LFC SOLD to NESV.

[Terrier]

Liverpool board would block mortgage attempts

By Harry Harris, Football Correspondent

September 7, 2010


Liverpool's owners George Gillett and Tom Hicks attempted to refinance their loans this summer by mortgaging the club's remaining assets - the stadium, training ground, players and guaranteed TV revenues.

There are fears the American owners might attempt another refinancing deal ahead of the October 6 deadline to repay £237 million owed to Royal Bank of Scotland, plus the £60 million of additional fees run up since April.

But the rest of Liverpool's five-man board would - once again - legally block any attempt to use the players or stadium as 'assets' to raise a mortgage to pay off existing debts. Any refinancing will be opposed by the board who can outvote Hicks and Gillett 3-2, but the Americans might issue a legal challenge.

At present, the £40 million annual interest repayments come directly from club profits but ESPNsoccernet has learned that the debts are not loaded against the stadium and players.

When Hicks and Gillett tried to find a new £290 million 'mortgage' using the stadium and players as assets a few months ago, the board threw out the proposal and took legal advice to ensure that they were within their rights to do so.

With the October 6 bank deadline rapidly approaching, Hicks and Gillett stand to lose their stranglehold on Liverpool if RBS chooses to take over the club and hand it over to their asset recovery experts to sell as a distressed asset.

An RBS effective takeover of the club from the October 6 deadline would meet with Premier League approval. Liverpool have also informed the Premier League and UEFA that they have set aside financial measures to ensure that they can continue to pay the £8 million-a-month wage bill and fulfil their fixtures this season.

When asked if the club could still afford their substantial wage bill, a spokesman said: "Liverpool FC has prudent working capital facilities that allow the club to make proper provision for outgoings as and when they arise. These working capital facilities are totally satisfactory to both the Premier League and UEFA."

The annual wage bill in the 2008-09 accounts was £90.8 million and this year the figure will be around the same, but for the first time Liverpool have dipped into the red.

When asked whether the crippling £40 million interest repayments which wipe out all operating profits are paid monthly, putting a strain on the club's cash flow, the response was that, as such detail is not a matter of public record, the club have declined to answer.

However there are fears that the club is heading for financial meltdown unless a new owner can be found, and so far there are no "credible" bidders. There has been nothing from a mystery bid involving Keith Harris, let alone the Kenny Huang bid that also failed to materialise.

City experts are now estimating that Liverpool's price tag in an RBS fire sale could be as little as £150 million, far short of the original expectations of Hicks and Gillett, who demanded £800 million and then dropped their asking price to £600 million.

Talk of a takeover before the transfer window proved to be a disappointing false dawn, and City financiers believe the value of the club will now plummet.

Liverpool suspect that potential new owners are waiting to grab the club for a knock-down price when RBS faces the prospect of selling the club itself from the October 6 deadline, when the bank's £237 million loan has to be repaid.

150m quid to buy Liverpool FC !!!

*shakes piggy bank viciously*

 

[Rouge Penguin]

Re: Liverpool Board set to block G+H's mortgage attempts

This was in the papers over the weekend.

Hopefully RBS do take it on and fuck those idiots off. At least then the value will be realistic.

 

[peekay]

Re: Liverpool Board set to block G+H's mortgage attempts

Looks like Tom and George have been receiving tips from Peter Ridsdale.

 

[Molbystwin]

Re: Liverpool Board set to block G+H's mortgage attempts

60M of additional fees since April....

Jesus Mary and Joseph.

 

[spider-Neil]

Re: Liverpool Board set to block G+H's mortgage attempts

Liverpool's owners George Gillett and Tom Hicks attempted to refinance their loans this summer by mortgaging the club's remaining assets - the stadium, training ground, players and guaranteed TV revenues.

cunts.

 

[Hansern]

Re: Liverpool Board set to block G+H's mortgage attempts

The tv deal is what, 3 years away?

I can't for the love of God understand why H&G are still clining onto us, no one will meet their ridiculous valuation and even a refinance will make the club even harder to sell in the future as more debt will be loaded onto the club.

