Business dealings in the boardroom net the club’s owners a healthy profit!
Following the recent announcement that Kop Holdings, the parent company of English Premier League soccer side Liverpool, made a pre-tax loss in the year to July 2008 of £42.6m ($69.8m), one of it’s joint owners has sought to plug the gap in it’s finances
George Gillett, who with his fellow American Tom Hicks owns the famous side from the North West of England who have been crowned their country’s League Champions on no less than 18 occasions, has confirmed that he will be selling his 80% share in National Hockey League side Montreal Canadiens back to the family who own Molson brewers.
With the sale said to be worth in the region of £340m ($557.6m), which represents by some estimates a return of virtually 100% on the price that Mr Gillett paid the Molson family for a majority stake in the Canadian ice hockey franchise back in 2001, it will be welcome news in view of the loans, with a renegotiation date quickly looming, which Mr Gillett and Mr Hicks took out with the Royal Bank of Scotland (RBS) and Wachovia to enable their purchase of Liverpool. The London Times indicates that those loans are worth £350m ($574m) and must be renegotiated by a deadline of July 24. The loss made by Kop Holdings in July 2008 was due in larger part to interest payments on the loans of £36.5m ($59.8m). (Digital Journal)
Well this in theory should be very good news for the Merseyside club but I guess the proof will only be in the pudding. If Messrs George Gillett and Tom Hicks have managed to sell off his share of the Montreal Canadiens for the kind of profit mentioned by this source then I am sure the fans are hopeful that a fair portion of that money is used to plug the financial gap at the club and perhaps a little is then handed to Rafa Benitez to make some serious damage in the transfer market.
This transfer window is shaping up to be the biggest ever in terms of money pumped into player investments, and whilst this may seem obscene given the precarious financial state the rest of the world finds itself in, it is even more essential that at this time the Anfield side doesn’t find itself falling behind their competitors.
Having announced the signing of Glen Johnson late yesterday Rafa Benitez will now be looking to pick up 2 or 3 other big names to help bridge the gap between themselves and Champions elect Man United and this task could be all the greater given that Sir Alex has apparently been given the lions share of the £80m accrued from the Cristiano Ronaldo sale.
Either way though this deal will at least steady the ship in money terms and I am sure the supporters will hope that the club can compete more vehemently with the likes of Chelsea and Man City when players come up on the market.