Liverpool Message Board
In view of the worrying debt increase, how are we going to get the four or five top-class talents we need in the summer? I reckon that we are going to need to spend at least 50 million, and with player sales bringing in no more than 25 mil, the owners are going to have to dig deep again, or load more debt onto the club, an unacceptable situation for me.
But here's the dilemma. If we don't get into the CL next season, then it is mid-table obscurity for all time for me, we will be so far behind the others financially. I mean, City and Chelsea speak for themselves, Man Utd are growing in strength, Spurs look like they are going to compete for a long time, and Arsenal have paid off the Emirates and will be totally flush. Us on the other hand are borassic! Never mind the financial situation, our best players will want to b*gger off! This really is the most crucial couple of years in the club's history from a playing point of view.
Loki Im a supporter of our club now for 57 yrs...times change. What Im not and have repeatedly posted the fact is an accountant.However Im sure our club employs in some capacity one or two accountants who know their way around the block and back. The PPF will not, again as Ive repeatedly posted , be the be all and end all of regulation of Premier League clubs. It is a racing certainty that there will be plenty of loopholes u can drive a couple double decker buses through. I mean how many rich people do u ever encounter exclaiming "OH woe is me income tax is killing me !" NOT many thats for sure eh ? Why not ? Cos they all have great accountants who find tons of loopholes and shelters for them to stash their cash around FSG are no different and anyone thinks they are is just plain naieve. An interest free loan well...maybe it counts towards profit something the club has made I dont know but...Im sure FSG's accountancy firm does. In the meantime I will say Ive been posting up that we need a super stadium where the long term is concerned ...why do u think we havent got one ? Because the owners weve had have all said the same thing lets think about it and the thinking about it went on for yrs and yrs and yrs and...u get the picture ?
Also Ive been posting up buy proven world class quality ....Why ? Because liike u I saw how crucial the next two upcoming seasons were going to be for the club and bargain basement buys and 10 mill squid numpties like Borini are not going to get things done we need to get ourselves in the game next season and we need the players to do it with and if it means debt .....
It's a really good question and it's one I cant answer. Ian Ayre could. For me the debt isn't a massive massive concern. Our costs are. To me they look crazy high, right up there with the amount of money we've actually got coming in. The debt on the other hand is manageable and our debt over the period is actually coming down. That's good as it signals that the club is starting to manage its costs.
Back to the costs. My concern is there and I can understand why the club is trying hard to get wages under control. It also enrages me as yet again it shows the state of affairs we were in under the American con men. I would seriously lke to know who was negotiating contracts that time. I also understand that our payments to agents is very high. That obviously needs to stop.
Another concern is that our revenue was propped up by the League and FA cup runs. No such luxury this year.
Quite honestly I don't know. There's more PL money next year. Sponsors, lower wage bill etc. but honestly I cant see how that will add up to a big signing or two.
As far as the stadium goes my understanding is that it is happening quietly behind the scenes. There's a mountain of discussion going on with Liverpool City Council, residents and the like.
Your team had the big backer in the 70's and 80's your time on the football merry go round has finished and it won't come back man u is dwindling and man city and Chelsea are rising but that will change
- 1 Reply to Gary S
I've been doing some reading on this in various mediums, internet, magazine, articles etc., so I hope to provide some things that may not be available on the other side of the swimming pool, and I'd like to comment on some of the things said and referenced above, but thought I'd share these excerpts for now.. Unfortunately, I don't like saying it, but I also have no problem with saying it, alot of this occured in the last 2 seasons, and particulary in an 18 month period with a very prominent LFC club icon in the middle.
(If they'd known better, and more about the players they were investing in, this would have been minimized)
'Liverpool's owners have incurred "painful'' financial results stemming from their investment in players who have failed to re-establish the club as a European power.
The debt of the team, owned by the parent company of the Boston Red Sox, rose by one-third to 87.2 million pounds (about $131 million), according to figures released Monday. The club lost 40.5 million pounds (about $61 million) during the 2011-12 season.
The results show winning last year's League Cup, which ended a six-year title drought, had minimal financial impact.
Heavy spending before the 2011-12 season - including more than $50 million on Stewart Downing and Jordan Henderson, didn't result in an upturn on the field.'
I did find some very good, positive and pleasant reading as well, so while it's concerning, we all know why alot of it happened (bad buys at horrendous fees, and horrible wage packages), as does Ayre, Rodgers and the Owners:
"Revenue increased by 5 million pounds (about $7 million) from the 184 million pounds (about $275 million) reported for 2010-11. Man United's revenue by comparison in 2011-12 reached 320 million pounds (about $480 million)." So we can see that we're behind the league leaders, and world's largest/2nd largest club, but that gap in commercial money, and marketing deals, has continued to grow under FSG, and there's strong suggestion of another 1-2 big ones this summer. (Deals that is)
"Ayre accepts the club must "improve revenues and manage our cost base effectively.''
"I take comfort in the fact that the work we have done, some of which costs us a lot of money in this period and beyond, looks pretty painful at the time,'' managing director Ian Ayre said. "But as long as you invest in it and manage it in the right way, then hopefully it bears fruit as we go forward.''
Rodgers : (I'm sure you may have read this already, but everyone quotes/words differently)
“In terms of me building the squad, I've already got the assurances that it won't affect anything,” he told reporters.
"They've made every promise and every commitment to me that every single penny that they have will go in to regenerate the squad and make it better.
"We won't be able to do it like some clubs and throw out masses each year. But we're looking to make sure we can grow the club and bring in quality players - and that won't stop."
"If you look at where the club was at four years ago, and where it is now, it's in a different place," he continued.
"Of course, there's still debts there and there have been announcements made on that. I think next year's results will show further improvement on that.
"You have to give massive credit to the board here. FSG took on an astronomical amount of debt, over £400 million. Where it's at now, given the short time they've been here, is a huge credit to them, and they're still supporting the investment in the team.”
They dont always have to cost mesmerising amounts! We could add an experienced forward but I really like SAS, I don't think we have to upgrade particularly in that area unless a bargain of sorts arises. The noises seem to be that Sakho and Williams will be the centre halves whilst Cissokho could be the left back, to be honest, that is probably £22m worth of defenders but Coates should return us £5m also. It looks like we will get another right sided player with that ranging anything from Ince, to Turan to Alexis Sanchez! Carroll will surely be leaving for somewhere at a huge loss but still money coming in, likewise Pacheco and Spearing will grab us around £5m combined. Surely Assaidi will make way too, I think his value will be at least what we paid, he could tear it up for someone.
The net debt is not a big issue when you consider half of it is interest free to FSG, the reduced wage bill will probably rectify it alone over the next 4 years.
Suarez says he wants CL football.. I presume he means this coming season? In which case that means we'll not be in it.. as we've blown it. Who can blame Saurez if he does leave? Not I.. he's played his guts out for us and we've not backed him up with the right players..