Liverpool in crisis – vultures circle Alonso and Mascherano

• zocoss

  5 Jun 09, 10:00

  *LIVERPOOL were facing financial meltdown last night. . . The club's accountants issued a chilling statement admitting there is 'significant doubt' whether the company which runs the Merseysiders can 'continue as a going concern'. Liverpool's parent company Kop Football (Holdings) Ltd, run by American duo George Gillett and Tom Hicks, made a £42.6million loss last year.* Around £36.5m of that is interest payments on the whopping £350m loan they took out to refinance the club. A top City analyst said: "Unless the owners find more money, the club is facing financial meltdown. Not only are the figures bleak, the future is gloomy too. "The more you read through the accounts, the more transparent it is that the owners don't have the resources to meet the targets they've set for next year either. "Everyone associated with Liverpool should be deeply concerned by this set of figures." The devastating news will intensify calls from fans for the US pair to sell up. As things stand, any profits being made on the pitch are being swallowed up by the crippling repayments on the loan. The disastrous figures not only place the club's future in jeopardy, they also have serious side-effects for boss Rafa Benitez. The scale of the financial woes casts a huge question-mark over whether Benitez will have any significant money to spend this summer. He has already been 'blown out of the water' by Manchester City in the race for long-term target Gareth Barry this week. Other big-money targets, like David Silva, Glen Johnson and even Carlos Tevez, look unlikely to materialise this summer. The club's accountants, KPMG, outlined their concerns by saying: "The group has credit facilities amounting to £350m, which expire on 24 July 2009. "The directors have initiated negotiations to secure the replacement finance required by the group and these negotiations are ongoing. "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." Sources close to Gillett and Hicks last night said they re-mained confident of securing the refinancing deal and are also still in talks with possible investors. But only in April the Hicks Sports Group defaulted on repaying loans totalling £354m for his other sports ventures in the States. Before the Americans' £219m takeover in 2007, Liverpool were close to a deal with Arab investors Dubai International Capital. Then, in January this year, Kuwaiti billionaire Nasser Al-Kharafi offered £425m for overall control. But the Americans only want to sell 50 per cent and hopes of a deal collapsed.
• Jffdevil2

  5 Jun 09, 10:02

  pool this year go bankrupt,next year play cocacola football.im loving it

• sg_forum

  5 Jun 09, 10:20

  I think DIC and the Kuwaiti is no longer interested in the club...Liverpool will end up like Leeds if the 2 owners refuse to sell...

• zocoss

  5 Jun 09, 11:02

  I belief there will always be takers... Its just a matter of how much thats all and when... If these 2 present owners leave earlier, it may help the club. But if they delay and continue to own the club for another 3 to 5 yrs with this type of financial problems hanging over their heads... Liverpool could be a mid table club by then... Carragher and Gerrard would have retire or not the same players as they are today by then and they won't be able to find able replacements with the resource they have... Others like Alonso, Mascherano, Torres could be sold for financial reasons or leave for clubs challenging for titles... and in their places, average players that can fit into the club's waged limits... New clubs coming up are Man City and Portsmouth... without any worry for money... and Chelsea still has Roman, while United can depend on their huge marketing strength and strong yearly profits to keep them going... Ansenal, will continue to depend on ways they have been doing these last few years... unearth new talent... to keep their squad strong... A gloomy future for Liverpool... Their most recent accounts showed a profit of £10.2million only, their parent company lost £42.6m, mainly due to interest payments of £36.5m... They can't go on losing $30 over million pounds a year...
• iceFatboy

  5 Jun 09, 11:10

  come on... this is just small change..

  worse come to worse, get the supporters to buy over the club like barca.

  i think this is blown out of proportions..

• Poolman

  5 Jun 09, 12:29

  Originally posted by iceFatboy:

  come on... this is just small change..

  worse come to worse, get the supporters to buy over the club like barca.

  i think this is blown out of proportions..

  
  ya lor ..... it's a question to how much the 2 American fellas wanna to profit or lost selling their shares , taker surely have la .....

  Any Arabs , rich one , to find 400million pounds takeover , is not difficult .

