Liverpool on the verge of financial ruin.

[Gilly Fan]

Liverpool hit by red alert over soaring cost of debts | Liverpool - Times Online

They lost $85 million (42.6mil pounds) last year. Are they going down the road of Leeds United? I bloody hope not.

 

[Roofrom50]

Jesus that is a fair amount of money.. Can i have it?

 

[Hooper]

Someone will buy their way out of it...No need to worry.

Guess that means no over spending this transfer season.

 

[evertonfan]

hahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahahaha

They'll find their way out of it though. And besides if they do ever go into administration i'm sure the FA would find a way to not dock them points and they'd probably actually shag them right up the arse and give them the Premiership. Just like when they failed to qualify for thw Champions League yet Uefa decided to let them in anyway.

 

[mattfb]

Someone will buy their way out of it...No need to worry.

Guess that means no over spending this transfer season.

We sell to buy.

 

[m_vaughan]

I do not think its that bad to be honest, but they probably will not spend much this season. And honestly speaking I dont think they need to because they have a very good squad already. Need to ensure that Stevie G and El Nino remain fit for most of the season, and play more games together.

They'll find their way out of it though. And besides if they do ever go into administration i'm sure the FA would find a way to not dock them points and they'd probably actually shag them right up the arse and give them the Premiership. Just like when they failed to qualify for thw Champions League yet Uefa decided to let them in anyway.

That was a stupid rule in the first place. Not having the defending champions in the next tournament. Maybe they would not have changed it for any other team, but it was still a stupid rule in the first place.

 

[evertonfan]

At the end of the day, the winners of the World Cup still have to qualify for the next one.

 

[PhilD123]

It's the same situation as United are in, in that a parent company owns the club, and the set up parent company are the ones with the debt. Therefore, cracks will be painted over by club people saying that "the club is profiting". Since the Glazers have been at United, I think we've had to pay something like 250 million back in interest payments. 250 million that could have made us very strong in the transfer market. It's just lucky we're doing so well at the moment, without the money that's been brought in through reaching CL finals and winning the league, we'd be in big trouble I think.

I wouldn't mind seeing Liverpool going down the road of Leeds at all (although it won't happen), but the general situation needs to be looked at.

 

[m_vaughan]

At the end of the day, the winners of the World Cup still have to qualify for the next one.

Atleast the World Cup is four years apart and the qualification for the next one takes place after the previous one is completed. But I would still have the defending champions qualify automatically.

 

[Leicester Fox]

They're probably better off than we are. Too many billionaires for them to be ruined sadly.

 

[Highlander999]

I wouldn't mind seeing Liverpool going down the road of Leeds at all (although it won't happen), but the general situation needs to be looked at.

Newcastle are the ones in danger of that

 

[PhilD123]

They're probably better off than we are. Too many billionaires for them to be ruined sadly.

True, the only thing that's worse in their case is that the debt needs to be refinanced quicker than it does for us. However, our debt is much bigger unfortunately.

 

[m_vaughan]

True, the only thing that's worse in their case is that the debt needs to be refinanced quicker than it does for us. However, our debt is much bigger unfortunately.

How much is it? How many league titles would be needed to balance it out?

 

[PhilD123]

Coming up to 800 million I think. To answer your other question, we've won the league the past 3 years and the debts still rising (cos of having to pay interest payments). I think it started at something like 600 million.

 

[Kev]

I heard on business news the other day (I think) that Man Utd's debt is around the billion mark. Liverpool's while quite hefty doesn't come anywhere near that. But is this news? Pretty much all the clubs run in the red (and by staggeringly large margins). It's not really about the size of the debt, its about being able to 'service' it. As long as you can make the payments then you are ok. It's when the cash runs out that you aren't.

TBH I wouldn't be surprised if sometime in the future there is a big shakeup - banking crisis style with the way football is financed. Stop paying the players absolutely criminal wages and you'd go a big way to sorting it out.