ToffeeWeb - Season 2010-11

The Mail Bag

Doing a 'Liverpool'

Finally, a Premier League club has shown how to negotiate the choppy financial waters of the Premier League ? none other than our neighbours from over the Park.

Yes they are in financial difficulties, Yes they cannot repay the 16% interest being charged ? but all this is going to change. When the loans run out in October, RBS will have full control, they can assume control of LFC and flog it (presumably at a price sufficient to payback the £280m loans) or they can impose a sale price on Hicks and Gillet above which they will have to sell.

So, Hicks and Gillet will make a huge loss, will have put the club into debt etc etc, but after all this, when a buyer arrives, the club will be entirely debt free and will not have been penalised the 10pts for going into administration etc. ...and all of this paid for by you and me, the taxpayer...

Everton, Arsenal, Fulham fans together paying to keep Liverpool Football Club alive ? who'd have thought it eh?

Bill Kenwright ? if you have financial worries mate, this is clearly the way to go...
Rupert Sullivan, Paris Posted 18/09/2010 at 09:28:09

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Eric Myles
1 Posted 18/09/2010 at 14:33:48

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I don't beleive it's as simple as that.

Tony I'Anson
2 Posted 18/09/2010 at 14:35:05

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Eric, the taxpayers pretty much own the RBS do they not? So when control is in the hands of the RBS - you, me and everyone else to sumits anything to HMRC each year will own a share in LFC.

Scary to think, yes it is that simple. It only gets complicated by self interested parties covering their own backs.

Tony I'Anson
3 Posted 18/09/2010 at 14:40:30

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Meanwhile...back at the ranch...."someone's got to do something" about our situation, hey Michael.

John Feeley
4 Posted 18/09/2010 at 14:41:45

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Hicks and G will almost certainly lose their equity in the club but RBS (hence tax payer)only suffer a loss if the club is sold for less than the £280m.

Frankly they are very likely to find a buyer at £280m so taxpayer will be unscathed.

But hopefully it gets sold to a tight get!

C'mon you blues!

Eric Myles
5 Posted 18/09/2010 at 16:40:49

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When I say 'It's not as simple as that' I don't see how RBS can take control of the club without it going into administration. They are not the owners and have to call in the debt, and they cannot sell the club as they are not the owners, they are just a debtor.
Even the story about the Chinese guy taking them over by paying off the debt to the bank was BS. Every business runs on debt / overdraft. So I could walk into Barclays and say how much does Everton owe you? I'll pay that and take control of the company? Or maybe I'll do it with Microsoft? or Virgin?
And one debtor can sell the club without taking into account all or any other debts that the club have?
I don't think the business world works like that.

Tony I'Anson
6 Posted 18/09/2010 at 16:56:29

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I know Eric but when HMRC (us) are "just" the debtors and lawmakers, the rules do not apply. We've just lost 1nil and I need to think of something else except Football today.

Eric Myles
7 Posted 18/09/2010 at 18:27:15

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But RBS are not the taxman, they are just a company, same a British Steel and British Rail used to be when they were government owned.

Matt Boden
8 Posted 19/09/2010 at 07:21:42

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Get a grip, and look closer to home! even with all their debt, they can still outspend us! We are losing the right to have a go at any other team as we are a laughing stock ourselves!

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