• zocoss

  5 Jun 09, 13:13

  Small change? This is a very serious problem for them... Otherwise their accountants won't come out to say all these... In a way they are also trying to protect their own company's reputation otherwise should things turn bad... They could be seen as not doing their job... Why is it that bad you may ask, its because of the loan taken out by the parent company, (which owns the club) they are losing more money than making just paying on the interest alone... Revenue from the Champions League and Barclays Premier League is being swallowed up to service the parent company's loans. Their most recent accounts showed a profit of £10.2m, their parent company lost £42.6m, mainly due to interest payments... Any profits being made on the pitch are being used up to repay for the loans... They also face a July 24 deadline to refinance their £350m debt... and if they don't get it, who knows what could happen... Worst case scenario... They may go into receivership or the bank they mortgage the club to can take over the club and sell whatever assets they deem good value in the shortest possible time to recoup their money... (mainly players and those highly paid ones). These 2 owners seems like they are prepare to hold on whatever it takes cos of the promised of more money from next years Tv deals... So unless they make a killing in profits with a huge offer from someone or somewhere, they are not going to sell... But the rich Arabs seems to be smarter now... Preferring to go for a cheaper club then spend the money on bringing in star players...
• limpper

  5 Jun 09, 13:23

  the yanks are serioulsy hurting the club. they need to go

• limpper

  5 Jun 09, 13:26

  Liverpool transfer plans rocked by poor finance report

  Liverpool boss Rafa Benitez's summer transfer plans risk being torn up due to the club's financial problems.

  The Daily Mail says only 48 hours after losing out to Manchester City on the signing of Gareth Barry, and with Glen Johnson - another long-term target - expected to join Chelsea, details of their fragile state became clear.

  Owners Tom Hicks and George Gillett were warned that there is "significant doubt on the group's and parent company's ability to continue as a going concern" because of the club's debts.

  Though Liverpool's most recent accounts showed a profit of £10.2million, their parent company lost £42.6m, mainly due to interest payments of £36.5m.

  That will panic the club's supporters, who are seeing their rivals move quickly in the transfer market - and may even unsettle their star players, just as the club seemed to be gearing up to challenge champions Manchester United.

• limpper

  5 Jun 09, 13:26

  New India takeover interest for Liverpool

  Liverpool are the subject of fresh takeover interest.

  The Daily Mail says three representatives of the India-based GMR infrastructure company, who hold the franchise for the Delhi Daredevils cricket team in the Indian Premier League, have met intermediaries acting on behalf of Liverpool's American owners to discuss a takeover.

• limpper

  5 Jun 09, 13:33

  Liverpool transfer plans rocked by poor finance report

  Liverpool boss Rafa Benitez's summer transfer plans risk being torn up due to the club's financial problems.

  The Daily Mail says only 48 hours after losing out to Manchester City on the signing of Gareth Barry, and with Glen Johnson - another long-term target - expected to join Chelsea, details of their fragile state became clear.

  Owners Tom Hicks and George Gillett were warned that there is "significant doubt on the group's and parent company's ability to continue as a going concern" because of the club's debts.

  Though Liverpool's most recent accounts showed a profit of £10.2million, their parent company lost £42.6m, mainly due to interest payments of £36.5m.

  That will panic the club's supporters, who are seeing their rivals move quickly in the transfer market - and may even unsettle their star players, just as the club seemed to be gearing up to challenge champions Manchester United.

• zocoss

  5 Jun 09, 13:47

  *Hicks and Gillett have been scouring the globe to find investors . . The club's turnover was a record £159.1m compared to £133.9m the year before, with a profit of £10.2m. That was reflected by a similar turnover for Kop Football (Holdings) of £164m - most coming from the football club - but the overall loss of £42.6m.* Hicks and Gillett have been scouring the globe to find investors keen on putting money into the club but so far without success. It is not Hicks' only problem - he has said he is prepared to sell a majority shareholding in his Texas Rangers baseball team after the Hicks Sports Group in April defaulted on £325m (525m US dollars) in loans relating to that team and his Dallas Stars ice hockey side. Sean Hamil, a lecturer at the University of London's Birkbeck Sport Business Centre, told Bloomberg: ''Any company, never mind a sports company, which is not able to cover interest from operating activities has three options: refinance, get new equity investors, or sell it to somebody else who's prepared to absorb the debt and start from scratch.''
• Jffdevil2

  5 Jun 09, 15:19

  go liverpool bankrupt go liverpool bankrupt

• youyayu

  5 Jun 09, 15:25

  er what happen?

