Liverpool FC in severe financial trouble

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

For the time being then I'm going to hold onto the hope that they're playing hardball, putting on a strong public image so that any further offers for the club are as large as they're hoping for.

For a long time I was pleased that people weren't meeting their demands, because the profit Gillett and Hicks were wanting to walk away with is utterly revolting. In the region of £75-100 million each for something they haven't invested their own money in is disgraceful, they disgust me, words can't describe to what extent.

Now though, as the club is spiralling into a very dangerous decent toward bankrupcy, I just want them to get their money, stuff their pockets, and F**k off out of our club as quick as possible. Never to come back.

If one day I have the opportunity to face them: I piss, spit & jerk on these f***in Yankes.

Out of interest, if the Yanks don't met the deadline for repayments, does that mean that the club will be repossessed by the bank?

I hope that investors like DIC - people who actually support the club - can see what these two f**ktards are doing to the club and find it within them to give them the profit they want so they will well and truly f**k off and allow us to move forward financially and expand our club.

I hope it's very soon.

Out of interest, if the Yanks don't met the deadline for repayments, does that mean that the club will be repossessed by the bank?

As far as I am aware that is the case. Just like your home would be repossessed if you didn't keep up the payments.

And I'll say something else.  The official website is like the old communist Soviet Union.  Not a peep out of them.

And I'll say something else.  The official website is like the old communist Soviet Union.  Not a peep out of them.

Isn't there a forum on the official site?

Anyone know if they are letting people talk about this, or censoring?

They'd need about 100 mods working full-time to sort all that out!

As far as I am aware that is the case. Just like your home would be repossessed if you didn't keep up the payments.

And I'll say something else.  The official website is like the old communist Soviet Union.  Not a peep out of them.

Would it really be a disaster is we were to come under the ownership of the bank? I mean, i know they would only sell us off to the highest bidder but anything has got to be better than the Yanks.

Would it really be a disaster is we were to come under the ownership of the bank? I mean, I know they would only sell us off to the highest bidder but anything has got to be better than the Yanks.

If we come under the ownership of the bank, wouldn't that leave us with a points deduction?

Would it really be a disaster is we were to come under the ownership of the bank? I mean, I know they would only sell us off to the highest bidder but anything has got to be better than the Yanks.

Huge disaster. Any profit made by the club belongs to the bank and the bank could sell Torres Stevie etc. Its a disaster

Huge disaster. Any profit made by the club belongs to the bank and the bank could sell Torres Stevie etc. Its a disaster

Cheers Brian. I don't understand all that business milarky. Oh god oh god oh god. How they have really fu**ed up our club.

http://www.skysports.com/tv_show/story/0,20144,12975_5364858,00.html

have a read of this

The club’s net debt rose to £86m in the year to July 31 2008, from £43.9m a year earlier while Kop Football Holdings, the club’s holding company, saw its net debt rise to £299.5m.

£386 million in debt.  And that was 12 months ago.  Probably easily over £400 million now.

Anybody who even attempts to dress that up as anything other than a disgrace needs to remove their head from their anus.

United just sold a shirt sponsorship deal for £20 million a season.

We get £7.5 million from Carlsberg a year and are planning on letting them name our stadium.  Even naming our stadium I bet we don't come anywhere close to that £20 million a season.


Can anybody even imagine what would have happened if the Americans had got their way and brought Klinsmann in for Benitez.  The financial implications of not qualifying for the Champions League would have tipped us over the edge.

Can anybody even imagine what would have happened if the Americans had got their way and brought Klinsmann in for Benitez.  The financial implications of not qualifying for the Champions League would have tipped us over the edge.

Thank f**k for Rafa!!!

The sickening thing here is not one spokesperson, director,owner anyone at all has come out to address us ordinary fans to explain in laymans terms whats going on. Do they think that little of us?

The sickening thing here is not one spokesperson, director,owner anyone at all has come out to address us ordinary fans to explain in laymans terms whats going on. Do they think that little of us?

Like JD said, its like living in Communist Soviet Union.

The sickening thing here is not one spokesperson, director,owner anyone at all has come out to address us ordinary fans to explain in laymans terms whats going on. Do they think that little of us?

They don't think about us at all mate, apart from how they can worm more F***ing money out of us.

I think another protest is due.  But it can't just happen for "oh yeah we'll just go down for a few hours and shout" it's got to last the distance.

We need to show these bas**rds that we're not F***ing around.

Spirit of Shankly address on the situation

SOS and LFC Accounts
Fri 05 Jun 2009


The Spirit of Shankly have studied the information that has been released in the last day relating to the accounts of Liverpool Football Club and its associated companies. The picture is alarming and underlines what we have said from the creation of the Union, namely that Tom Hicks and George Gillett are not fit or proper custodians of our Club.

The accounts show a number of unacceptable issues and we feel it is fair to say that unless action is taken now by the owners and their funders then the Club is sleepwalking into disaster.

The irony is that Liverpool Football Club itself has increased its income and also its profit – what is not surprising though is that the holding company for the football club has massively increased its debt to the point where its own auditors have said that



These conditions, along with other matters explained in note 1 to the financial statements, 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. The financial statements do not include the adjustments that would result if the Group and parent company were unable to continue as a going concern.




This is utterly unacceptable and coincides with the Union launching a campaign against our owners and particularly Royal Bank of Scotland, to see Hicks and Gillett out and a more sensible business model put in its place that relies upon the profitability of Liverpool Football Club being used to service appropriate liabilities and with all profits being ploughed back into the Club and not siphoned off to service debt that was used to purchase the Club in the first place.

