Liverpool FC in severe financial trouble

According to reports in the Liverpool Daily Post, Hicks and Gillette have made a £42.6million loss last season through the Kop Holding mostly due to interest repayments hopefully this speed up the departure of these two clowns.

According to reports in the Liverpool Daily Post, Hicks and Gillette have made a £42.6million loss last season through the Kop Holding mostly due to interest repayments hopefully this speed up the departure of these two clowns.

thats not all sh*t.. sources close to the club say Rafa's got no money for the market.. bloody dickheads.. am fuming.. absolutely fuming.. could f***in ki.. forget it.. some glass stuff of my house is gonna bear the grunt. hate those bas**rds..
as my girlfreind suggested give them your pocket money.. .. would empty that.. though it wont buy a lace..

This is getting out of hand. If these 2 fu**wits declare themselves bankru.pt or Kop holdings bankrupt we face a f**king points deduction. That would kill any hope of the title. These 2 shi*s need to sell now and get out of town. Surely someone out there will buy us come on.

 

 Liverpool FC owners lose £42.6m

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.

Player sales

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.

http://news.bbc.co.uk/1/hi/business/8084182.stm

Just one word F**k!

yeah i read that and thought the same unbelivable, LiverpooFC's name and what it stands for has never been more disgraced ever ! since them two c**ts (H&G) took ownership :/ im sure this time its gone too far and as Brian78 said

This is getting out of hand. If these 2 fu**wits declare themselves bankru.pt or Kop holdings bankrupt we face a f**king points deduction. That would kill any hope of the title. These 2 shi*s need to sell now and get out of town. Surely someone out there will buy us come on., could we face a points deduction ? :/

 

sorry i added that little bit at the end on and didnt mean to, apoligies

Club makes a profit, parent company makes a huge loss due basically to paying interest on loans, every time they refinance those loan payments increase, and what are they proposing to do next month? yes that's right refinance the loans, so Kop Holdings debt inreases further. At some point KH may go under they're certainly bordering on insolvency with a net debt of £300 million. So if they can't refinance they go under and we get sold off to clear the debt, so the more that H&G hold out for in selling the club, the more they get to take home. They say that they're looking for investor but who the f*ck is going to invest in a parent company bordering on insolvency - no one. Those gobsh*ites really are taking this close to the wire. We must keep up our campaign to get rid of them before they take us down with them

Anfield's house of cards shaken to foundations

For Liverpool, it is vital not only to their future as a solvent company but also their continued participation in the Champions League, on which they rely increasingly for the income to service their burgeoning debt.

It is a delicate situation. Uefa, which runs the Champions League, demands that clubs provide detailed financial forecasts before it will issue them with a licence to compete in its competitions.

But, despite worrying levels of debt and the caveat from their auditor at KPMG about their ability to remain solvent, George Gillett Jr and Tom Hicks, the co-owners, must have done enough to convince Uefa that Liverpool will not go bankrupt halfway through next season or the club would already have been thrown out of Europe.

the fact that a £350 million credit facility secured by Kop Football (Holdings) Ltd, the club’s holding company, is due for repayment on July 24 is undeniable. So, too, is the lack of a replacement arrangement with RBS and Wachovia, despite the insistence of the owners that there will be one in the coming weeks.

So KPMG has a duty to highlight the “material uncertainty which may cast significant doubt on the company’s ability to continue as a going concern”. Experts say this constitutes a special alert for shareholders — or, in this case, supporters. It is essentially code for “you should be worried about this”.

What is worrying for Liverpool is a basic admission that the club are not generating enough income to cover interest payments totalling £36.5 million and the ambition to attract the biggest — and most expensive — players to Anfield. Staff costs in the 2007-08 season were nearly £90 million.

Even if Gillett and Hicks do successfully renegotiate the soon-to-expire credit facility, there remains the question about their long-term ability to take losses that at the last count were £42.6 million.

