Liverpool's American owners Tom Hicks and George Gillett may dip into club's profits

[Needles]

From The Telegraph...

"Liverpool owners Tom Hicks and George Gillett intend to use the club's profits to service interest on the loans they incurred to buy the club, The Daily Telegraph has learned.

Sources close to the owners insist that the profits, £15 million up on 2007, show that the club's debt is sustainable and can be comfortably serviced.

However, the planned use of profits will anger fans who have long suspected that Hicks and Gillett intended to take money out of the club to service their loans.

Sources with knowledge of the Americans' intentions confirmed yesterday that Hicks and Gillett intend to use over half of the club's anticipated profits of £40 million for the last financial year to service £25 million in interest payments.

Hicks and Gillett initially borrowed £298 million to buy the club in February 2007, refinancing the deal with a £350 million loan earlier this year from RBS and Wachovia. Of that, £105 million was forwarded to the football club, with £245 million in a holding company.

The owners have also secured a six-month extension of the terms of the loan to July 2009.

Sources point to recent commercial deals worth £10 million as evidence that the club's commercial revenue streams are under-performing, and insist the owners are committed to Liverpool. "

[el matador]

Owners launch bid to find buyer for Liverpool

Tom Hicks and George Gillett Jr, the Liverpool owners, have signalled that they are ready to sell their stake at Anfield after engaging Merrill Lynch, the investment bank, to find a buyer for the club.

The Americans need to restructure their £350million loan with the Royal Bank of Scotland (RBS), which expires on January 25. However, the bank, at present under public ownership because of the credit crunch, has adopted a policy of restructuring loans only in extremely favourable conditions. While discussions with Gillett and Hicks have not yet opened, their circumstances are not believed to fall into this category. The owners have always denied that the club were available for sale but the latest move signals an acceptance that the American duo's future control is unsustainable.

Although the Liverpool owners denied yesterday that Merrill Lynch has been engaged, The Times understands that auditors looked at Liverpool's books last week with a view to finding a buyer. So far, the search appears to be unsuccessful.

Sheikh Mohammed, the Crown Prince of Dubai, has maintained a longstanding interest in acquiring Liverpool but has balked at the price tag set by the American pair, which is upwards of £550

The owners admitted last month that plans for a new stadium in Stanley Park have been put on hold indefinitely. RBS is bracing itself for a campaign of protest by the Spirit of Shankly, a Liverpool supporters' union.

An offer from Dubai of £500million has been on the table for many months, but there has been minimal contact between the Sheikh's representative, Amanda Staveley, and the American camp over the past few months.

Rumours of interest from Robert Kraft have swirled around Anfield in the past few weeks but it is not believed that the owner of the New England Patriots American football team is a viable bidder for Liverpool.

http://www.timesonline.co.uk/tol/sport/football/premier_league/liverpool/article4988378.ece

the fat lady is getting her song ready

[tsb]

£550! At that price, I'm interested!

[dom9]

From The Telegraph...

"Liverpool owners Tom Hicks and George Gillett intend to use the club's profits to service interest on the loans they incurred to buy the club, The Daily Telegraph has learned.

Sources close to the owners insist that the profits, £15 million up on 2007, show that the club's debt is sustainable and can be comfortably serviced.

However, the planned use of profits will anger fans who have long suspected that Hicks and Gillett intended to take money out of the club to service their loans.

Sources with knowledge of the Americans' intentions confirmed yesterday that Hicks and Gillett intend to use over half of the club's anticipated profits of £40 million for the last financial year to service £25 million in interest payments.

Hicks and Gillett initially borrowed £298 million to buy the club in February 2007, refinancing the deal with a £350 million loan earlier this year from RBS and Wachovia. Of that, £105 million was forwarded to the football club, with £245 million in a holding company.

The owners have also secured a six-month extension of the terms of the loan to July 2009.

Sources point to recent commercial deals worth £10 million as evidence that the club's commercial revenue streams are under-performing, and insist the owners are committed to Liverpool. "

To be fair, that has been the case since they bought the club.