Any need to panic?
The parent company of Liverpool FC, owned by Tom Hicks and George Gillett, lost £42.6m in the year to August 2008.
The loss was mainly due to the £36m of interest payments that Kop Football Holdings had to make to service the debt taken on to buy the club.
Its auditors warned that the need to refinance loans by 24 July cast “significant doubt” on the future of the group as a going concern.
But they added the club’s owners were confident they would secure the funds.
The US owners bought Liverpool in February 2007, promising to build a new stadium. (BBC Sport)
I guess this shouldn’t come as that much of a surprise given the financial downturn. There probably isn’t a single investor, company or business that hasn’t registered some sort of loss but the question every Liverpool fan will be asking themselves is will this mean that Rafa has less money to spend this summer?
It is clear Benitez wants to bring in a few new faces in the coming months and whilst he can generate funds by selling a few of his squad players he won’t want to be in a situation where he needs to offload any big names in order to bring in new talent.
What do Reds fans make of this news?