There will be continued pressure on the owners’ American sports businesses to prop up Liverpool’s financial house of cards if the credit crunch continues to equal crippling lending terms.

It surely has not helped that they made a dud call on the direction of interest rates, entering into fixed agreements between 4.3 per cent and 6 per cent as the Bank of England cut its rate to a record low of 0.5 per cent. The cost of exiting these hedging agreements would total £30.6 million, prompting KPMG to describe them as “potentially onerous contracts”.

The bottom line is, when they add it all up, will they reckon it is worth it?

   
 
i edited lil bit of article out, cuz it was getting too long.
http://www.timesonline.co.uk/tol/sport/football/premier_league/liverpool/article6433996.ece

£300 million worth of debt.

Says it all really.

Theres More !         From the BBC Sport Pages.


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.

Player sales

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.

'Concern' over Liverpool's £350m debt

Liverpool's owners Tom Hicks and George Gillett have been warned by their auditors that failure to refinance a £350 million loan due next month will threaten the club’s ability to operate as a going concern.

The warning is contained in accounts filed yesterday which also reveal that Hicks and Gillett paid £36.5 million in interest last year, contributing to a holding company loss of £42.6 million.
The American co-owners are in negotiations with banks RBS and Wachovia to refinance the debt, repayable on July 24, and are also seeking fresh investment from a third party.

The owners remain confident they will agree a deal with the banks, but in accounts for the club and its holding company, Kop Football (Holdings) Ltd, auditors KPMG warn of a “material uncertainty” over the club’s future.

“The group has credit facilities which expire on July 24. The directors have initiated negotiations to secure the replacement finance ... and these are ongoing,” KPMG write. “These conditions ... indicate the existence of a material uncertainty which may cast significant doubt on the Group’s and parent company’s ability to continue as a going concern.”

KPMG’s comments serve as a reminder of the crucial nature of the refinancing talks. The accounts also demonstrate that the profit made by the club, £10 million before tax in 2007-08, is swallowed by interest payable on the owners’ loans.

Sources close to the owners said that KPMG’s warning was a technical formality given the proximity of the refinancing date.
They also said Uefa has just renewed the club’s licence to compete in the Champions League, a condition of which is that the club is a going concern.
In the accounts Hicks and Gillett insist: “The directors have a reasonable expectation that the group will secure adequate resources to enable [it] to continue in operational existence.”
The accounts also show they have provided personal guarantees against £185 million of the debt.

Telegraph link

It's all over the news now. When the words 'uncertainty' and 'club' are used in the same sentence, it's not F***ing good.

We now have to take control of our club. We have to come together no matter how small to gain control without incurring the penalty of administration, so we need £300 million. Basically we need to do a Barca, so come on SOS you are currently the best placed organisation who could achieve this, lets do it.

Get them pair of pricks out of our F***ing club now.

David Moores, Rick Parry - I don't know how you pair dare take the seat of a genuine Liverpool fan.

The way I see it - we're pretty fu**ed.  Talk about backing the wrong horse.  We need proper owners.  Men with morals and scruples who can raise the finances, or provide their own, to build a world class stadium for a world class club and not load the burden of debt on to the club itself.

Absolute disgrace.

Just as it was all starting to go so well for us on the field we're all reminded we are owned by two old fashioned cowboys from the Wild West.

Seen this on TLW and pretty much sums it up.

See that tramp sitting on the floor in that cardboard. See his little cup asking for donations. See his brown and rotting teeth. See his raggedy clothes. See his dirty wrinkled and unwashed skin. See his poverty.

That's us that is.

Top post JD. As a lifelong Liverpool fan I don't feel sorry for myself Iv'e been on all those marvellous and tragic occasions, but the new supporters are prevented from
 enjoying the current success under Rafa by all this economic sh*te. This is not what football is all about. This is now not about reclaiming the Kop it's about reclaiming football. True seats for true fans.

This is fu**ed.

Parry I hope you rot in your grave you filthy b***ard.