RBS better show some balls.

 

[Insignificance]

Re: Liverpool Board set to block G+H's mortgage attempts

This was a well known way to finance whatever you wanted to finance in US a few years back. The backclash was of course what we know as the financial crisis.

All things Tom and George has done would have been prohibited by law in Norway. It is a fucking discrase they have been allowed to do it elsewhere.

 

[Buddha]

Re: Liverpool Board set to block G+H's mortgage attempts

[quote author=Molbystwin link=topic=41783.msg1170709#msg1170709 date=1283861624]
60M of additional fees since April....

Jesus Mary and Joseph.
[/quote]

That's just awful. Awful.

 

[FoxForceFive]

Re: Liverpool Board set to block G+H's mortgage attempts

Well, this shite has a silver lining, if we go for less then the more money there is to be pumped into the team.

I only hope vladders is right & the Arabs are hanging on to take advantage of this, cos a lower price means more dodgy businessmen could stick their oar in.

 

[Squiggles]

Re: Liverpool Board set to block G+H's mortgage attempts

Why would anyone have been remotely interested at a price of four to six hundred million when a few months later the value will be cut in half?

Nobody was ever going to buy us, and RBS will oversee the sale, so why is Broughton here?

Am I missing something?

 

[Wilko7]

Re: Liverpool Board set to block G+H's mortgage attempts

[quote author=Squiggles link=topic=41783.msg1170727#msg1170727 date=1283865823]
Why would anyone have been remotely interested at a price of four to six hundred million when a few months later the value will be cut in half?

Nobody was ever going to buy us, and RBS will oversee the sale, so why is Broughton here?

Am I missing something?
[/quote]

I hope it's as simple as this.

 

[SummerOnions]

Re: Liverpool Board set to block G+H's mortgage attempts

[quote author=Squiggles link=topic=41783.msg1170727#msg1170727 date=1283865823]
Why would anyone have been remotely interested at a price of four to six hundred million when a few months later the value will be cut in half?

Nobody was ever going to buy us, and RBS will oversee the sale, so why is Broughton here?

Am I missing something?
[/quote]

You do need a 5th board member to block G&H though, so i'm not complaining should he do so.

 

[Squiggles]

Re: Liverpool Board set to block G+H's mortgage attempts

[quote author=SummerOnions link=topic=41783.msg1170731#msg1170731 date=1283866333]
[quote author=Squiggles link=topic=41783.msg1170727#msg1170727 date=1283865823]
Why would anyone have been remotely interested at a price of four to six hundred million when a few months later the value will be cut in half?

Nobody was ever going to buy us, and RBS will oversee the sale, so why is Broughton here?

Am I missing something?
[/quote]

You do need a 5th board member to block G&H though, so i'm not complaining should he do so.
[/quote]

Yeah, I'm not complaining. It's worked out well for the club so far in that regard.

Right now it looks like he was hired to do an impossible job, so why has he taken it on? He's got no affection towards the club and a big reputation to protect.

There's a lot I don't understand. Broughton's appointment seems to symbolise that H&G aren't prepared to accept the inevitable.

 

[robinhood]

Re: Liverpool Board set to block G+H's mortgage attempts

He's here becuase they hoped he'd get a sale done.

i think the article is pretty accurate. Definitely seems the plausible way for things to go.

 

[HC]

Re: Liverpool Board set to block G+H's mortgage attempts

So in a months time we'll be owned by the bank is it as simple as that?

Where does that leave g&h? No longer owners but still on the board or what?

 

[robinhood]

Re: Liverpool Board set to block G+H's mortgage attempts

They've borrowed so much money that they haven't been able to pay back they might not see anything.

 

[Woland]

Re: Liverpool Board set to block G+H's mortgage attempts

150m? Torres, Gerrard and Carra could roll up a few years of their wage and sponsorship deals and buy us.

 

[RolandG]

Re: Liverpool Board set to block G+H's mortgage attempts

Doesn't £150M make fan ownership a more realistic option?

