£5m budget.

Suarez · Jun 2, 2010

Chrysalis said: ↑

under these new uefa rules you guys seem to love.

isnt owners injecting cash into the player squad illegal?
Click to expand...

It's a bloody pity Owners taking it out isn't illegal too !

Glen14 · Jun 2, 2010

only_paul said: ↑

It's a bloody pity Owners taking it out isn't illegal too !
Click to expand...

Is there any proof that they've taken the money out of the club??
Or did they just maybe pay debt with it??

Suarez · Jun 2, 2010

Glen14 said: ↑

Is there any proof that they've taken the money out of the club??
Or did they just maybe pay debt with it??
Click to expand...

Well mate the best part of £50M for stadium design and drawings, what do you think?

Glen14 · Jun 2, 2010

Fair enough.

They must be some f'king awesome pictures

birkenhead · Jun 3, 2010

The real proof is very simple they bought the club 174m + 44m debt (218m), weeks later they get a loan placing their debt of 350m on to the club, so what happened to the 132m difference?

VivaNedFlanders · Jun 3, 2010

Blinky123 said: ↑

I read on the internet somewhere that it was rumored that, in a newspaper, that Liverpool only have a £5m budget to spend this summer. Do you think this is true?

To be honest, I think £5m would be alright, as long as any money gained by selling some players could be spend on some new players, so if we do sell Torres, Gerrard, etc, we could buy some replacements.
Click to expand...

LUXURY !, we've got it rough, we dream about having £5million to spend, hell we pay Mike Ashley £500+ per season to be treated like shit and make do with free transfers, FREE TRANSFERS, and loans, we get up at three in't morning t.... sorry I appear to have lapsed into "Four Yorkshiremen" mode

VivaNedFlanders · Jun 3, 2010

birkenhead said: ↑

The real proof is very simple they bought the club 174m + 44m debt (218m), weeks later they get a loan placing their debt of 350m on to the club, so what happened to the 132m difference?
Click to expand...

Kerching!, thats what brains Ashley had in mind, only he didn't do due diligence and the worlwide financial collapse hit just at the wrong time, so he and we are both f**ked

warnocksminder · Jun 3, 2010

its not about money or shorts
its these that count
http://www.youtube.com/watch?v=bGzcH5Nfd6w

VivaNedFlanders · Jun 3, 2010

What Rafa wouldn't give for "MacIntyre, Treadmore and Davitt", or indeed "Back In D.H.S.S"

easylen · Jun 3, 2010

I dont blame him leaving. He wont even get selling profits from players going out so he will have to buy championship quality

Kop · Jun 3, 2010

Chrysalis said: ↑

under these new uefa rules you guys seem to love.

isnt owners injecting cash into the player squad illegal?
Click to expand...

I don't want them to put money in. I want them to stop taking money out.

Glen14 said: ↑

Is there any proof that they've taken the money out of the club??
Or did they just maybe pay debt with it??
Click to expand...

While "senior sources" at the club (Christan Purslow) try to facilitate a smear campaign against the manager, pretend everything is rosy at the club and briefs the press to headline the Rick Parry pay off on the day the club's financials are tactically released on election results day; here's what's really going on at Liverpool Football Club:

The figures released on Friday 8th May 2010 indicate that Liverpool FC is in net debt to the tune of £351m; an increase of £52m from last year’s figure.

A total of £233.996m is owed to RBS, in addition to an inter-company loan of £144.441m owed to “Kop Cayman”; a company owned by Gillett and Hicks based in the Cayman Island for tax reasons; a company that have loaned Liverpool FC £144.441m at an interest rate of 10%. This is the “own money” that Gillett and Hicks claim to have put into the club. In reality, they’re just charging the club 10% interest for lending that money through an offshore limited liability company that they aren’t even personally liable for – Liverpool FC are.

Liverpool FC are not paying the interest off on that £144.4m however. It is being charged as a “compound interest”, meaning the interest isn’t paid, but is instead “rolled up” to the grand total. For example, this year (if I’ve got this right):

£144.4m @ 10% interest = £14.44m payable this year.

Instead of paying that £14.44m, it is rolled onto the total making the outstanding debt owed to Kop Cayman £158.88m. The following year this is then charged at a further 10% interest:

£158.88m @ 10% interest = £15.88m payable next year.

Instead of paying that £15.88m, it is rolled onto the total making the outstanding debt owed to Kop Cayman £174.76m. The following year this is then charged at a further 10% interest:

£174.76m @ 10% interest = £17.76m payable next year.

Instead of paying that £17.76m, it is rolled onto the total making the outstanding debt owed to Kop Cayman £192.52m etc etc etc...

The debt soon spirals out of control, as you can see; and don’t forget, this only concerns the £144.4m owed to Gillett and Hick’s Cayman Islands company – it doesn’t concern the huge £234m owed to RBS.

The financial figures released last week are for the 2008/09 season.

Those figures declare the club made a loss of around £52m for that year, due to the interest repayments on the loans and another £22m spent on the new ground; on what that was spent on we have no idea. There’s nothing to show for it anyway – and the total spend on the new ground now exceeds £50m. To put that into perspective – Sunderland managed to build the 48,000 seat Stadium of Light for a lot less than that. We have a few fences up at the back of the Anfield Road End!

