The long awaited financial results of Liverpool FC show that the club doubled its debt in the year to the end of July 2008, with debt levels rising to £86 million.
The results show the club made a slight profit on the year till the end of July 2008 although expensive deals such as the Riera, Keane and Dossena transfer funds are not included in this figure. Many football transfer fees are paid in installments and as such it is difficult to ascertain the true levels of profit and deficit.
Liverpool had posted a loss of £21 million in the year to the end of July 2007.
The clubs results are due to be posted to Companies House before the beginning of June and the figures show that, mainly due to new TV deals, the reds income increased to £159 million from £134 million the year previously. Without this substantial TV increase the reds could have found themselves £100 Million in debt.
The club owners took out a £350 million loan from the Royal Bank of Scotland which was earmarked to clear debt and pay for the initial stages of construction on the new stadium. The reds face enormous interest payments of around £25-£30 million per year, though this debt must be refinanced this summer.
Despite the assurances when both new owners took control of the club, Liverpool FC are now in more debt than at any time in our clubs history. Whilst the full figures have not been published it appears that Hicks and Gillett have only invested around £10 million between them in to the club – a third of our interest payments per annum.