Liverpool losses won't affect transfer budget

[friedk]

Rafa Benitez has reportedly been assured that his transfer budget will not be affected by the losses suffered by Tom Hicks and George Gillett since their takeover of Liverpool - a spokesman for the owners was quoted as saying "Rafa always had ****-all to spend and we can assure you that, despite the dire financial results, our position has not changed and he will still have **** all to spend."

The first set of accounts published since the Americans arrived last year reported a loss of £33million in the year ending July 2007.


However, according to The Guardian, 'Despite these ominous figures, has been assured his transfer budget will not be reduced'. But the sting in the tale is that 'Spaniard's spending rests heavily on the amount raised through player sales this summer and the budget 'is understood to be far from what the manager would like'.


This suspicion is borne out by fresh reports linking Pool with Middlesbrough's Stewart Downing - hardly the type of high-calibre player the club require to produce their long-anticipated title bid.

[Vermilion]

Aye, it wont be reduced, it's a small budget, & it'll stay as such.

[Danish_Pastry]

"... just being no. 4th. means taking part in the big competition - you don't have to win the league..." someone said .....















His name is ....., and he supports McCain.....

[Exiled_red]

Sadly it's probably right though

[Parm]

I do wonder why Rafa is hanging about with us if his budget will be heavily subsidised by player sales?
Has he been given some other assurances of a bigger budget/investemtnc oming his way, that is why he is still here? we all know that we need to buy quality players rather than second rate/choice freebies and cheapos.

[calvoboy]

Every manager in the league would say that the budget is not what he would have liked, and player sales are always going to contribute towards the total amount, so I'm not too concerned about that.

Based on our usual spend, I'd imagine his budget is around £20-25m plus whatever he can raise in sales. The question for me is whether the january transfers are included in this, or whether he has fresh funds for the summer. From Tim's analysis of the finances on RAWK:

Financial Year Ending 2007 2006 2005
Purchases 69,972 41,753 46,106
Sales 25,946 16,838 13,162
Net Transfer Activity 44,026 24,915 32,944

Note, 2007's Figures include the Dirk Kuyt transfer which took place in August 2006 and came to approx £10m.

Since the end of the financial year Javier Mascherano Martin Skrtel, Sebastian Leto, Charles Itandje, Emiliano Insua and Damien Plessis have been brought into the club on a permanent basis. All of this excluding Javier Mascherano resulted in transfer fees payable of £10.9m. Add in Mascherano at an estimated minimum of £10m gives a gross outlay of £20.9m since the 31 July 2007. Also Momo Sissoko and Palleta have both left the club, Palleta for £0.5m and Sissoko for a reported £9m. Leaving net spending at approx £11.4m since 31 July 2007.

To me this shows two things. 1) We've spent a lot more under the yanks than most people appreciate. 2) If we've already spent £11.4m this year, how much has this eaten into the summer transfer kitty? It might suggest that Rafa only has £10-14m available to spend, plus whatever he raises in sales.

Finally, it is worth everyone calming down a bit. Every year people get excited about the transfer window opening, and managers stress the importance of getting players in early for the pre-season training camp, but the vast majority of transfers are done after July 1st (when contracts start), and agents with players in the Euros won't want to sign anything yet as a good tournament will boost their bargaining position. This might explain why the players we've been negotiating with up to now are not involved, and are not the big names that people would be hoping for. They will come later in the summer, if at all.

[Parm]

you have far too much common sense for this forum mate.

[carlton]

The other thing to note and remember before going spare is that once the stadium is being built, and I know its a big if, there is not going to be money for big transfers either. If Arsenal cant do it with all their wealth how are we going to it with those 2 fuc*wits in charge. I believe Rafa has said in the Echo that its not about spending big money on the players but buying the right players-what else can he say I suppose? Anyone we have spent some very reasonable money of late with Torres, Mascher, Babel, Skrtel,and it looks like we're going to bring in Barry and hopefullt a big signing with the Alonso money.

[dww]

I do wonder why Rafa is hanging about with us if his budget will be heavily subsidised by player sales?
Has he been given some other assurances of a bigger budget/investemtnc oming his way, that is why he is still here? we all know that we need to buy quality players rather than second rate/choice freebies and cheapos.

I think Rafa likes the club - simple as that really. Partly that is the fans, partly it is the fact that other than the financial restrictions he has been given complete control over the footballing aspects of the club - allowing him to build a reserve setup and the academy to his liking. I think he sees himself as being able to leave a huge legacy to the club and that he sees a lot of the work he is putting in now paying dividends in a few years.

Undoubtedly he would want to succeed in the here and now as well but I don't think there are any better jobs for him to secure his future reputation than with us.

You have to think that the budget had been set well in advance of the publishing of these accounts so it is far from surprising that it is unaltered. I would say that even factoring in the purchases of Mascher et al we should be looking at an amount not far off £20m as we have saved a few £m in the wage budget from letting Kewell go and had a good CL run.

[Dero]

This summers budget was made after the loan refinancing and hasn't changed since then, but any sales made are allowed to be reinvested. That is what I have heard anyway.

[Fiddy]

****in Stuart Downing

[fred_plasticine]

reading this forum you'd think every other club had a ****load of money to spend but us.
i think we've outspent many european top clubs over last few years. of course the likes of real madrid have always thrown silly money around but they can always rely on the (local) government to bail them out when push comes to shove.
anyway, we've signed so fantastic players since the yanks have taken over despite people claiming we'd have no money whatsoever to spend. i'm not worried at all. there's speculations and pure conjecture and every summer people go absolutely mad every time some idiot claims we don't have money.

[Skillz]

I think Rafa likes the club - simple as that really. Partly that is the fans, partly it is the fact that other than the financial restrictions he has been given complete control over the footballing aspects of the club - allowing him to build a reserve setup and the academy to his liking. I think he sees himself as being able to leave a huge legacy to the club and that he sees a lot of the work he is putting in now paying dividends in a few years.

Undoubtedly he would want to succeed in the here and now as well but I don't think there are any better jobs for him to secure his future reputation than with us.

You have to think that the budget had been set well in advance of the publishing of these accounts so it is far from surprising that it is unaltered. I would say that even factoring in the purchases of Mascher et al we should be looking at an amount not far off £20m as we have saved a few £m in the wage budget from letting Kewell go and had a good CL run.

That's exactly what I feel.

Masher's signing was always going to come out of this years budget or at least seriously affect it though. That's understandable and why there was so much debate at the time. Fact is though he is young and going to be a star for us.

I am excited by the signing of Barry (will miss Xabi a lot though, I love him as a player) and 2 attacking fullbacks. Our system will closely resemble Manchester United IMO. Barry will play ahead of Masher and add to our attack, Masher will drop into his natural role as HM.

The full backs will add width and with Agger back we will play much higher up the pitch again. Should be an exciting season

Especially with Villa