• youyayu

  5 Jun 09, 15:28

  0.o

  i see

  liverpool is poorer among the big 4 LOL

• limpper

  5 Jun 09, 15:32

  the yanks seriously sucks

• Jffdevil2

  5 Jun 09, 15:35

  not only among the big 4,even wigan is richer thn liverpool.its a matter of time b4 liverpool joins leeds united.and this will shuut up poolman n chrisbenoit and their grandfthers stories.....we won 18 titles & istanbul bla bla bla

• Poolman

  5 Jun 09, 18:24

  Originally posted by youyayu:

  0.o

  i see

  liverpool is poorer among the big 4 LOL

  
  Fundamentally , the 2 yankees did otang the bank those loans they borrowed to finance their purchase of Liverpool .

  But in the whole operations , from TV revenue , Gates receipts , merchandise , we doing ok .

  Those banks has to thank god Liverpool manage to pull through those payments .

  Which banks loan out their money and dun earn interest ???

• Poolman

  5 Jun 09, 18:25

  ...

• Poolman

  5 Jun 09, 18:25

  ...

• chrisbenoit

  5 Jun 09, 19:49

  Originally posted by Jffdevil2:

  not only among the big 4,even wigan is richer thn liverpool.its a matter of time b4 liverpool joins leeds united.and this will shuut up poolman n chrisbenoit and their grandfthers stories.....we won 18 titles & istanbul bla bla bla

  
  eh fuck you you this chao chee bong

• sir ferguson

  5 Jun 09, 21:52

  Just sell Alonso to Real Madrid for 20 million pound. Sell Lucas 5 M, sell Pennant 2 M, sell Babel 10 M, sell Dossena 3 M.

  Get Luca Neil (free), Michael Owen (free).

  Forget Tevez (Can't win Man. City in bidding).

• Poolman

  5 Jun 09, 22:03

  our squad is ok , good enough , we dun buy for the sake of buying ...

  We have priorities in certain department .... the rest not important .

  After Riera's entrance into L'pool , still our midfield not good enough , we have to focus on getting someone on the left to do the break through , SILVA could be the one .

  If Real needs him , and we needs him as well , we have to respect what Silva desire .

   

• Trump_Card

  5 Jun 09, 22:13

  diego capel from sevilla can be a second choice should benitez fail to get silva

• zocoss

  5 Jun 09, 22:22

  *Liverpool in crisis - Madrid woo Silva and vultures circle Xabi Alonso and Mascherano . . Liverpool face the prospect of missing out on their second major transfer target of the week - raising further doubts about their financial muscle heading into the summer market.* Rafa Benitez's frustration at being blown out of the water by Manchester City for the £12million capture of Gareth Barry from Aston Villa is set to be compounded by missing out on versatile Spain star David Silva. The Valencia midfielder, who can play wide on the right or through the middle, has welcomed the advances of Real Madrid after his representatives were yesterday summoned to talks at the Bernabeu. Silva said: 'I do not know about anything that has happened because I have been at my home in Canary Islands and I have not spoken to my agent. 'Valencia should not worry though. The fact that a team like Real Madrid is interested is good for Valencia and for me. Liverpool are also preparing to throw in the towel on a bid to sign Glen Johnson as Chelsea close in on a deal with Portsmouth for their former right-back. Benitez is not only struggling to land his preferred transfer targets, he is also facing a raid on his team for Xabi Alonso - who Sportsmail revealed as also being a Madrid target - and now reports are linking Javier Mascherano with a move to Barcelona. Sportsmail today documented the state of the club's finances. Accountants KPMG LLP warned there is 'significant doubt on the group's and parent company's ability to continue as a going concern' because of the club's debts. Benitez's transfer budget is believed to be as little as £15m, plus anything generated from sales, but that figure is unlikely to be enough to alone sign Silva. Silva's agents, Julio Llorente and Amadeo Rangel, yesterday spent an hour-and-a-half meeting Madrid’s sporting director Miguel Pardeza and general director Jorge Valdano. Valencia are likely to want at least £20m, but are constrained by the need to sell because of debts believed to be about £400m. Liverpool are now bracing themselves for a £22m bid from Barcelona for Mascherano. Catalan newspaper Sport - which is close to the Nou Camp club - today reports that Barca boss Pep Guardiola has discussed a move for the Argentina captain with his director of football Txiki Begiristain, the club's dealmaker. They are aware a transfer could be tricky, particularly if Liverpool do cash in on Alonso, but believe the 24-year-old former West Ham United player is unsettled following reports that his agent offered the player to Real Madrid recently. Barca are considering sweetening a deal with the part exchange of France left-back Eric Abidal, who they believe is a target for Benitez.