DavePDQ Posted January 25, 2008 Share Posted January 25, 2008 They're raising ?350m for the stadium, to clear the debt and to buy players. The football club has no debt now. However, they're paying ?18m in interest payments every year to the company owned by Hicks and Gillett. Is that the type of "debt free" situation that we're in? If so, what are our annual interest payments likely to be? Probably around ?2m Link to comment Share on other sites More sharing options...
bigwull22 Posted January 25, 2008 Share Posted January 25, 2008 They're raising ?350m for the stadium, to clear the debt and to buy players. The football club has no debt now. However, they're paying ?18m in interest payments every year to the company owned by Hicks and Gillett. Is that the type of "debt free" situation that we're in? If so, what are our annual interest payments likely to be? Probably around ?2m By George I think you've got it Link to comment Share on other sites More sharing options...
DavePDQ Posted January 25, 2008 Author Share Posted January 25, 2008 The name's Dave So we're not in debt, but we're paying interest. There'll be someone along soon to tell us that that's good Link to comment Share on other sites More sharing options...
spennyboy Posted January 25, 2008 Share Posted January 25, 2008 They're raising ?350m for the stadium, to clear the debt and to buy players. The football club has no debt now. However, they're paying ?18m in interest payments every year to the company owned by Hicks and Gillett. Is that the type of "debt free" situation that we're in? If so, what are our annual interest payments likely to be? Probably around ?2m Conmen, total conmen! Worst decision in the history of Liverpool Football Club to bring in these charlatans!! Link to comment Share on other sites More sharing options...
Boris Posted January 25, 2008 Share Posted January 25, 2008 Conmen, total conmen! Worst decision in the history of Liverpool Football Club to bring in these charlatans!! Anyone else see the irony in Scousers being robbed... Link to comment Share on other sites More sharing options...
Fraggle Posted January 25, 2008 Share Posted January 25, 2008 Anyone else see the irony in Scousers being robbed... Ha, quality. At least Stevie Gerrads house isn't the target for once. Link to comment Share on other sites More sharing options...
topcat Posted January 25, 2008 Share Posted January 25, 2008 They're raising ?350m for the stadium, to clear the debt and to buy players. The football club has no debt now. However, they're paying ?18m in interest payments every year to the company owned by Hicks and Gillett. Is that the type of "debt free" situation that we're in? If so, what are our annual interest payments likely to be? Probably around ?2m Acually Liverpool will be a long way from Debt free even if you ignore the debt being taken on by the owners. http://www.ft.com/cms/s/0/1e1bdca0-cb45-11dc-97ff-000077b07658.html So esentially there are two loans happening here. The Club is taking on just over 100 million of debt directly. While the club's owners are taking on about a quarter of a billion. Strictly speaking the owners, who bought Liverpool with borrowed money, are actually just moving their part of borrowing from one lender to another rather than taking on more debt. Like anybody taking over a business the new owners will want to eventually take some profit out of it. The fact that Hicks and Gilbert are placing themselves so heavily in hoc to RBS and Wachovia means that there will be some urgency to produce a steady stream of revenues to meet the interest payments. It's actually some way removed from the UBIG/HEarts Situation where the clubs ownership isn't having to look to an outside creditor and so has more freedom of movement. What it, and the Glazer takeover of Manchester United, does show is that you wouldn't need have millions and millions in cash at your disposal if you want to buy Vlad out. If you're convinced that you could do a better job of running the business than the current owners then all you need to do is persuade Royal Bank of Scotland, Wachovia or someone else that this is the case and then try to buy out Vlad with their money. Link to comment Share on other sites More sharing options...
adso7 Posted January 25, 2008 Share Posted January 25, 2008 “The overall financing is being supported by a combination of owner cash, letters of credit and personal guarantees totalling ?225m, ensuring that the club remains on a sound financial footing,” I am no expert in borrowing of this amount. But as with most business loans you need to have the means to back up your plans. Business assets and personal guarantees are the usual way i think. As the quote above says cash and personal guarantees seem to be the way here. Now buying Vlad out - anyone got assets of ?40m to ensure the bank get paid? Link to comment Share on other sites More sharing options...
super_vlad Posted January 25, 2008 Share Posted January 25, 2008 ?The overall financing is being supported by a combination of owner cash, letters of credit and personal guarantees totalling ?225m, ensuring that the club remains on a sound financial footing,? I am no expert in borrowing of this amount. But as with most business loans you need to have the means to back up your plans. Business assets and personal guarantees are the usual way i think. As the quote above says cash and personal guarantees seem to be the way here. Now buying Vlad out - anyone got assets of ?40m to ensure the bank get paid? When i go home tonight, i'll have a look behind the sofa ! Link to comment Share on other sites More sharing options...
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