Player sales ey??

Good bye Xabi.

Anyone willing to start a petition to kick the fat wankers and Rick out??

Rick is out now so he'll be better off F***ing elsewhere. But now the two pricks, the fat tw*ts are an absolute disgrace. Fans of this club? Kindly F**k off, we dont need fans like you, bringing shame about you and the club.

Disgraceful, and the F***ing yanks dont see it themselves. Just for his F***ing pocket Rick, you choose money than the lifelong future of Liverpool FC. That is why our finances are in dire straits, cu*ts like you that ruin the glorious club for choosing buyers like these.

Get out, we'll shut the door onto you and you'll never be back. Simple.

F***ing disgrace,how could those wa**s push it so far,they had countless offers and yet they turned them down.Guess there goes Rafas 30 million budget and probably a couple of our players.F**k THE YANKS

Thanks for F***ing nothing you Yank cu*ts.

Now get the F**k out before you get lynched 

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.

Sums it up for me those couple of paragraphs.

They took massive loans to buy the club and supposedly start building the stadium. Loans they haven't even started paying back yet - are they even paying off the interest the loans generate, or have they been taking other loans to do that?

F***ing awful business, but surely it can't come as a big surprise to anyone, we've been talking about this for a long, long time already in the possible takeover thread. We already knew we were up sh*t creek with these two now the loans are secured on the club. We already knew they are liars and poor excuses for businessmen.

The last sentence is pitiful. Why the F**k are they insisting on digging their dirty claws into the club at all costs? Why can't they accept a reasonable offer from another group (such as has already been made), and instead put a ridiculous price-tag on the club? They seriously think they are going to walk away from this with hundreds of millions in profit.

These bas**rds disgust me and make me want to puke. The mental image of Hicks doing his interview in front of the TV with an LFC mug is still burnt into my memory.

Can't believe we have to desperately hope RBS tell them to F**k off, but right now it seems like our only chance of getting rid and making a fresh start.

I think we're long past the point of "better the devil you know".

  F**k off Yanks
350 Million. F***ing outrageous.

Get them pair of pricks out of our f**king club now.

David Moores, Rick Parry - I don't know how you pair dare take the seat of a genuine Liverpool fan.

The way I see it - we're pretty fu**ed.  Talk about backing the wrong horse.  We need proper owners.  Men with morals and scruples who can raise the finances, or provide their own, to build a world class stadium for a world class club and not load the burden of debt on to the club itself.

Absolute disgrace.

Just as it was all starting to go so well for us on the field we're all reminded we are owned by two old fashioned cowboys from the Wild West.

Seen this on TLW and pretty much sums it up.

We should have a massive protest to show thw world how we are feeling about this, Im so F***ing furous at what these pair of cu*ts are doing to our beloved Liverpool. What the F**k is going on, honestly i felt like crying this morning when i saw us being dragged through the sh*te again by these two clowns. These haven't got a clue what they're doing. Its time for us to do something a let our voices be heard long and loud. PLEASE GOD SAVE LIVERPOOL FROM THIS.

I for one hope it gets worse!
Then the vultures will really start circling!
because, unfortunately only a savior financial crisis, the likes of the one in the making right now, is the only way we are going to get rid of our two repugnant present incumbents!
I wonder how RBS will view these latest set of figures? with grave concerns I wouldn't wonder!

The two of them must have been rocked to the core by the statement issued by their auditor's, going public with such an unequivocal fashion only illustrates the perilous state the clubs finances are in! we really are on a precipice
Another person at the club with "Chinese writing" in his undies must be Rafa, I'll bet you he had no idea how bad things were financially when he put pen to paper!

Why didn't they sell when they had the chance?

 It is now a big risk for anyone taking over from the useless c*nts, but I bet they still hold out for however may 100s of millions they were asking for - cmpletely unrealistic!!! Hicks and Gillette, sell us, not to make a profit, but to save the club, as if you cared, you would.