New global corp sponsor revealed Sept 18th!!

[The_weatherman]

Didn't he just recently say that this would have an impact on the building of the stadium???

[James P]

Even if the document is genuine, it doesn't prove very much. Forecasts are just that - an estimate - and they can be made to tell pretty much whatever story the creator wants them to. In my line of work I've produced my fair share of such documents, and each one has a different slant, as the agenda behind the document is different.

If the document is for RBS, or for a potential investor / buyer, then it will paint the most conservative, cash neutral picture possible. They are hardly going to show the club spunking huge sums of money on players on the basis that it might bring greater success and therefore commercial return, as that 'might' is a real issue for lenders and investors. That's the issue with football as a business - more so than virtually any other industry (and let's face it, football is becoming just that) the correlation between spending and success is very tenuous. This isn't a question of increasing margins and growing market share to make a business successful, it's a question of winning at least one of four possible trophies, the odds against which are pretty high.

I don't particularly trust the Americans, but I do sympathise with the situation that has arisen. Without the economic crisis, I honestly believe that they would have followed a pretty similar path to the Glazers, but without anything like the level of debt. We would have had a new stadium, which would have generated significant additional income, which would have allowed us to increase investment in players.

The fact is that we all have to accept that football is a business. IMHO had Moores and Parry stayed, we would be in a far worse situation, as the investment that has been made on the likes of Torres would likely have never happened. Without a billionaire willing to risk huge sums of money, we, like the vast majority of clubs, have to balance the books and maintain cashflow to stay alive. Like every other business, our plans have been affected by the economic crisis. And in a situation where a Glen Johnson costs £17m (and don't think that I don't rate him, because I do) it's hardly surprising that we aren't able to go out and add half a dozen world class players to the squad each summer, because the consequential revenue increase is unlikely to cover the investment.

This new deal is a real positive, as it indicates that we have in place a team capable of exploiting the real commercial value of the club. That in turn should lead to greater cash being available to reinvest. If you're expecting this to happen overnight, you'll be disappointed. If you're prepared to give it time, you might just be pleasantly surprised.

[Lecter]

http://www.liverpooldailypost.co.uk/...2534-24689214/

The most important parts of Purslows interview is the bits below and highly significant considering we have broken even in the transfer market this season

Its clear that ANY future transfer budget must also include contract renewals and the wages of any players we might sign

“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.

[Daniel mote]

this is why the owners need to be forced out..

[Lecter]

Are they a failure then?

Business wise its hard to tell but in sporting achievements they are just middle of the road

[Tee]

The most important parts of Purslows interview is the bits below and highly significant considering we have broken even in the transfer market this season

Its clear that ANY future transfer budget must also include contract renewals and the wages of any players we might sign

“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.

Exactly what I picked up on as well. Time will tell and I fear there could be more fireworks in January to derail our season.

Edit - the new sponsorship deal starts next Summer, so I cannot see any money being spent in January, unless Rafa sells again.

[Lecter]

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.

[Roboklopp]

If that whole 4th place thing is the case, which I tend to believe, they will be bricking it because of City. They'll need to input more than they thought to keep that secure.

[Lecter]

If that whole 4th place thing is the case, which I tend to believe, they will be bricking it because of City. They'll need to input more than they thought to keep that secure.

I agree

I cant see how we can continue to not invest in the transfer market (long term) AND maintain a 4th place spot

Sooner or later something will have to give

[dom9]

The most important parts of Purslows interview is the bits below and highly significant considering we have broken even in the transfer market this season

Its clear that ANY future transfer budget must also include contract renewals and the wages of any players we might sign

“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.

I'd be surprised if that hasn't always been the case.

The budget is the budget. It is finite, and has to pay for all outgoings, be it transfer fees or wages. To say there used to be more than one budget, but now there is only one does not make any sense.

[Darkon]

The most important parts of Purslows interview is the bits below and highly significant considering we have broken even in the transfer market this season

Its clear that ANY future transfer budget must also include contract renewals and the wages of any players we might sign

“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.

Its always been like that mate. All clubs operate in that way. They look at the combined wage/transfer budget for the year, and what is not spend on wages can be put in to a transfer kitty and you can put unused wages in to transfers and that way have more room to manoeuvre.

This has nothing to do with the americans - its the way its done...

[JohnDoe]

Lecter

I'm looking forward to the uploaded documents.

Thanks for the effort.

[Daniel mote]

yes but the idea when the owners took over was to be for us to be competetive at the top end of the transfer market.Not having zero transfer spend

[cream]

http://www.liverpooldailypost.co.uk/...2534-24689214/

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.

I suppose the extra £4-5m for transfers is better than nothing.

[-V-]

James P and Lector- Good posts.

Ofcourse we would have been in a much worse position had Moores stuck around and not sold but as fans we will never be satisfied until we have success. Stability and success

Personally, I think this standard chartered deal has to be the first of a few. They may be our biggest corporate partner now but I would be surprised if we were not signing more smaller deals with other big companies for other types of sponsorship.