What next for Liverpool FC?

What Next for Liverpool FC?

What Next for Liverpool FC?

Is this the most turbulent time in the history of Liverpool Football Club? Underperforming on the pitch and uncertainty off it. It is said that the problems of nay business should be traced back to the highest level and no one would question this of Liverpool's fate. The problems stem back to the owners, American's George Gillet and Tom Hicks. The paid clearly have a successful business past building up their millions and running sports teams in the States. However they seem to have taken major gambles in the purchase of Liverpool FC that have not paid off. They gambled that funding one big investment in Fernando Torres would guarantee successit hasn't. They gambled that the economics market would continue to risebut then game the world banking crisis. They gambled on being able to obtain external funding for the new stadium.they couldn't because their credit rate was falling. Finally but most significantly, they gambled that leveraging the club with purchase debt would be manageable by increased revenues off the pitch..it hasn't.

Hicks and Gillett do not sit on the board of Liverpool FC, that is mainly comprised of Chairman Martin Broughton, Managing Director Christian Purslow and Commerical Director Ian Ayre. All three publicly want a sale and to see the club in the hands of new owners who will not saddle the club with leveraged debt. The Americans want a reported 600million for the club which will net them a healthy profit for their time on Mersyside. If RBS complete their option of calling the club into their ownership because of non repayment of loans worth 237million then they may sell for around this mark as they will only look to recall their loans, not make a large profit from the club (aside from the vast interest profits already made that is).

Given the above figures, who has got a spare 600million to buy a football club? Especially as the board will block an attempt at a leveraged purchase. And then they would be required to fund investment on the pitch and possibly the new stadium too, as hard as the current board look there are not too many people with that sort of spare change. With that in mind it is likely that a sale will not materialise before the RBS deadline. Prospective buyers with 600million to spend may also sit tight and wait to buy the club at a knocked down price of 240million from RBS and then they would have surplus cash to invest in the first team and a new stadium, in that sense 600million would go a long, long way and would purchase the three World Class players required to accompany Gerrard and Torres in the Liverpool team.

So, Liverpool fans clearly don't want Hicks and Gillett and longer than they have to have them, but do they really want RBS running their club and making the financial decisions? Baring in mind that RBS are technically state owned, is that a better solution? Who can afford to buy the club is also un-known as there is not an un-limited supply of Arab state oil merchants shopping for football clubs. Liverpool fans may have to be patient in their wait for a resolution and pray that it does not cause too much damage in the process.

What next for Liverpool FC?

By: Andrew Brown

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