No guarantee debt will not be loaded on Liverpool FC again
Wed 3rd Nov 2010 | Money & Finance
Just when Liverpool fans thought it was safe to come from behind the sofa it emerged yesterday that the protracted takeover of Liverpool Football Club by NESV led by John W Henry comes without any formal guarantee the acquisition cost will not be ‘loaded’ on the club.
In questions posed to John W Henry by the Guardian newspaper it emerged that no formal guarantee that the acquisition costs would not be loaded onto the club, had been formally considered to be written into the deal.
However, it’s understood that while Henry gave chairman Martin Broughton assurances, it was decided that 'such a commitment would not be strictly legally enforceable', and was therefore not given in writing.
The majority of the debt that was loaded onto the club by the previous American owners, Hicks & Gillett has been paid off, the only money the club now owes is £37million to RBS for the cost of development work for their proposed new stadium.
"The simplest thing to say is that we removed all debt but the stadium debt," Henry said.
"LFC is not servicing debt other than stadium debt."
Henry did also promise not to use club finances for interest payments on any debt they may have, just as Hicks and Gillett did. However, they eventually did take many millions from the club to pay interest on their loans.
Henry also refused to disclose how his takeover was funded. In an e-mail to The Guardian, he wrote:
"I have certain obligations to my partners regarding confidentiality of a private company and in not disclosing our financials publicly.
"LFC discloses its financials annually, so monies going in and going out are disclosed. But I'm not going to disclose NESV financials or financing information."
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