Marussia Nose Section Sells For $23,500 Russian Currency Crisis Drives Up Costs Russia's KHL On Verge Of Financial Ruin Argentina To Help Fund Dakar Rally Women Making Sponsorship Gains Independiente's Debt Reaches $67M EPL Clubs Charging Up To $930 Australia To Overturn Tax On Yearlings Coke To Sponsor Rugby World Cup 2015 Coors Signs Deal With Two EPL Clubs
Enter amount in full numerical value, without currency symbol or commas (ex: 3000000).
SBD Global/March 5, 2013/Finance
Liverpool Reports Debt Increase Of $32M To $131M In 10-Month Period Ending Last May
Published March 5, 2013
LOOKING FOR HOPE: In London, David Conn reported the £40.5M loss followed a £49M loss the previous year, ending July 31, 2011. This period covered Fenway Sports Group's "first months since its takeover" from former owners -- U.S.-based Tom Hicks and George Gillett. If Liverpool repeats these figures next year, it would "fail the new regulations introduced by the Premier League," which limit annual losses to £35M ($52.8M) (GUARDIAN, 3/4). Also in London, Chris Bascombe reported FSG "has injected" £46.8M ($70.1M) of its own cash into the club "via a non-interest loan." Despite the debt increase, Liverpool's annual pre-tax loss "actually fell during this period" by £8.8M ($13.2M). There "is no doubt" FSG feels it remains in a period of damage limitation. However, the figures are "reflective of problems they inherited and the discomfort they expect the club to endure before they can reclaim top four territory." How these "enduring issues will be resolved without swift improvement on the pitch and a solution to the stadium issue is unclear." The greatest potential source of future revenue, however, is "extra seating capacity." However, there is "no suggestion the club is any closer to raising funds" to act upon its statement of intent to stay at Anfield (TELEGRAPH, 3/4).
NO PLAYER SELLING: In a separate piece, Barrett also reported Liverpool Manager Brendan Rodgers "will not come under financial pressure to sell players in the summer." Ayre said, "We won’t be selling anyone because of the financial position. If we’re selling anyone, it’ll be because they are deemed by the manager to be surplus to his requirements and, obviously, if that happens, we will be replacing them and bringing new players in, as we always do." Liverpool expects its next accounts to "reveal a much healthier picture," particularly because they will include the proceeds of a £20M- ($30M)-per-year kit sponsorship deal with Warrior (LONDON TIMES, 3/4).