It seems that the Hicks and Gillett regime at Anfield is nearing its inevitable conclusion.
A club that only 3 years ago had around £15M of debt, is now wading in around £400M of debt. However it is the £260M+ debt that is owed to the Royal Bank of Scotland that is likely to cause the dissolution of the American owners reign.
According to The Guardian, Liverpool’s loan has been reclassified and moved in to it’s Global Restructuring Group. This group is effectively the ‘bad bank’ part of the organisation, created to pile in all the toxic assets from the recent worldwide financial crisis.
The bank is in the unfortunate position (for itself) of being almost fully owned by the UK taxpayer – meaning that ethically and politically it can no longer continue to milk Liverpool for £1M almost every week in interest payments, to enlarge a loan it will never get back.
A number of bidders have expressed interest in Liverpool FC but have walked away from the table as they believe the valuation of the club to be too high. It now looks highly unlikely that the bank will once again extend Liverpool FC’s loan.
The Guardian cites a source at the bank as saying:
“If it has been taken out of the hands of the corporate banking department they’ll have a much more ruthless approach on 6 October.”
RBS would then hope to engineer a quick sale at a reduced rate to ensure they get as much of their loan back as possible.
They could well enforce administration on two of Liverpool’s parent companies (set up by the owners as part of the mysterious money flow) and also George Gillett Jnr’s Football UK – another holding company.
If this second approach were to happen the Premier League would be left with no choice but to hand Liverpool a 9 point Premier League penalty deduction – making the chance of European CL qualification even slimmer.
The storm clouds may continue to gather but hopefully sooner or later the crippling LFC debt will be removed.
The Hicks and Gillett years at Liverpool have brought shame on the club, embarrassment to the fans and everyone connected with the club, created divisions between sections of fans in how to deal with the mess. In a couple of months – Liverpool FC may well, once again, be all about the football.
Liverpool’s loan with RBS runs out on October 6th.
RBS should never have been bailed out they were one of the main causes of the recession. It was caused by them giving money to idiots like gillet and hicks.
Much have I travelled, and much have I seen, I have absored and inhaled laughter lines, and foward lines… Drawn battle lines across time lines, through good times, and bad…
It gets under the skin, it leaves it’s mark, and is worn with pride!
Five stars flicker in the vermont, and worn with deep and unconditional love,
that serves to remind us that all we need tonight, perhaps more than ever,
Is each other!
We made wonders happen before
SIEMPRE ES POSIBLE
It will be good for the two LOSERS to just get out of liverpool way as they really bought disgrace to all of our LIVERPOOL FANS. It will be even better for them not to get any windfall should there be any late purchased from some RICH buyer.
Hopefully we will get out of this mess. How on earth this happens to our great club? And who is
responsible for what’s happening and the damages?
the most important lesson is that our club, and others, should not be under the mercy of the owners .Clubs worth nothing without their fans and therefore they
must have a say in decision making.
Its not going to be easy to get out of such very difficult situation as the figures are really threatening but there is nothing impossible.
YNWA-YNWAIYNWA-YNWA
Walking through the storm with a golden light at the end… don’t be afraid of the dark days of Hicks and Gillett, they’re almost over. YNWA
And so the countdown begins…25 days and counting. Even with the penalty, we can only go up from this chasm. Yanks out!
untill they leave this great club, all Liverpool fans are living in the past, we are needing them forced out asap! i can at least hold my head and say i was part of the huge movement to get these con men out. i have sent every email i can, i have printed this, sent that, done it all, i have tried to call this and say that! it has helped to some little point, but i want them out,, come on Liverpool FC, keep fighting, keep up the support for this great club, come on all you reds lets get them out
Can the big websites like Spirit of shankly, This is Anfield, lfcglobe, redandwhite kop, facebook etc.. try start a campaign whereby we give RBS an ultimatum that if they do not force that scum out, then people that have accounts, loans, mortgages or any other investments of a financial nature will start moving their accounts to other banks. I know it is a mission to change banks but it shows loyalty forces the bank not to keep that scum. we also need to get more frequent updates on the sale