Anyway – we made a loss of £52m that year despite finishing 2nd in the league and reaching the latter stages of the Champions League. The accounts also declared a profit made on player transfers (despite Purslow telling us we don’t need to sell players to balance the books and service debt, and Rafa being accused of wasting millions on players – the accounts prove otherwise).

What are next year’s figures (which will reflect the financial state we’re in today) going to look like with a 7th place league finish and an early elimination from the Champions League? We will also have an increased debt to service as explained above.

Then what about the figures for the next financial year when there’s no Champions League money at all coming in?

While the current owners are in place, we are going to continue to fall further and further into debt. We cannot meet the repayments on the loan as it stands now, and with our revenue due to fall with the lack of Champions League football, we’re on the brink of going into administration.

Anyone with hopes of making any signings in the summer or any future transfer windows needs a reality check. We are going to be very lucky to be hold onto the players we’ve got, never mind being able to bring anybody else in.

Gerrard and Torres don’t want to leave because they don’t like the manager (Purslow is feeding this story to the media to whip up the “Rafa Out campaign”); they want to leave as they know there is zero chance of any new players of any quality arriving at the club in its current state. They also know there’s zero chance of any top class manager coming to the club if Benitez decides to walk or is pushed; no manager worth his salt would come to work at the club under these conditions. They know the club is only going one way.

Until Gillett and Hicks are removed from the club, we’re only going to decline. It really is as simple as that. Nothing else matters.

And remember – these debts haven’t been accumulated through overspending in trying to buy success and compete like was the case at Portsmouth, Leeds and various other clubs – they are entirely generated through debt loaded onto the club just so Gillett and Hicks can own us and bleed us dry with expense claims, management fees, arrangement fees for every refinance deal and wasting over £50m of the club’s money on a non-existent new stadium.

This isn’t the result of bad individual club management as Richard Scudamore of The Premier League claims; it is the result of a leveraged buyout that has loaded the cost of buying the club onto the club to repay. Something The Premier League, The FA, UEFA and FIFA should be doing everything in their power to prevent ever happening again.

2007: £44m debt (£3m per year to service)
2008: £350m debt (£36.5m per year to service)
2009: £378m debt (£40m per year to service)
2010: ???

Those are the levels of debt on the club, with it being only £44m before Gillett and Hicks bought the club. Therefore the club’s profits were able to be invested back into the squad, allowing us to compete on the pitch. We’re now crippled by debts we cannot service, when that £40m leaving the club each year in interest repayments should be being spent on new players.

£76.5m has left the club in interest repayments alone in the past 2 years – and in that time – the manager has not spent a single penny on new players. It’s been a sell to buy policy, with profits being made on transfers in the past few transfer windows as the books needed to be balanced; all while the clubs around us are spending to strengthen. How can we be expected to compete under those conditions?

The debt is growing with every passing day. As a result of the lack of investment in the squad (as well as bad luck with injuries / poor decisions / players out of form etc), we’re paying the price on the field with declining performances which will therefore reduce the club’s revenue even further – giving us even less money to service increasing debts. A vicious circle. It’s unsustainable.

Liverpool FC is paying £110,000 every single day in interest repayments to service a debt we should never have in the first place. That’s £110,000 a day of the club’s money that me and you generate, that we should be seeing spent on new players or developing the club; instead – we are standing back and watching the club being raped in front of our very eyes.
Click to expand...

XL · Jun 3, 2010

I can confidently say that under these American owners, I believe we will be relegated within 5 years. £5m to spend every 4 transfer windows is less money than Wolves, Burnley, Stoke City etc spend.

It's only going to be a matter of time until our decent players leave. They will be replace by free transfers. We once said we can't compete with the likes of Man Utd and Chelsea. Now we can't compete with Man Utd, Chelsea, Arsenal, Man City, Spurs, Villa, Birmingham, Everton, Stoke City, and even Wolves. Wolves are planning to spend £7m on ONE signing. That's more than our total transfer budget!

Protest tonight at Anfield 6pm! Not about Rafa - about the owners!

VivaNedFlanders · Jun 3, 2010

XL said: ↑

I can confidently say that under these American owners, I believe we will be relegated within 5 years. £5m to spend every 4 transfer windows is less money than Wolves, Burnley, Stoke City etc spend.

It's only going to be a matter of time until our decent players leave. They will be replace by free transfers. We once said we can't compete with the likes of Man Utd and Chelsea. Now we can't compete with Man Utd, Chelsea, Arsenal, Man City, Spurs, Villa, Birmingham, Everton, Stoke City, and even Wolves. Wolves are planning to spend £7m on ONE signing. That's more than our total transfer budget!

Protest tonight at Anfield 6pm! Not about Rafa - about the owners!
Click to expand...

Chuck in Sunderland too then, Cribbins will have a few bob to spend.

brassneck · Jun 8, 2010

Blackpool won't, so at least you won't finish bottom. Any club that went with the greed is good policy deserves to be in it right up to their necks. Its the supporters I feel sorry for. Long after ANY Manager, player, coach or whatever, has left a club...the trusty, supporter is still there in the pissing down rain, supporting his / her club.
I reckon it should be very simple. Bring your bank book. Hand it over let the club go and stare at your huge pile of money, actual real money. Hand it over then you can have the club. So many of these "sales" and people acquiring clubs is done on phantom cash.....look at Pompey. Then youre talking about a club being raped.

Pete the Rover · Jun 8, 2010

We have about 2 bob, so more than us.

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