KopTalk.com Forums Football Liverpool FC Forum The mysterious world of FSG

Did they not get the club by clearing the debt?

No they wrote a cheque out to the bank so cleared the debt with the bank. That debt now does to FSG

Entry

Dr Assets (Subsidiary e.g LFC)
Cr Bank

Dr Bank
Cr Liabilities *

* That FSG owe to their bank

I see where you are coming from but the club is now profitable,obviously FSG will want their money back,thats what investment groups are about.

Exactly so FSG will have an asset (funded by the bank) tying up money of £220m or so. They will be paying interest to the bank of say £14m per year. Say Liverpool generates £25m operating profit to the FSG group FSG group profit is £11m. Also the FSG group will have a cost of capital that is they would want a x% return on investments just like you or I with our savings. That might be 10% in my example return after interest is 5%. But the point is the debt has just been moved to another place in the accounting ledgers its not gone away. The only way it would go away if if John Henry said here you are heres a cheque from me for £220m. I don't think he did that.

I'm pretty sure they paid it off, yes FSG, with cash in the bank. Not with credit or a cheque. I don't think they 'took that debt on' I'm pretty sure they paid it off. Therefore that debt bar the 20 odd million I mentioned no longer exists. It is paid off. Not taken on by FSG.

So who paid it off?

FSG with money. Not taking the debt on for it to be on our parent company. Paid it off. So the debt is no longer there.

Big red kop FSG paid it with money ? their money ?

or Henry's money?

Its an important point FSG are a seperate legal entity to Henry.

No he probably didn't,plus the other investors wouldn't allow it anyhow,for me it is now coming to point where they either sh1te,or get off the poe,they have to speculate to accumulate,either refurb or build a new stadium,is there a reason why they are waitng,something we dont know about.I know it takes time to get plans e.t.c ready,but we need to hear something soon.

I agree Wakka somethings not right here. You don't take a club the size of liverpool on with their known development needs and DO NOTHING. When Moores and Parry were around it was well known the club needed investment lots of it. Thats why Moores sold out.