Liverpool FC in severe financial trouble

I'm pretty sh*te at financial stuff so forgive my ignorance but reading the BBC article on this subject it says that the losses were of August 2008 not 2009. The cowboys paid £36.5million pounds in interest alone!!!

The quote below is taken from The Times so i'm assuming it's reliable, the link is here for anyone who wants to read the article in full.

http://www.timesonline.co.uk/tol/sport/football/premier_league/liverpool/article6433469.ece

"The Americans have until July 24 to refinance their credit deals with Royal Bank of Scotland (RBS) and Wachovia and are hopeful of securing at least another six-month extension, which would give them breathing space."

"There is an acceptance within Anfield that the club are not generating enough money to cover the interest payments of Kop Football (Holdings) Ltd, the club’s holding company. Despite the announcement of a record turnover of £159.1 million and a pre-tax profit of £30.2 million, the club’s net debt — not including that of the holding company — almost doubled from £43.9 million to £86 million. Kop Football (Holdings) Ltd made a pre-tax loss of £42.6 million, with its net debt rising to £299.5 million."

Obviously the current financial climate isn't helping in anyway, shape or form either.

Some financial expert on Sky sports says she has looked through the details and is telling us 'NOT TO WORRY' !, as in big refinancing deals this is normal even though the figures look alarming. Jesus!

Some financial expert on Sky sports says she has looked through the details and is telling us 'NOT TO WORRY' !, as in big refinancing deals this is normal even though the figures look alarming. Jesus!

Why would we not worry? What kind of a stupid statement is that?

Were the new stadium currently under construction I could understand the point that we could be passing a difficult period, but with the knowledge of a much improved income through ticket sales on the horizon.

But we're in a far worse position than that. The stadium isn't being built, but the owners have already taken out a loan to finance a part of it. Business sense? : We're paying interest for the stadium construction without actually building it. Pissing millions away, millions that could be digging in Stanley Park, paying wages, improving the Academy and buying world-class players.

The figures look alarm because the situation is not just stagnating, it's getting worse with each new financing deal.

I think the idea of "not worrying" is a bit like a ostrich burying it's head in the sand in a moment of danger.

They need to sell up - they can't handle it and are going to burn down Liverpool FC. They should've sold earlier than this but they are too money hungry! They don't understand the importance of the club to its supporters and don't understand what the consequences of this could be.

Its an absolute disgrace.

Some financial expet on Sky sports says she has looked through the details and is telling us 'NOT TO WORRY' !, as in big refinancing deals this is normal even though the figures look alarming. Jesus!

I distinctly remember Leeds Utd fans being told 'not to worry' as well... 

I distinctly remember Leeds Utd fans being told 'not to worry' as well... 

Totally agree lads, its giving me nightmares this .

Let's just hope the money generated from sales will go into the transfer fund instead of being used to pay off some of the debt....

F***ing great news to wake up to this.

I'm shitting it... should I be?

I think we can keep the brown trousers in the wardrobe until mid-July when we find out if these 2 jokers have succeeded in re-financing.

This is really pissing me off, they run us as a business by setting the club up (not them)with a chain around the clubs neck. , Get you gone back to your own land and take your F***ing debt with you....

we are well and truely fu**ed

theese clowns are bringing us down just to try and make a profit

the sooner they F**k back off to there baseball or whatever they have the better

What those two are doing is basically getting a tenner out using one credit card to pay the minimum payment on another. They're like any scally work/debt shirker standing in front of me at the cash machine trying about 7 different credit cards to see which they can get money on for free so they don't have to go and earn it.

And they tried to make out all along from day one that they understood our club and us and our history and what we stand for. Well they obviously don't, because one of the things we hold closest to our chest is dignity and pride. And this is being stripped away layer by layer until we will end up being a laughing stock.

I hope we don't end up having to sell a load of players to make some of this debt back. The people who want to see reserve players in every game might not have to go to the reserves games soon.

Sad state of affairs that makes me very very angry.

Could this actually ruin the club?

Or aren't things as bad as made out to be?

Can we start a petition to kick the cu*ts out?

I'm no financial guru, have no clue of what the F**k is actually going on in the finances of Liverpool FC. However, I read in a local paper that among the big four clubs, there is a debt of 2 billion GBP. Considering we only have 300 million, thats pretty good as compared to the other 3 clubs.

Could this actually ruin the club?

Or aren't things as bad as made out to be?

If the debt is with Kop holdings ltd then Liverpool football club should be ok with the exception of a possible points deduction

If the debt is with Kop holdings ltd then Liverpool football club should be ok with the exception of a possible points deduction

WHAT. FOR FUCKS SAKE.

So basically we could lose our chances of winning the title next season due to a points deduction?

WHAT. FOR FUCKS SAKE.

So basically we could lose our chances of winning the title next season due to a points deduction?

Well only if bankruptcy is declared by the 2 wa**ers

The end of the last season was great, for once I felt really optimistic for the future, everything was going well, we were talking of transfers and who will be here to help us toward the goal we all crave, and now this.

Who is going to sign for a club that don't look if they have two Pennie's to rub together, what are you two Americans doing here, you have no money, you have no care for the L'pool community in the wider sense, and it's been plain to all from day one that you don't give a dam for us as a club.

