rolled onto the total making the outstanding debt owed to Kop Cayman £174.76m. The following year this is then charged at a further 10% interest:

£174.76m @ 10% interest = £17.76m payable next year.

Instead of paying that £17.76m, it is rolled onto the total making the outstanding debt owed to Kop Cayman £192.52m etc etc etc…

The debt soon spirals out of control, as you can see; and don’t forget, this only concerns the £144.4m owed to Gillett and Hick’s Cayman Islands company – it doesn’t concern the huge £234m owed to RBS.

The financial figures released last week are for the 2008/09 season.

Those figures declare the club made a loss of around £52m for that year, due to the interest repayments on the loans and another £22m spent on the new ground; on what that was spent on we have no idea. There’s nothing to show for it anyway – and the total spend on the new ground now exceeds £50m. To put that into perspective – Sunderland managed to build the 48,000 seat Stadium of Light for a lot less than that. We have a few fences up at the back of the Anfield Road End!

Anyway – we made a loss of £52m that year despite finishing 2nd in the league and reaching the latter stages of the Champions League. The accounts also declared a profit made on player transfers (despite Purslow telling us we don’t need to sell players to balance the books and service debt, and Rafa being accused of wasting millions on players – the accounts prove otherwise).

What are next year’s figures (which will reflect the financial state we’re in today) going to look like with a 7th place league finish and an early elimination from the Champions League? We will also have an increased debt to service as explained above.

Then what about the figures for the next financial year when there’s no Champions League money at all coming in?

While the current owners are in place, we are going to continue to fall further and further into debt. We cannot meet the repayments on the loan as it stands now, and with our revenue due to fall with the lack of Champions League football, we’re on the brink of going into administration.

Anyone with hopes of making any signings in the summer or any future transfer windows needs a reality check. We are going to be very lucky to be hold onto the players we’ve got, never mind being able to bring anybody else in.

Gerrard and Torres don’t want to leave because they don’t like the manager (Purslow is feeding this story to the media to whip up the “Rafa Out campaign”); they want to leave as they know there is zero chance of any new players of any quality arriving at the club in its current state. They also know there’s zero chance of any top class manager coming to the club if Benitez decides to walk or is pushed; no manager worth his salt would come to work at the club under these conditions. They know the club is only going one way.

Until Gillett and Hicks are removed from the club, we’re only going to decline. It really is as simple as that. Nothing else matters.

And remember – these debts haven’t been accumulated through overspending in trying to buy success and compete like was the case at Portsmouth, Leeds and various other clubs – they are entirely generated through debt loaded onto the club just so Gillett and Hicks can own us and bleed us dry with expense claims, management fees, arrangement fees for every refinance deal and wasting over £50m of the club’s money on a non-existent new stadium.

This isn’t the result of bad individual club management as Richard Scudamore of The Premier League claims; it is the result of a leveraged buyout that has loaded the cost of buying the club onto the club to repay. Something The Premier League, The FA, UEFA and FIFA should be doing everything in their power to prevent ever happening again.

2007: £44m debt (£3m per year to service)
2008: £350m debt (£36.5m per year to service)
2009: £378m debt (£40m per year to service)
2010: ???

Those are the levels of debt on the club, with it being only £44m before Gillett and Hicks bought the club. Therefore the club’s profits were able to be invested back into the squad, allowing us to compete on the pitch. We’re now crippled by debts we cannot service, when that £40m leaving the club each year in interest repayments should be being spent on new players.

£76.5m has left the club in interest repayments alone in the past 2 years – and in that time – the manager has not spent a single penny on new players. It’s been a sell to buy policy, with profits being made on transfers in the past few transfer windows as the books needed to be balanced; all while the clubs around us are spending to strengthen. How can we be expected to compete under those conditions?

The debt is growing with every passing day. As a result of the lack of investment in the squad (as well as bad luck with injuries / poor decisions / players out of form etc), we’re paying the price on the field with declining performances which will therefore reduce the club’s revenue even further – giving us even less money to service increasing debts. A vicious circle. It’s unsustainable.

Liverpool FC is paying £110,000 every single day in interest repayments to service a debt we should never have in the first place. That’s £110,000 a day of the club’s money that me and you generate, that we should be seeing spent on new players or developing the club; instead – we are standing back and watching the club being raped in front of our very eyes.

YANKS OUT!