Hicks and Gillett’s business model is no longer viable and they should go – the Union’s campaign being launched this afternoon has been planned for some time to coincide with the re-financing decision being taken by RBS. We urge all members and supporters to join with us and use the window of opportunity we have to demand change, and change now!

Tom, George - Watch this space.

No money, No Credibility, No Honesty, No Integrity, No Dignity, No Custodians - Hicks and Gillett out NOW!


Spirit of Shankly

If RBS let them re-finance in July for another 6 months there as guilty as them 2 American clowns, what is going to change in 6 months, the global crisis isn't going to subside in the next 6 months, the debt is going to grow, the stadium is going to be as far as off then as now, if they by some miracle are still owners next summer, I think we will probably be forced into selling off Torres Mascherano, Gerrard etc thats not a worst case scenario if there are still here but probably a reality.

 I feel really sorry for Rafa and for all us fans. We are being bled dry RBS are making £36million a year off us and the Americans are holding on till they can maximise there own profits which is getting less and less likely. They are teaming up trying to make as much as possible off our club giving f#ck all consideration for our future.

These two are clowns.

No statement for the fans, leave us to read it all off sky etc etc.

How possibly the biggest club in world football can be so badly mismanaged is beyond belief. As JD pointed out, our sponsorship deal with Carlsberg just shows how far behind we are when it comes to marketing. From what I've heard it sounds like the yanks plan on taking out another loan to try and cover the dept that we are already in, now I might not have a degree in economics but that is going to leave us with the same amount of debt, just more likely to have even more interest on top of it.

I'm fu**ed about this, Southampton parent company went bust, they get 10 points deduction and are struggling to survive.

To put it simply, unless someone buys us soon then we're screwed.

Time to send in Rafa's boys.

Hang on, the club make a profit...

...but the net debt has doubled.

Liverpool to reveal increased profits at Anfield

Liverpool will reveal increased profits and record turnover in annual accounts due to be published next week, though the club's net debt is understood to have doubled to more than £80m.

Telegraph Sport can disclose that the club's financial results for the year to July 2008 will show a 50% increase in profit before tax and depreciation at £37m, up from £25m in 2006-07 and turnover of £159.1m, a club record.

They are also thought to show that the club's net debt has almost doubled from £43.9m in 2007 to £86m last year. This is largely the result of the refinancing deal struck with RBS in February last year and the club drawing down a £19m loan to help develop plans for a new stadium.

The club and its American co-owners George Gillett and Tom Hicks will argue that the level of debt is comfortably serviced by the club's increasing profitability. The club's debts cost £10m to service in 2007-08, though around £3m of that is thought to be bank charges arising from the re-financing.

The accounts are also expected to reveal that the owners have also injected almost £80m in the club since the start of the 2007-08 season, around £35m of it to finance player acquisitions.

Telegraph Sport understands that Hicks and Gillett provided around £58m in cash and other guarantees to their banks RBS and Wachovia when refinancing their £350m loans last year, effectively increasing their equity stake.

They then provided £12m directly for players in 2007-08, and a further £21.3m last season. It is unclear whether this was fresh capital or drawn from loans secured against Liverpool's parent companies.

Hicks’ and Gillett’s £350m loan from the banks is split between the club’s parent company Kop Football Holdings Limited, which is responsible for £245m, with the remaining £105m secured against the club.

In addition the club is also liable for a £79m inter-company loan, although it cannot be recalled if there is any danger that repaying it would make the club insolvent.

Hicks and Gillett maintain that this financial structure makes Liverpool’s debt position more sustainable than their immediate rivals, and will point to the club’s improving commercial performance as evidence as they seek fresh investment ahead of refinancing talks with the banks in July.

Talks with RBS have been ongoing for some months and it is thought that the bank will issue fresh terms to the Americans in the coming weeks. The owners will be optimistic that these accounts, combined with encouraging performance in the season just ended, will satisfy concerns over the club’s viability.

Any questions will address the owners’ ability to service the debt at the holding company level. Both men have sought to sell portions of their US sports businesses in recent months in order to defend their postion in Liverpool, which now looks to be their prime sporting asset.

The pair are also looking for third party investment to help them pay down debt and finance stadium plans and will hope these accounts help that search.

The increase in revenue was largely due to a 60% increase in the Premier League TV deal but there were increases in merchandise and commercial income in 2007-08.

The clubs is also expecting a boost from its online division Liverpool.tv, which it now owns outright having bought Granada’s 50% stake in March last year. It contributed £5m to profits in 2007-08 and the club is are forecasting that it will generate upwards of £10m annually.

Link

http://www.lfcreds.com/reds/index.php?topic=18231.msg343111#msg343111

But the Hicks & Gillet Quango make a loss, so I am a little confussed here. The Red (blue) collar workers make a profit but the white collar ones make a loss. Surly the CLUB should have the CLUBS proffits to spend, and the Quango's loss, can be payed by the people who are responsible for the lack of payments, and agreeing to the terms of the joke, sorry agreement of the "loan". Again What exactly was the loan for, as them seem to have spent nothing, except on something that had already been payed for, the designs of the New Stadium?

Come on, get out of the club and get out now!!

July 24th

That is their deadline.

If RBS refinance the deal.  If they even have the nerve of doing so.

It's either the potential investors in the club is watching the situation like a hawk.  Or nobody wants to get involved.  We'll soon see.