ToffeeWeb - Season 2006-07

The Mail Bag

WHAT, No Investment?

West Ham, Newcastle.... all getting investment why aren't we? Sounds a bit like a kid trying to get a Playstation 3 from his mum. At the end of the day, why?

West Ham are in London so are a more attractive proposition. Man City have a ready-made stadium in the fastest economically growing city in the country. Newcastle have a ready-made stadium and are the biggest club in the area with a massive fanbase (sell out every week even if they are crap. Aston Villa are the biggest club in their area, on a level par with Everton in terms of history, maybe more successful (Euro Cup) and based right in the centre of the country.

I don't want Everton to sell out to someone who views Everton as a money-making scheme, buying the club into a debt a la liverpool and Man Utd. Or have a despicable person who has killed people (or responsible for peoples death's) run our club. I mean, I don't like BK as a person but he ain't the living scum that a successful billionaire capitalist requires to be in order to be a successful billionaire capitalist.

Besides this fact, getting a person to bring investment is not as simple as saying, "OK we accept your offer." Any investor will look at every detail before buying. People say a club with our history should attract investment, when it comes to this money it aint History they care about, its Money.
Oliver McAdam, Liverpool Posted 28/06/2007 at 21:03:25

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n everman
1 Posted 29/06/2007 at 01:24:27

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Liverpool has no debt. The owners have debt upon their investment firm, of which LFC is about 2%. Investment capital works on a debt to income ratio, so every time a new investment is made, such as the purchase of a football team, it goes into the debt for a short period of time. That debt is balanced against the overall value of the investments as a whole. The value of the investment company is thus assigned a value. The owners have an overall net worth over 200 Billion. You have no idea what you’re talking about.

Brian
2 Posted 29/06/2007 at 01:42:48

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n everman..You may be right, not smart enough in those areas myself to say for sure. Do you have to be an arshole as well though ?

bluey
3 Posted 29/06/2007 at 02:36:58

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Yes n everman. the writer was expressing an opinion, there is no need to be so insulting to Oliver. Oliver is correct re the level of risk as although a long-term investment, the owners can pull out if they feel they are not receiving a return on their investment- the investment has to be from the right people and my feelings are that in the future more investment bids will be turned down before the right people to work with are found. Strewth!!!!

Liam Taubman
4 Posted 29/06/2007 at 07:03:59

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n everman

(1) You forgot to mention the possibility that the loan the owners took out to buy lfc is probably secured against the assets of lfc.

(2) The owners will have to pay interest on the debt and so they will expect a return from their investment to cover this. (As confirmed by Gillet recently in his interview in The Guardian)

(3) Banks will not only consider the debt ratio but also the ability of the investors to repay/service the debt i.e. the ability to pay the interest out of income received.

So there are risks for lfc and their owners from this purchase.