Liverpool owners get loans for stadium

[Norbs]

Would Moores be able to guarantee a loan of £ 500m ?

Wont it be guaranteed against the club?

I reckon he's got that much down the back of his sofa

[MrMichael]

Not being funny but I could get a loan to build a stadium, so could anyone. What's the point of getting a couple of rich guys to buy the club if they are going to borrow the money to pay for stuff. It seems a bit cock eyed.

Why couldn't Moores borrow the dosh to build a new stadium? If the stadium will bring in masses of extra income which will then in turn provide funds for a transfer kitty in addition to paying back the loan, it seems daft that we needed a change in ownership to achieve it.

Oh, ok then, if you insist on being serious, surely you can't think it is quite as simple as that. I can't just walk into a bank and ask them to lend me £500m to build a new Anfield, however profitable it could turn out to be. Well, I could, but that would just be a silly thing to do. David Moores was and is obviously unable to take the project on, or if he could, do it proper justice, hence a search for serious investment that lasted years and years.

[AFII]

Will you stop that... stop it. We're trying to hijack this thread

Now look. No-one is to stone anyone until I blow this whistle. Do you understand? Even, and I want to make this absolutely clear; even if they do say Jehovah.

[Norbs]

Oh, ok then, if you insist on being serious, surely you can't think it is quite as simple as that. I can't just walk into a bank and ask them to lend me £500m to build a new Anfield. Well, I could, but that would just be a silly thing to do. David Moores was and is obviously unable to take the project on, or if he could, do it proper justice, hence a search for serious investment that lasted years and years.

I am being semi-serious but I'm always open to being educated. The bit about me getting a loan was tongue in cheek but I'm sure Moores is in a position to raise a vast amount of money, especially considering his history with the club. The new owners have proved this week that they might not be completely tuned in to us, I just hope it doesn't go belly up!

If they have the money to pay for a new stadium then why cripple yourself with loan repayments. If they don't then I can't see why they were so warmly welcomed. I'm a bit confused

[AFII]

Oh, ok then, if you insist on being serious, surely you can't think it is quite as simple as that. I can't just walk into a bank and ask them to lend me £500m to build a new Anfield, however profitable it could turn out to be. Well, I could, but that would just be a silly thing to do. David Moores was and is obviously unable to take the project on, or if he could, do it proper justice, hence a search for serious investment that lasted years and years.

To be fair, Moores stadium project was ****, you don't build a 60k stadium without any chance to expand it.

If you do that for such a big club like Liverpool then you will more or less be forced to build a new one in 25-30 years time, if not even sooner than that or you will be left behind again.

[Tee]

Quality!

[calvoboy]

Isn't the point that they were able to take out personal loans in order to buy the club and clear the debt. Moores didn't have enough of his own money to be able to borrow the amount needed to invest in a new stadium, didn't have enough of his own money to clear the club debts, and no-one would lend £500m to a club that was already heavily in debt.

[Norbs]

Isn't the point that they were able to take out personal loans in order to buy the club and clear the debt. Moores didn't have enough of his own money to be able to borrow the amount needed to invest in a new stadium, didn't have enough of his own money to clear the club debts, and no-one would lend £500m to a club that was already heavily in debt.

Fair doos. Ta.

I feel much more comfortable knowing that they have a personal debt, rather than it just being a bank debt. It connects them to the club more, IMHO

[dawmdt]

Not being funny but I could get a loan to build a stadium, so could anyone. What's the point of getting a couple of rich guys to buy the club if they are going to borrow the money to pay for stuff. It seems a bit cock eyed.

Why couldn't Moores borrow the dosh to build a new stadium? If the stadium will bring in masses of extra income which will then in turn provide funds for a transfer kitty in addition to paying back the loan, it seems daft that we needed a change in ownership to achieve it.

I could go into pages explaining why businesses will typically go for debt to fund large projects rather than using their own equity but this page explains it far better than I could

http://www.investopedia.com/university/financialstatements/financialstatements8.asp

(read the paragraph "Debt is Cheaper than Equity")

[Norbs]

I could go into pages explaining why businesses will typically go for debt to fund large projects rather than using their own equity but this page explains it far better than I could

http://www.investopedia.com/university/financialstatements/financialstatements8.asp

(read the paragraph "Debt is Cheaper than Equity")

[AFII]

I think what most of us mean, at least me, is that it would feel better if G&H took the financial hit if something went wrong instead of the club.

If they borrow the money against the club then it's the club that will take the blow and not G&H.

We would then be owned by the bank or whoever we loaned the money from if they can't pay the interest.

I'm **** at the financial bit but I think I got it right.

[Rocket]

I'm **** at the financial bit but I think I got it right.

[dawmdt]

I think what most of us mean, at least me, is that it would feel better if G&H took the financial hit if something went wrong instead of the club.

If they borrow the money against the club then it's the club that will take the blow and not G&H.

We would then be owned by the bank or whoever we loaned the money from if they can't pay the interest.

I'm **** at the financial bit but I think I got it right.

I don't know their specific financial details but consider it this way... nobody is going to lend five hundred million quid to anybody, certainly at a reasonable interest rate, without something guaranteeing it or backing it up. You could argue "but they're worth xxxx hundreds of millions" but that worth is mostly not cash it's the value of their businesses and other sports teams. If it all went wrong and we defaulted on that debt and they were personally guaranteeing it, it's not about them dipping into that spare half a billion (which they don't have in cash anyway :P ) in their bank account it's about them selling off their assets to cover that default... which is not a very good way to practice business and they wouldn't be where they are today doing that kind of thing!

Soooo they need to guarantee it. As Liverpool supporters of course we have an emotive view that says we shouldn't guarantee it against the club but what could they guarantee it against? Their other companies? They have a legal obligation to always operate in the best interest of their shareholders (even if those shareholders are just them) so they can't do that. There other sports teams? That's hardly fair on those fans!

I would hope they have structured the deal so it's not secured against the whole club as such but more against specific assets eg the stadium itself and maybe some other property and perhaps a small proportion they are personally throwing their own financial muscle behind.

[Dirk07]

Getting loans has changed dramatically over the last few months, I am personally having difficulties organising leases for companies to buy £100k worth of systems from me every month and they are good profit making organisations.

Now with lending this much for a football ground the banks will see it as not being of low risk because if anything happened so that it wasnt being profitable.... liverpool not being successfull for instance and making liverpool as a business unprofitable because of the debt, the stadium would be the asset to be sold "but" what value would the stadium actually be worth? if its not any good as a football stadium what other use is it?

[Rocket]

fella, you talk alot of sense, and until anyone can see the specific loan agreement, nobody can't comment on what kind of charge is held.

not many rich people hold huge supplies of cash, because it is a poor form of investment, so other than guarantee the loan against the texas rangers baseball team, the stadium is the clear choice.