Liverpool In The sh*te

[Nig]

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

 

So if I understand this correctly, Hicks and Gillett bought the club in 2007 for 174.1 million + 44.8 million of debts (total of 218.9 million) and loaded the entire amount as debt on the club/the holding.

 

At the end of the 2007/08 season (barely a year after they had bought the club) the debt was at 300 million, so H&G made a massive loss in their first full season as owners of the club (as you'd expect in the beginning, having invested some cash in new players as well). Despite little to no investment being made in the 2008/09 season they have now sustained additional losses of over 42 million pounds (while the club itself generated an operating profit of 10 million).

 

We can quite confidently predict that the debt will have reached around 350 million by the end of this season.

 

So basically, the club has seen very little investment, the promised stadium has not even reached final planning stages and the debt has increased by over 200 million pounds in little over 2 years.

 

The next person buying the club will have to pay around double of what they paid 2 years ago in order for those 2 two to actually make a profit for their trouble. Unless that person is a crazy Arab actively trying to burn money the extra money required will again be loaded on the club in debts, very likely putting the debt figure to around 500 million in the end (again without having even started building the new stadium). And that person would have to do that without any reasonable hope of actually making money off the club in the long term unless he in turn sold it on for a profit a few seasons down the line.

 

[Guest LondonScottish]

Although this looks very bleak for Liverpool, warnings like this aren't uncommon. The club will more than likely keep going as normal without too much of a hitch, if Hicks and Gillett get the refinancing sorted. Remember that Liverpool took in around

[Nig]

Their income is pretty much the same the last few years and still there losing money.

 

The 2 Yanks unlike Chavski's Russian and Citehs Arab, they have no personal wealth, everything is on the never never and as such no bank in this present climate will alllow them to keep remortgaging the Kop on the assumtion that everything will come good in the end.

 

Also, theres no way the new stadium will get the go ahead meaning even less potential to increase their income.

 

They need an Arab sugar daddy sooner rather than later or they're new rivals will be FC United of Manchester

[Red Dragon]

Never mind, next season will be their season

[MMG]

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

 

So if I understand this correctly, Hicks and Gillett bought the club in 2007 for 174.1 million + 44.8 million of debts (total of 218.9 million) and loaded the entire amount as debt on the club/the holding.

 

At the end of the 2007/08 season (barely a year after they had bought the club) the debt was at 300 million, so H&G made a massive loss in their first full season as owners of the club (as you'd expect in the beginning, having invested some cash in new players as well). Despite little to no investment being made in the 2008/09 season they have now sustained additional losses of over 42 million pounds (while the club itself generated an operating profit of 10 million).

 

We can quite confidently predict that the debt will have reached around 350 million by the end of this season.

 

So basically, the club has seen very little investment, the promised stadium has not even reached final planning stages and the debt has increased by over 200 million pounds in little over 2 years.

 

The next person buying the club will have to pay around double of what they paid 2 years ago in order for those 2 two to actually make a profit for their trouble. Unless that person is a crazy Arab actively trying to burn money the extra money required will again be loaded on the club in debts, very likely putting the debt figure to around 500 million in the end (again without having even started building the new stadium). And that person would have to do that without any reasonable hope of actually making money off the club in the long term unless he in turn sold it on for a profit a few seasons down the line.

 

 

 

 

This is tragic.

 

[Crossbow]

The financial boys will not want to hang around for long without - either debt refinancing (ie short term cash in, deeper long term problems) or a club sale - find your local friendly arab as it's not a going concern even at the top of the EPL if those figures are to be believed. A new stadium is a pipe dream without real money and that isn't coming from either of the current owners who as has been pointed out are nominally rich but actualkly busy propping up a house of cards.

 

Scary times for those reds.

 

How much is Gerrard worth?

[sooth_stander]

How does all of this compare to Man Utd's debt, where the Glazers borrowed something like half a billion to take ownership of the club?

[Oklahoma 1903]

Their income is pretty much the same the last few years and still there losing money.

 

The 2 Yanks unlike Chavski's Russian and Citehs Arab, they have no personal wealth, everything is on the never never and as such no bank in this present climate will alllow them to keep remortgaging the Kop on the assumtion that everything will come good in the end.

 

Also, theres no way the new stadium will get the go ahead meaning even less potential to increase their income.

 

They need an Arab sugar daddy sooner rather than later or they're new rivals will be FC United of Manchester

TICK TOCK TICK TOCK

[Country Don]

How much is Gerrard worth?

 

Probably not as much as he thinks he is... but seriously he's bound to be a

[Dynamo]

TICK TOCK TICK TOCK

 

Man United aren't in much better shape, perhaps even worse. You never know but a few seasons of mediocraty (well relative in Liverpool's case ) could see them struggle big time for the cash to even pay the interests!

 

Since the Glazers took over they have paid c