Business Directory

Browse the Directory

Sign Up to the Directory

FC Business Twitter
FC business Linked in
FC Business facebook
FC Business Youtube

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."





If you have any football business related news stories you’d like to share then please contact us – agourley@fcbusiness.co.uk or ryan@fcbusiness.co.uk

Add to: Google Google | Yahoo Yahoo | Live Live | del.icio.us del.icio | Digg Digg |

Related Articles

West Ham United launch shirt auction in aid of Mexican earthquake relief

Fri 22nd Sep 2017 | Money & Finance

West Ham United will auction all match-worn shirts from this weekend’s London derby against Tottenham Hotspur , with all proceeds going to the victims’ families and survivors of this...

Stoke City success bringing benefits to region

Fri 22nd Sep 2017 | Money & Finance

Premier League football brought £130m to Stoke region and employed 2,200 people in one season, an EY study finds. The chance to play in the Premier League not only brings joy to fans of a club...

Manchester United Post Record Revenue Of 581m

Thu 21st Sep 2017 | Money & Finance

Manchester United has followed a successful year on the pitch with a successful year in business posting record revenues for the year ending 30 th June 2017. In a season which saw the club, under the...

30 September: the other deadline day

Mon 18th Sep 2017 | Money & Finance

As of 30 September 2017, all football clubs, sports agencies and their intermediaries will fall within the remit of the Criminal Finances Act. Through this Act, criminal sanctions can be imposed on...