OK, just had a look at last years accounts for correct figures.
LFC owes RBS £226 million. This debt was taken out in the name of Kop Football (Holdings) Ltd. Being a limited company, the directors aren't financially liable for any of the debt. LFC are responsible for this debt and pay an annual interest charge of £30m.
KFHL have also put an amount of money into LFC, charging interst at 10% apr. The current level of debt owed to KFHL by LFC is £100.8m. Again, LFC are liable for this debt. And it's growing. Last year, we were charged £9.3m on a £93m debt. Next years interest charge will be over £10 million. We are not paying this debt off and it increases every year.
So along with the money that H&G are taking out, there is the investment within the club at a growth rate of 10% apr. When you consider the £30 million interest payments as well, the club is forking out around £50 million per season in debt. Just think what we could do if that money was ploughed into the team.
So if we keep running like this, then in 10 years the debt will outweigh the value of the club. Hicks did the same with Corinthians and also with the Texas Rangers.
I beg to differ mate. Liverpool FC is £226m in debt and this debt is owed by the club in the name of Liverpool Football Club and Athletic grounds. All other debt is owed by H & G holding companies and is a debt owed by them and not the club. The £226m that the club owes includes £100.8m which was loaned to the club by H & G and the club had to pay £9.3m interest on this loan in the accounts upto July 2009. I agree that this is scandalous! However, Kop Football Limited, H & G's company, owes £347m but as MarkP mentions above this is money owed to the banks by H & G, not the club. They cannot take money from the club to pay interest or clear capital from their personal debt! The £347m is mainly money they borrowed to buy the club, they can't legally take money from LFC to pay that debt off. Last year they had to down pay £60m to refinance but there is no evidence in the club accounts that any money was taken from the club to do this. When you say the club (Liverpool football club and Athletic grounds) is forking out £50m in interest what page of the club accounts did you take that from? I'm not a fan of H & G and I think it's an outrage we pay their company £9.3m a year in interest, but to say the club is paying £50m a year out to service debt and loans is not correct, according to the latest club accounts available.