 

[spider-Neil]

Re: Liverpool Board set to block G+H's mortgage attempts

[quote author=RolandG link=topic=41783.msg1170766#msg1170766 date=1283873428]
Doesn't £150M make fan ownership a more realistic option?
[/quote]

would the fans have the assets to secure a loan for the stadium?

 

[Woland]

Re: Liverpool Board set to block G+H's mortgage attempts

The fan ownership thing doesn't ever seem to cover what happens in the event of losses. I'd prefer it if a massive corporation with loads of disposable income such as Torrardâ„¢ bought us.

 

[Gerry_A_Trick]

Re: Liverpool Board set to block G+H's mortgage attempts

I assume this is 150m + the current debt?

 

[RolandG]

Re: Liverpool Board set to block G+H's mortgage attempts

If the bank takes ownership then I assume only the debt must be paid and a new Board members will replace G&H temporarily until the club is sold.

 

[Wilko7]

Re: Liverpool Board set to block G+H's mortgage attempts

[quote author=Gerry_A_Trick link=topic=41783.msg1170771#msg1170771 date=1283873992]
I assume this is 150m + the current debt?
[/quote]

No, 150m all in.

 

[Buddha]

Re: Liverpool Board set to block G+H's mortgage attempts

[quote author=RolandG link=topic=41783.msg1170777#msg1170777 date=1283874338]
If the bank takes ownership then I assume only the debt must be paid and a new Board members will replace G&H temporarily until the club is sold.
[/quote]

I'd imagine RBS would receive offers paying a percentage of the debt and RBS having to write off the rest?

 

[Gerry_A_Trick]

Re: Liverpool Board set to block G+H's mortgage attempts

[quote author=Wilko link=topic=41783.msg1170778#msg1170778 date=1283874392]
[quote author=Gerry_A_Trick link=topic=41783.msg1170771#msg1170771 date=1283873992]
I assume this is 150m + the current debt?
[/quote]

No, 150m all in.
[/quote]

Who's paying off the loans then?

 

[Woland]

Re: Liverpool Board set to block G+H's mortgage attempts

The bank. They got fucked.

lol banks.

 

[Wilko7]

Re: Liverpool Board set to block G+H's mortgage attempts

[quote author=Gerry_A_Trick link=topic=41783.msg1170782#msg1170782 date=1283874552]
[quote author=Wilko link=topic=41783.msg1170778#msg1170778 date=1283874392]
[quote author=Gerry_A_Trick link=topic=41783.msg1170771#msg1170771 date=1283873992]
I assume this is 150m + the current debt?
[/quote]

No, 150m all in.
[/quote]

Who's paying off the loans then?
[/quote]

Given the interest payments the club have been saddled with by the yank shite for the past three and a half years, I would imagine the bank will still have turned a profit even if they sell the club for 150m as a distressed asset.

 

[Gerry_A_Trick]

Re: Liverpool Board set to block G+H's mortgage attempts

Somehow I find it hard to believe that the banks are going to write off 150m of what's owed to them, when they can definitely get more. I can't see this being true.

 

[Woland]

Re: Liverpool Board set to block G+H's mortgage attempts

[quote author=Gerry_A_Trick link=topic=41783.msg1170786#msg1170786 date=1283874904]
Somehow I find it hard to believe that the banks are going to write off 150m of what's owed to them, when they can definitely get more. I can't see this being true.
[/quote]

You could be right. Especially if more than one person is waiting for G&H to go belly up - but they will want to get shut of it asap and off the book.

 

[spider-Neil]

Re: Liverpool Board set to block G+H's mortgage attempts

[quote author=Gerry_A_Trick link=topic=41783.msg1170786#msg1170786 date=1283874904]
Somehow I find it hard to believe that the banks are going to write off 150m of what's owed to them, when they can definitely get more. I can't see this being true.
[/quote]

I doubt that's true, it will be the value of the loan plus a 'reasonable' fee for the club. there is no way on this green earth liverpool football club will be sold for £150m all in, not a fucking chance.