New global corp sponsor revealed Sept 18th!!

[BrianF80]

I'd also say that the use of PIK's puts the owners in an even worse light than they already have been

On the financial forecast summary it appears the owners are paying off loan term A and putting a proportion of that money into the PIK facility (which is at a higher interest rate)

If you look at the PIK it increased by £50 million upto July 2009 (incidentally this is the amount the loan to RBS was reduced by) from there on in they are increasing the PIK facility whilst decreasing their loan term A

For those that dont know what a PIK is “In leveraged buy-outs, a PIK loan is used if the purchase price of the target exceeds leverage levels up to which lenders are willing to provide a senior loan, a second lien loan, or a mezzanine loan, or if there is no cash flow available to service a loan.”

Presumably the source of the PIK loan is from Kop Holdings (Cayman), ie funded through H&G borrowing elsewhere at a cheaper rate, then making a % on the turn as they flick the debt to LFC.

Quite a trick, really, to borrow money to buy a club, lend that money to the holding company and make a profit on it in the meantime. No ****ing good if you're the company in question though.

Also if you read the final page there is no chance of the stadium before 2012

That's all highly speculative and as likely to be wrong as right IMO.
Do you know if they have actually closed on the PIK?
The PIK is for 50m the paydown required by RBS was 60m.

There is no statement in there that says the stadium won't be built by 2012 (which it won't be anyway given lead times etc) all that's being said is that the enterprise value calculated does not include the costs or revenue associated with the stadium.

Do we even know what this document is?

[Craig_H]

Aye, cos i can think for myself and not believe everything i read in the papers and on football forums that have a hatred for the yanks and will jump on any rumour so long as it fuels their motives. God help us if you ever become a lucid, thought provoking poster, rather than the argumentative soul that you currently are.

No, you believe a couple of proven liar yanks. Good stuff.

[Lecter]

That's all highly speculative and as likely to be wrong as right IMO.
Do you know if they have actually closed on the PIK?
The PIK is for 50m the paydown required by RBS was 60m.

There is no statement in there that says the stadium won't be built by 2012 (which it won't be anyway given lead times etc) all that's being said is that the enterprise value calculated does not include the costs or revenue associated with the stadium.

Do we even know what this document is?

Its a prospectus for investment in / purchase of Liverpool FC

I should have the document in its entirety tomorrow

As soon as I have it it will be uploaded to the web

[fah-q]

huh what?? you dont understand??

No, the punctuation in your sentence makes it hard to follow.

[Kenneth]

Is it human nature that makes people who know **** all about something believe that they do?

[Scratch]

No, you believe a couple of proven liar yanks. Good stuff.

Yeah, i take every word they say as gospel, good on you for spotting that.

Or, more likely, i'm inclined to believe that in order for us to be worth anything to them, we need to be a success on the point. There is little point in them running the club into the ground.

So to that end, i don't believe every little thing i read in the papers (sensationalist, hate driven drivel) or on forums like this one (hate the owners, or you're not a real fan). But you carry on believing what you will.

[Reece]

Is it human nature that makes people who know **** all about something believe that they do?

Who are you referring to? Because to be honest it could be referring to most people on here

[Craig_H]

How many times do they have to lie to you, before you start doubting their halos?

[Darkon]

Is it human nature that makes people who know **** all about something believe that they do?

that and sitting behind the screen on the internet

[Lecter]

in order for us to be worth anything to them, we need to be a success on the point. There is little point in them running the club into the ground.

Are their other Sports companies successful

[Scratch]

Are their other Sports companies successful

Are they a failure then?

[dom9]

Well considering the RBS loan will no doubt be less favourable than the previous one

Considering that the financial information already factors in a renewal of the sponsorship to a value of £14 million per annum

As for Purslow is this the same Purslow who is reportedly an "expert" at tarting companies up before a sale

I'd say its pretty relevant and whats more it tends to rubbish the theory that the owners dont want to sell and that there are hosts of buyers knocking down the door

Read those figures its pretty much valuing the club at £300 million

Are you confident the club is for sale?

[The_weatherman]

Are their other Sports companies successful

They don't need us to be successful, only need us to stay in the top four and maintain a image of competitveness, Hicks said as much himself. Besides comparing the income of a winning side with the costs that follow, they may be better off with a team that only comes close.

[Darkon]

http://www.liverpooldailypost.co.uk/liverpool-fc/liverpool-fc-news/2009/09/15/standard-chartered-deal-will-give-liverpool-fc-manager-rafa-benitez-hugely-enhanced-transfer-kitty-christian-purslow-92534-24689214/

Standard Chartered deal will give Liverpool FC manager Rafa Benitez ‘hugely enhanced transfer kitty', Christian Purslow

RAFAEL BENITEZ’S transfer kitty will be “hugely enhanced” by Liverpool’s record-breaking shirt sponsorship deal.

Managing director Christian Purslow has vowed that a chunk of the cash from the £80million four-year contract with Standard Chartered will be available to spend on new signings.

The biggest commercial deal in the club’s history starts in July 2010 and runs until the end of the 2013/14 season.

“The commercial success of a football club is directly linked to your ability to invest in players,” he said.

“Both in terms of the wage bill, which is probably the single most important aspect, and the availability of excess cash to invest in the transfer market. For us to have such a substantial step up in our financial performance enables us to grow our investment in our players both in wage terms and in competitiveness in the transfer market.

“My ability to support Rafa in terms of the playing squad will be hugely enhanced from next year.

“The stronger we are off the park, the more resources we have to invest in our team.

“And it’s the team that has enabled us to do this deal. It’s not me or my commercial guys, it’s about a bank that wants to be associated with what we do on the pitch.

“This is a reflection of that success. Our job is to invest in that success, nurture it and try to generate the resources to take the team forward.”

After a summer when funds were limited and Benitez was forced to balance the books, the manager was buoyed by news of the biggest shirt deal in football history.

“Rafa is absolutely delighted,” Purslow said.

“When you do something which is a huge step forward and a reflection on everything he’s been doing you feel nothing other than a sense of pride and a sense of success.

“I was with the manager and the players last Friday when we finally put pen to paper and they were all tremendously excited about his endorsement in Liverpool Football Club.”

The deal won’t have any direct impact on plans to build a new 60,000 capacity stadium in Stanley Park but Purslow insists it’s a sign the club’s finances are improving.

[Craig_H]

I hope what Purslow says there is true, and i'll believe it when i see it.