Most Liverpool supporters were already aware of Tom Hicks and George Gillett’s affinity for sucking the life out of the Anfield club; however, after reading this, it appears that they’ve taken the situation to a whole new level.
That initial loan was replaced in January by a £350.5 million facility with the same banks. At the time Hicks and Gillett were determined to formally load the entire debt on to the football club, but were prevented from doing so by chief executive Parry and Moores, now honorary life president, who invoked a “whitewash clause” that required all board members to agree on debt issues.
The American’s compromise was to forward £105 million to the football club, much of which has been used to buy players, with the remaining £245 million sitting with holding company Kop Football. Combined, those loans, secured at rates estimated at around nine per cent, will cost the club £25 million a year.
That is broadly equivalent to the revenue raised by last season’s run to the Champions League semi-final. With European performance generally representing the difference between breaking even and turning a profit at Anfield, the owners’ decision to suck money out of the club to cover their interest payments leaves Liverpool running to stand still. (Telegraph)
This would be catastrophic for Liverpool. The club is already trying to find creative ways to make money for players; however, if Hicks and Gillett did dip into the coffers to pay loans, then the whole situation really goes pear-shaped. Word coming out today is that G&H are looking for a potential buyer. Whilst they are currently looking at the worst possible time, nobody would be shocked to see a buyer come out of nowhere with the funds to meet their asking price.