You Yanks are bad owner's, plain and simple.

So sell the club you were hoping to make a fortune out off, the recession as made sure you will not achieve that goal, so sell up now before this great club has it's name dragged through any more mud. FOR THE LOVE OF GOD GO AND GO NOW...........

If the debt is with Kop holdings ltd then Liverpool football club should be ok with the exception of a possible points deduction

Look at Southampton their 'parent company' went bust and they got the points deduction.  Also, if I remember rightly from last week Liverpool FC themselves are in £82 million of debt (doubled from the year before).

Also if we got into financial trouble and were taken out of the UEFA CL then it would be game over in my opinion.  We cannot afford to lose that amount of cash.  

The basic facts are these - we can't even afford to cover the interest on our loan - never mind pay off £350 million.  

Imagine if your mortgage payment was 10% more than you earned. How long are you going to be able to keep that house for? And where are you going to find money to pay for food (or in our case players).

Finally, all of these figures are from 2008.  We have been paying ridiculous interest payments for a further 12 months at a cost of probably another £40 million.

Personally I am exceptionally worried - worried because anybody who might want to buy LFC can probably now think - we can buy this for a cut price fee off RBS when they take over.

These two individuals will go down in the annals of Liverpool FC history as the most repugnant men ever involved with the football club.

Well only if bankruptcy is declared by the 2 wa**ers

What would be the interest for them to declare Kop Holdings Ltd bankrupt?

I'm no bank manager or financial advisor so correct me if I'm wrong, but wouldn't the club then be in the hands of RBS, and any money made by it's sale to clear the debt would go directly to the bank and not the owners.

To put it more clearly, whilst they wouldn't lose money, if they declared bankrupcy they wouldn't gain anything either?

The way I understood it they either have to stick by the club and hope one day to make it create enough profit for them, or sell to a third party to clear the debt and (they've proven it more than once) get a hefty payoff.

I appreciate there is also the possibility of someone else buying some of their shares off them whilst they retain control, but I have more or less discounted this as I find it very, very unlikely they'd find someone that stupid.

Personally I am exceptionally worried - worried because anybody who might want to buy LFC can probably now think - we can buy this for a cut price fee off RBS when they take over.

My only hope in this is that (fingers crossed) anyone interested in buying the club needs it to be successful to generate money, and waiting for the club to have a 30 point deduction and therefore no CL footy for at least another year could be seen as bad business?

It does seem less likely than them waiting to save (ballpark figure) £100-200 million if the club was declared bankrupt, unfortunately.

Have I mentioned they're tw*ts yet? tw*ts.

My only hope in this is that (fingers crossed) anyone interested in buying the club needs it to be successful to generate money, and waiting for the club to have a 30 point deduction and therefore no CL footy for at least another year could be seen as bad business?

It does seem less likely than them waiting to save (ballpark figure) £100-200 million if the club was declared bankrupt, unfortunately.

Have I mentioned they're tw*ts yet? tw*ts.

They're definitely solvent so they would lose out in a bankruptcy claim. All there books would be looked at, baseball and whatever else they're into as fas as I know

It's a total and utter mess to put it as nicely as possibly.

We're quite possibly the biggest club in England, one of the biggest names around world football and we're in this mess. The official "owners" of the club haven't got a clue, simply because they couldn't afford one, the rest of the board seems to be made up of mindless F***ing idiots who nod and smile and the entire club from boardroom downwards is suffering because of it.

Our finicial troubles have been well documented for about two years now and it's got to a stage where the club's future is balanced on a knife edge. Any money of any sort that comes into the club will go to repaying debts that the club didn't want to take out in the first place and as always in these situations it'll be fans who are asked to pay the lion share. Ticket prices, matchday programmes, steak pies, replica shirts, scarves, socks, coats and anything else with our famous crest on it will rise in price.

Although I disagreed a few weeks back with JD, I've now gotta admit (through gritted teeth mind ) that he was right about Torres' contract. In the position we're in, we can't really afford to go and give extra wages especially when the length of the contract hasn't changed. It's put more of a burden on the club which is what we don't need at this moment in time. As for other players, well I wouldn't be surprised to see a mass exodus this summer with quite a few of the first team squad being shown the door just to try and find some money from somewhere.

The banks are skint. It's as simple as that. They haven't got any money to lend to our owners if they wanted to, which I suppose is a good thing because it means they can't put more debt onto the club. I still can't see them selling though, they seem set in stone to take this club to it's bare F***ing bones. After the sh*t they've put up with, going as far as death threats at one point, I'm not surprised they're looking to F**k this club up either. They know exactly what they're doing and couldn't give a sh*t because they'll go back to their American homes without a care in the world for Liverpool Football Club.

One person who doesn't deserve to get off scot free is David Moores. It was him who sold us down the river to these two con artists. Whether he expected it to turn out as bad as it has is irrelevant. Even at the time when he sold us to the Americans, it was obvious DIC were the obvious choice of future investors but Moores sold his soul for an extra 8 million quid and a pack of F***ing lies. How he and that slimy c**t Parry have the nerve to show their faces at Anfield is still beyond me and how do they still manage to get out alive?

It's a sorry state of affairs and one that could drag on for a few weeks, months and possibly years longer.