Liverpool In Profit But Debt Almost Doubles Up

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Raeser	Liverpool In Profit But Debt Almost Doubles Up	Lead	[-]
Posts: 981 (01/06/09 04:14:58) Administrator Reply Quote More My Recent Posts Message Me Connection Blocking Invite Ignore User's Posts	Tags : None LIVERPOOL IN PROFIT BUT DEBT ALMOST DOUBLES UP May 30 2009 by Tony Barrett, Liverpool Echo Add a comment Recommend LIVERPOOL Football Club's debts have almost doubled to £86m according to its latest financial results, despite returning to profit following losses the previous year. The club's annual accounts will reveal a pre-tax profit of £10.2m for the year to July 31, 2008, an improvement on the previous year's loss of £21.7m. However, the accounts will also show that net debt soared from £44m to £86m during the same period, despite an increase in revenue across the board. The results are due to be posted with Companies House by today in keeping with UK company law and though both revenue and profits show clear growth the increasing level of debt will be a concern to Liverpool's fans. Turnover has shot up from £133.9m in the previous year to £159.1m mainly as a result of the lucrative TV deal which the Premier League secured with leading broadcasters Sky and the BBC. But with matchday and commercial income both also having gone up it is clear that Liverpool's revenue streams are on an upward curve. The club's net spending on players went up from £22m to £28m due to the recruitment of Javier Mascherano, Diego Cavalieri, Andrea Dossena, David Ngog and Robbie Keane. The net spend does not reflect the full transfer fees agreed with other clubs in transfer deals, it merely shows the initial outlay and downpayments made to secure the transfers. The sales of Peter Crouch, John Arne Riise and Momo Sissoko brought in £24m and the net value of Liverpool's squad soared from £100m in the previous year to £130m. Interestingly, the report also reveals that owners Tom Hicks and George Gillett injected £58m into the club. The ECHO understands that £12m of this was used towards player acquisitions while the bulk of it was provided according to the refinancing agreement secured with the Royal Bank of Scotland in February 2007. Hicks and Gillett are due to refinance again next month but sources indicate they are likely to be given a six-month extension to their current loan arrangement. Meanwhile, Liverpool have stepped up their search for a replacement for outgoing chief executive Rick Parry. Recruitment specialists Odgers Berndtson have been appointed to head hunt Parry's successor and they have now placed an advertisement on their official website as they look for the right person to fill the role. According to the advert, a "significant package" is available to the successful candidate as Hicks and Gillett look for someone who can "give outstanding leadership and clear direction". *"For those of you watching in black and white, Liverpool are the team with the ball"*
Socratease1		#1	[-]
Posts: 2816 (01/06/09 17:05:59) Systonizo Reply Quote More My Recent Posts Message Me Connection Blocking Invite Ignore User's Posts	The ECHO understands that £12m of this was used towards player acquisitions while the bulk of it was provided according to the refinancing agreement secured with the Royal Bank of Scotland in February 2007. Hicks and Gillett are due to refinance again next month but sources indicate they are likely to be given a six-month extension to their current loan arrangement. Meanwhile, Liverpool have stepped up their search for a replacement for outgoing chief executive Rick Parry. Recruitment specialists Odgers Berndtson have been appointed to head hunt Parry's successor and they have now placed an advertisement on their official website as they look for the right person to fill the role. According to the advert, a "significant package" is available to the successful candidate as Hicks and Gillett look for someone who can "give outstanding leadership and clear direction". Should I apply? The only good is knowledge and the only evil is ignorance. Socrates
Raeser		#2	[-]
Posts: 989 (05/06/09 03:27:08) Administrator Reply Quote More My Recent Posts Message Me Connection Blocking Invite Ignore User's Posts	Gillett and Hicks hit by £43m loss Liverpool owners' holding company deep in the red from servicing £350m loan By Martyn Ziegler Friday, 5 June 2009 Liverpool's parent company owned by Tom Hicks and George Gillett suffered a £42.6m loss last year, mainly because of interest payments on the debts the Americans took on to buy the club. In the annual accounts released last night, Liverpool's accountants have also warned that remaining uncertainty over refinancing the £350m debt before the 24 July deadline "may cast significant doubt on the group's and parent company's ability to continue as a going concern". Although Hicks and Gillett say they are confident of securing a refinancing deal, the figures reveal that the financial success of the football club is being swallowed up by the cost of servicing the parent company's loans. The accounts for the year ending July 2008 showed Liverpool made a £10.2m profit but the parent company Kop Football (Holdings) Ltd made a substantial loss of £42.6m, largely as a result of interest payments totalling £36.5m. The clubs accountants KPMG LLP also expressed a warning in their notes in the filed accounts. The accountants said: "The group has credit facilities amounting to £350m which expire on 24 July 2009. The directors have initiated negotiations to secure the replacement finance required by the group and these negotiations are ongoing. "These conditions... indicate the existence of a material uncertainty which may cast significant doubt on the group's and parent company's ability to continue as a going concern." The club's turnover was a record £159.1m compared to £133.9m the year before, with a profit of £10.2m. That was reflected by a similar turnover for Kop Football (Holdings) of £164m - most coming from the football club - but the overall loss of £42.6m. Hicks and Gillett have been scouring the globe to find investors keen on putting money into the club but so far without success. It is not Hicks' only problem - he has said he is prepared to sell a majority shareholding in his Texas Rangers baseball team after the Hicks Sports Group in April defaulted on £325m in loans relating to that team and his Dallas Stars ice hockey side. Sean Hamil from the University of London's Birkbeck Sport Business Centre, said: "Any company which is not able to cover interest from operating activities has three options: refinance, get new equity investors, or sell it to somebody else who's prepared to absorb the debt and start from scratch." *"For those of you watching in black and white, Liverpool are the team with the ball"*
Socratease1		#3	[-]
Posts: 2817 (07/06/09 17:41:26) Systonizo Reply Quote More My Recent Posts Message Me Connection Blocking Invite Ignore User's Posts	Raeser wrote: Martyn Ziegler wrote: ''... or sell it to somebody else who's prepared to absorb the debt and start from scratch." ...and they will be...? Refinance, new equity investors or somebody else to absorb the debt from scratch - according to dear youngish Sean Hamil, not related to the Mark Hamill http://www.imdb.com/name/nm0000434/ of Star Wars fame! It does feel as though we are going around in circles does'nt it? The only good is knowledge and the only evil is ignorance. Socrates