Will Liverpool go into administration this Summer?

You cannot blame United and Liverpool for not being wary of the takeovers at the time they were happening, simply because of the manner of the transactions. To be fair to the fans of both clubs (and probably both existing board rooms too), they thought they were getting sugar daddies like Abramovich, and they instead got absolute liabilities who threaten their long-term financial stability.

The way the Glazers and Gillett/Hicks bought the respective clubs was pretty nefarious and sneaky, and I doubt we will see the Premier League allow it again. Certainly all fans should be keen to spot it happening to their club in the future.

To be able to afford the purchase price of Manchester United/Liverpool their respective American owners took out millions of pounds worth of personal debt scured against their assets in the US - their existing sports franchises. After buying United/Liverpool they then turned this massive debt back onto the clubs by renegotiating the loans and securing the debt against the clubs themselves! Effectively using the club to buy itself, paying for the debt out of the operating profits.

Of course this has gone rather badly wrong at Liverpool where they aren't even turning enough money over to service the debts, and are thus operating at substantial losses. This was made a lot worse by the financial crisis; the interest rate on some of their debt is insanely high.

United are lucky to be so widely supported, and make so much money, that that could probably never be the case. The Glazers don't look like they're ever likely to up sticks though...
 
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goonerfan said:
The way the Glazers and Gillett/Hicks bought the respective clubs was pretty nefarious and sneaky, and I doubt we will see the Premier League allow it again. Certainly all fans should be keen to spot it happening to their club in the future.
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At the moment there's nothing to stop it happening again, the PL and FA don't seem to care even though it's destroying the game. All it needs is a rule to say that you cannot put existing debt onto a club after sale, nothing complicated really.

This isn't just the PL too, lower league teams are going out of business because of dodgy owners, however thats not big news so the media doesn't care to report it.
 
Stretch said:
Haha, have you ever been to Anfield?
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It's a ****hole certainly, but you'd be suprised how much of it has been bought up by developers already due to low land costs, main problem round there is transport, it's isolated from the merseyrail network. I still think they'd be better off building a stadium somewhere more prestigious like down by the river, just north of Princes Dock in similar fashion to the Echo Arena, could even have an LFC ferry terminal for wirralites to access a match.

But again, that would need much more investment, wouldn't happen in a million years with the current cowboys.
 
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Cannaton said:
It's a ****hole certainly, but you'd be suprised how much of it has been bought up by developers already due to low land costs
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FrankJH was of the understanding that Liverpool could sell off the Anfield land for more than Arsenal did with the Highbury land :/
 
They need to sort out a new owner soon. If they dont then you will see an exodus of the top players from Anfield leaving them in a worse situation.
 
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