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

Manchester United & City Donate £1m To Emergency Fund

Thu 25th May 2017 | Money & Finance

Manchester’s two Premier League clubs combine to support the city’s fundraising efforts with a £1m donation pledged to the We Love Manchester Emergency Fund set up in the wake of...

Biggest Prize In Football Gets Bigger For Royals and Terriers

Thu 25th May 2017 | Money & Finance

Huddersfield Town and Reading will battle it out for what is considered the most valuable match in world football at Wembley on Monday 29 th May. Promotion to the Premier League for either club will...

3 Observations From Clubs’ Online Merchandise Stores

Wed 24th May 2017 | Money & Finance

Football clubs and their online merchandise stores have been on DiscountIF ’s radar for some time now. After a few sit downs and calls with clubs in the Premier League, Championship and the two...

The DiscountIF Football Merchandise League

Wed 17th May 2017 | Money & Finance

Manchester United. Real Madrid. Arsenal. These are football clubs first and foremost, but they are also some of the most recognised brands around the world. Football clubs are following others...