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  • A Yahoo! User Jan 27, 2008 21:20 Flag

    .........LFC in Debt.........

     

    The Facts..........

    ..''Hicks, and fellow co-owner George Gillett, are now focusing on taking Liverpool forward after completing their £350million refinancing package.

    Of that, £105million will be debt tied to the club - £60million to kick-start the building of a new stadium and £45million for future transfers. '' (teamtalk)

    questions that remain.
    1. Over what period of time is the package AND the 45M for transfers, that could be 5 years.
    2. How are you going to find the remainder of the cash for the stadium.
    3. why is everyone so excited about the stadium plans, they in fact a downgrade from what everyone got so excited about before.
    4. Are you all happy with the yanks now....

    .....is the future all bright and rosy again?????

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    • Sean, My bet is Hicks may have bought some time with what is going on, but its going to take time, and much more action to win back the fans. For many fans, I'm sure they will never trust him again. For me its time for action, but until I see that action, I'll be very wary of what he says. As for your questions:

      1. I believe the new loan is over 18 months, so this is transfer money for next season. With sales, maybe a total net budget of around 60M will be available. Not as good as Chelsea and Man U funds, but could be worse.

      2. God knows on how the rest of the stadium gets finananced. I'm guessing as he's already talked to DIC about a minority stake to raise capital funds, he'll be doing that again over the next 18 months.

      3. Yes its a downgrade from the original proposal, but from the plans published the outside is very much the same, and the seating capacity has gone up. Got to assume the price went down by controling construction costs, and limiting some fixtures in the executive suites (not such a bad thing). Eitherway, from the plans at least, looks like a heck of a stadium that will more than rival OT or Emirates. Think its something to get excited about, but got to admit Tesco Park looks nice too!

      4. As I said before. Still don't trust them, but think they've bought themselves some time. Actions speak louder than words, so time will tell. I'm not happy with debt, but it could be worse. You've compared it with Leeds, and I don't think we go that far.

      I don't like the borrowing to buy players, but don't have much of an issue with the debt paying for the stadium. Fact is that is a real asset that will provide a long term income, especially with the increase from 60K to 71K.

      I'd say the future is partly cloudy!

      • 3 Replies to dsteer_lfc_68
      • I feel if we dont get that 4th spot we very well maybe looking at a situation not too far removed from the Leeds meltdown. I wish we'd have gone with DIC when we had the chance. How one organisation can take months in sorting out its bid can be ditched in favour of another that took only days beats me. Greedy boneheads Moores and Parry dun us for a little extra cash in their own pockets. I remember when the Moores family pulled the plug on Everton and the struggle they had to buy players. Decide in haste, repent at leisure!

      • d_steer DIC have confirmed that they don't wanna be bit players in our club they wanna own LFC. They've not given up on buying LFC outright just yet.. so despite Hicks saying "I've no intention of selling to DIC or anybody else" then it could be a simple matter of wait & see..

      • As I understand it the deal is as it stands.. but Hicks has said that he may well refinance again as he sees fit.. What bothers me though is that when they bought LFC they assured every1 that they'd not put any debt onto LFC at all.. so yes it concerns me that they've broken their word on a fundemental thing like that.

        What else are they gonna break their word on? If they've earmarked £45m for transfers is that £45m a season? If it is then we're gonna be up their with the likes of Chelsea if however it's over 5 yrs then £45m is a pathetic some of money bearing in mind our rivals will be spending £45m or more on transfers..

        I read on the LFC website that Hicks understands the transfer market and whats expected. Well if thats so then he'll have to understand that £45m+ sales of players, is ok to spend if it's just over the summer period but if it's the yrs spending total for the season then we'll still be playing catch up and still have to sell b4 we can buy.. which I hoped was a thing of the past unless it's to bring in some big name player/s?

    • Answers to your questions:

      1) 18 months
      2) F*ck knows
      3) 71,000 capacity isn't too bad, 2nd biggest in the country, and they are impressive plans even if they are a downgrade
      4) No - the lying bastards have reneged on pretty much every promise they made.

      If you look at the numbers, they are still £300 mil short, and that is without a transfer fund. We need about £100 million spent on that team at least. Look at United, they win the league and spend £70 million - we do bugger-all and spend a net £15 million. NO chance of realistically competing!

    • No the its not all bright and rosey, as we not playing well enough in games. The stadium looks impressive. Very excited when it eventually starts to build. Looks fantastic, completely different and unique to any other stadium, cant imagine what it will look like in the flesh.

      Yes the debt is a worry but hopefully its controllable and can be paid off. 45MIL is for the summer budget. Hopefully we sell players who are not good enough, so the balance of our budget can be levelled. The stadium is a total upgrade from anfield so I dont know why you are saying that, if we went with the first designs we would be in more debt and people like you, would point out that our club is in trouble like what you are doing now.

      We have just been brought back down to earth again us liverpool fans, we realize that the players are not good enough to win the prem, rafa hasnt been good enough, and the owners havent given the promises they have made yet. NOW THEY ARE FACTS.

      Got a problem Sean?

    • So really their spending isn't that much different to LFC's?

    • From wikipedia "On 2 June 2006, Chelsea, Manchester United and Lyn Oslo reached a settlement to resolve the future of the player. Obi's registration was to be transferred from Lyn to Chelsea; Manchester United agreed to terminate their option agreement with Obi. Under the terms of this agreement Chelsea agreed to pay Manchester United £12 million, half paid upon the finalisation of the contract and the other half in June 2007, and Lyn £4 million, half payable immediately and half in June 2007. As a result of this settlement, all claims in this matter were withdrawn."

      We thought we'd signed him in the 2005/06 seaon but he was "sold" to Chelsea in the summer transfer window before the 2006/07 season, so you are wrong about that I think. Apparently we'd agreed to sign him from Lyn Oslo for £4m, so that figure comes off the accounts for the 2005/06 season.

    • What about Vidic 7 million and Evra 5.5 Million both signed in the January window thats two more they be others.

    • Fair enough.

    • Well people do the same when the go on how much Torres cost us..

      His transfer fee was £26m but because we did a deal with Atletico Madrid and included Luis Garcia in the deal Fernando Torres actually cost us £20m approx.. and with other players we sold and bought in our Transfer spending wasn't that big in the summer despite what the media reported!!

    • If thats the case then it was also the 05/06 season when United sold Jon Obi Mikel he signed for Chelsea on the 03-06-2006 so take that 12 million away that way just saying the situation isn't as rosey as its being painted!

    • That was in the 2005/06 season when we bought Vidic and Evra.

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