Quote:
Liverpool have refuted claims that they have sought advance funding from the Premier League from TV revenues and sponsorship payments as their financial situation is starting to alarm fiscal experts.
With Gillett's finances in a parlous state, and with the possibility that he might default on other loans and ultimately lose his 50% stake in Liverpool, his partner Hicks is now attempting to refinance alone and gain total control - sending alarm bells through Anfield.
Sources have told ESPNsoccernet that there are strong rumours that Hicks has launched a new bid to retain control by looking to secure another refinancing deal as Gillett attempts to avoid defaulting on a $75 million loan.
The board is fiercely opposed to any attempts at refinancing by the Americans, having successfully warded off such a threat in June. Liverpool fear the worst case scenario would be further loans and debts and higher interest repayments.
When Hicks and Gillett tried to find a £290 million 'mortgage' using the stadium and players as assets, the board threw it out and took legal advice to ensure they were within their rights to do so.
With the October 6 deadline rapidly drawing so close, Hicks and Gillett stand to lose their stranglehold on Liverpool, with RBS handing it over to their Recovery Unit to sell as a distressed asset. Even then there is no guarantee of a buyer, as any new owner has to invest £400 million in a new stadium.
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http://soccernet.espn.go.com/news/st...ngland&cc=5901
Ladies and Gentelmen, boys and girls, children of all ages, what we have here is a classic example of why the Leveraged Buy Out (LBO) died as a form of corporate takeover in the late 80s to early 90s. It saddles the new company with an insane debtload that is usually teetering on the knife's edge from going over. All you need is a slight change in interest rates (which is going to happen, interest rates change all the time) to turn what was once affordable financing into a stranglehold.
H&G are just too goddamn stupid to have realized it and its going to cost them everything. You know they're desperate because this is basically their last asset, I wish the FA had moved faster in booting them out so they could make this stupid last stand for the Texas Rangers or the Dallas Stars rather than Liverpool.
Yanks, GTFO.