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We can outspend United, claim Liverpool
Despite their recently published levels of debts, the Merseyside club say that only Chelsea have more cash to splash
LIVERPOOL have reacted bullishly to claims that they are on the point of financial meltdown by insisting they expect to be able to outspend both Manchester United and Arsenal in the transfer market this summer.
A senior Liverpool source told The Sunday Times last night: “We have more spare cash to spend than any club except Chelsea.”
The source, who has detailed knowledge of the 2007 takeover at Anfield by the American businessmen Tom Hicks and George Gillett and insight into how they have run the club since, also says:
¤ the transfer budget will be a minimum of £20m plus sales this summer and that manager Rafael Benitez “is free to exceed it” if he can “make a convincing case”
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¤ Liverpool are not subject to some of the financial constraints on transfer dealings that limit Manchester United and Arsenal, who are more indebted to outsiders including banks and institutions
¤ Benitez is “an amazing guy who knows he has a healthy transfer budget to augment one of the world’s strongest squads”.
The source also suggested Hicks and Gillett had two regrets over their takeover. First, they reneged on an initial promise not to put some of their buyout debt directly onto Liverpool; and second, they are unable to start work on the new Stanley Park stadium “because the world’s fallen apart financially”.
They both want to remain at Liverpool, ideally in partnership with a new investor — yet to be found — with deep pockets to help fund the stadium. However, more than £58m channelled into Kop Football Ltd (Liverpool’s UK holding company) from an arm of the Hicks-Gillett operations based in the Cayman Islands is “evidence in cash” of the owners’ commitment. That money is part of £421.6m owed by KFL to all creditors combined at the end of July 2008.
Premier League debt is back in the spotlight after Deloitte’s annual review of football finance showed top-flight clubs owe in total £3.1bn, two-thirds by the “Big Four”. Chelsea owe Roman Abramovich £701m. Manchester United owe banks and hedge funds £649m and other creditors about £50m more. Arsenal owe £416m, spent largely on the Emirates Stadium and on property development at Highbury.
Kop Football Ltd posted losses of £42.6m for the year to July 2008, mainly down to interest payments of £36.5m on loans taken out by Hicks and Gillett to buy Liverpool.
Despite their recently published levels of debts, the Merseyside club say that only Chelsea have more cash to splash
LIVERPOOL have reacted bullishly to claims that they are on the point of financial meltdown by insisting they expect to be able to outspend both Manchester United and Arsenal in the transfer market this summer.
A senior Liverpool source told The Sunday Times last night: “We have more spare cash to spend than any club except Chelsea.”
The source, who has detailed knowledge of the 2007 takeover at Anfield by the American businessmen Tom Hicks and George Gillett and insight into how they have run the club since, also says:
¤ the transfer budget will be a minimum of £20m plus sales this summer and that manager Rafael Benitez “is free to exceed it” if he can “make a convincing case”
function slideshowPopUp(url){pictureGalleryPopupPic(url);re turn false;}Related Links
¤ Liverpool are not subject to some of the financial constraints on transfer dealings that limit Manchester United and Arsenal, who are more indebted to outsiders including banks and institutions
¤ Benitez is “an amazing guy who knows he has a healthy transfer budget to augment one of the world’s strongest squads”.
The source also suggested Hicks and Gillett had two regrets over their takeover. First, they reneged on an initial promise not to put some of their buyout debt directly onto Liverpool; and second, they are unable to start work on the new Stanley Park stadium “because the world’s fallen apart financially”.
They both want to remain at Liverpool, ideally in partnership with a new investor — yet to be found — with deep pockets to help fund the stadium. However, more than £58m channelled into Kop Football Ltd (Liverpool’s UK holding company) from an arm of the Hicks-Gillett operations based in the Cayman Islands is “evidence in cash” of the owners’ commitment. That money is part of £421.6m owed by KFL to all creditors combined at the end of July 2008.
Premier League debt is back in the spotlight after Deloitte’s annual review of football finance showed top-flight clubs owe in total £3.1bn, two-thirds by the “Big Four”. Chelsea owe Roman Abramovich £701m. Manchester United owe banks and hedge funds £649m and other creditors about £50m more. Arsenal owe £416m, spent largely on the Emirates Stadium and on property development at Highbury.
Kop Football Ltd posted losses of £42.6m for the year to July 2008, mainly down to interest payments of £36.5m on loans taken out by Hicks and Gillett to buy Liverpool.
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