Dubai International to make bid for Liverpool FC

[AFII]

The difference between our situation now and the situation Arsenal was in a couple of years ago is that we will have two loans to pay off, Arsenal have one, the loan for the stadium.

We have, club plus stadium.

[tomasjj]

160 on the club right?

45 - working capital - players bought last summer etc - double sigh!
45 - debt from the old regime - sigh..
60 - to start the new stadium - fair

now where did that last 10 mill go?

Or is it 105 on the club?

[dww]

I sort of guessed that,but surly £60m will only be enough for ground works and preperation.That should be done in 6-8 monthes.How can they then go back to RBS and ask for another £50-£100m before even this current loan expires?

See what i'm getting at?

Presumably the assumption is that the financial climate will be better in the future - therefore we will get a better rate on the loan. Also if we have naming rights deals set up then that will help with getting that loan.

Or maybe they want to sell to DIC. I suspect that that is just dreaming though.

[JCase]

Just on the radio, 60 million to go on "starting" the stadium. The rest to pay off other debt including debt accrued from paying for players last year. Another loan needed to complete the stadium. ****ing hell.

I would imagine that the interest for the stadium loan etc would be recouped by selling the stadium naming rights.

[tomasjj]

So.... 40 millions loan to pay for players the last year......

So...what about the TV money and the CL money and the money from outgoing players?

[Tom]

Big fat bonuses and legal and architecture fees.

[disco]

So.... 40 millions loan to pay for players the last year......

So...what about the TV money and the CL money and the money from outgoing players?

I can't work out if it's players last year, or players this year?! Can be read both ways. I suspect it will be the former though

[Vermilion]

So there are nearly 5000 post on a bid that never happened. Thats great.

Show's how fanatical & interested in the club Liverpool fans are i think. Shows commitment to the cause.

[disco]

Unfortunately, and I'm wary that we've still not seen the detail, but odds on some people going.... "actually, that makes sense" are slim to zero.

[bobbyfallon]

maybe its just me but is it not a similar set up to buying a house ???

you have to get a mortgage, you start paying it back, you then want a new car, so you refinance - putting the car cost on the existing mortgage rather than having two loans???

is this not the cheapest way of paying it of in the long term??

rather the ****ers paid it from their own arse pockets like,

financial experts please reply below

[Dhav]

Yep, the financing of the stadium in that was was never a big issue as it was always going to be done through some sort of loan / bond etc.

The problem is that, in selling to the Americans, we've now lumbered the club with not only the debt that we had before (45M) but the liability of having to pay these absentee landlords a princely sum so they can cover the repayments on the loan they used to buy the club. And further it is questionable exactly how our "spree" last Summer was paid for, with people suggesting that it was funded purely from the Champions League euros or Sky Sports pounds rather than any actual American dollars.

Exactly. I really fail to see how we are in a better position under these two than we were under Moores.

[disco]

maybe its just me but is it not a similar set up to buying a house ???

you have to get a mortgage, you start paying it back, you then want a new car, so you refinance - putting the car cost on the existing mortgage rather than having two loans???

is this not the cheapest way of paying it of in the long term??

rather the ****ers paid it from their own arse pockets like,

financial experts please reply below

That's essentially it.

It's certainly not the cheapest way (because of the interest payments), but it uses up the least capital. The basic, much simplified, premise is exactly the same as those people who now own 50 houses with 50 mortgages, because they've used capital growth as a deposit on each new house.

With the housing market people have started off with £10K and ended up multi-millionaires.

Both these guys have built up considerable net worth using this approach.

[Tom]

Some of the posts on this thread about debt and LFC are borderline braindead. ****ing embarrassed on their behalf.

Call me old fashioned but when the yanks were persuading us to sell our "family silver" one of the things they promised was not to load debt onto the club. Given that shareholders sold their shares on that basis, don't you think that the morality of that situation aside, we'd have something to feel a little peeved about.

We now have the "cold hard facts" (copyright Johnny 2008) to show that they have indeed broken their main promise to us. If you think getting worked up about that is borderline braindead then you're an extraordinarily relaxed individual.

[bobbyfallon]

That's essentially it.

It's certainly not the cheapest way (because of the interest payments), but it uses up the least capital. The basic, much simplified, premise is exactly the same as those people who now own 50 houses with 50 mortgages, because they've used capital growth as a deposit on each new house.

With the housing market people have started off with £10K and ended up multi-millionaires.

Both these guys have built up considerable net worth using this approach.

what i mean by the cheapest way is - - are you not better on joining the two loans into one big one, rather than have a big long term loan and a smaller short term loan???

[Jayesh87]

The deal, which is expected to be announced on Friday, underlines the pair's determination to remain at Anfield despite interest from Dubai International Capital (DIC), the investment arm of the Dubai government.

Hicks will also feel he will be in a stronger position should he decide to sell in the future, dealing a blow to DIC's hopes of mounting a swift bid to take control of the club.

But Bose said: "I'm told by my sources in Dubai that DIC is still very keen and has been selling assets to make sure it has the necessary money.

"It was not keen on this re-financing because it feels it puts up the price of Liverpool. But DIC is still in the wings,and I wouldn't be surprised if something happens on that front, maybe not just now but in the next year or so."