Rafa: Liverpool must cut debt to secure long-term future

[AFII]

Liverpool must cut debt to secure long-term future, says Rafa Benitez
Published 23:00 11/12/09 By David Maddock

Rafael Benitez has spelt out the stark financial position at Liverpool, which he blames for his team's downfall this season.

But the Anfield boss yesterday insisted that the club must take short term pain, for long term gain, as they attempt to cut debt and reduce overheads.

Rather like the Chancellor of the Exchequer, the Anfield boss tried to put a positive spin on a fairly grim budget report, as he insisted that - even though he warned there are no funds to spend in the transfer market - he will still deliver a top four position this season.

Benitez hit out at claims by Graeme Souness that the club faces financial meltdown, by insisting that measures taken in the summer are designed to seriously reduce debt, and stave off the threat of ruin.

It is the first time any senior figure at the club has spoken openly about the lack of funds at Anfield, as the manager revealed that he was forced to effectively sell before he could buy last summer, to balance the books.

“I don’t see Liverpool in the same way as Leeds. One of the priorities this year was to reduce the debt so that our position will be much better in the future," he said.

"We were doing a very good job this year trying to reduce the debt. It was one of the most important things that we had to manage. Sometimes you have to think about the big picture and the future of the club and that means you have to do your best on both sides.

"In the summer we were bringing money in and we spent some money, but net we didn’t spend anything. We had a priority to extend the contracts of key players.

"In fact, we are trying to do that now with some players and that is part of the job to save some money to keep the players who can be here in the future - then we need to keep working and find the right players for the right price."

Benitez accepts that in revealing the financial situation, he will be accused of turning the spotlight off himself, and once again onto the beleaguered American owners.

He desperately wanted funds to make more signings before the start of the season, but was denied in his request to land players like Valencia's David Silva, and England international defender Matthew Upson. He even missed out on Michael Turner because of a lack of cash, when he was out up for sale by Hull.

In some ways, he has turned the heat up on the Americans, but he is also trying to highlight the financial reality of the club to fans who believe that the team has under-achieved this season, and should be challenging for the title.

While that seems as far away as ever, given the manager's grim forecast, the Liverpool boss did insist that there is no chance of Manchester City exploiting the financial woes by making a transfer window bid for Fernando Torres or Steven Gerrard.

"No chance. No chance. We will continue doing our job and continue keeping our players because we want to stay in the top four. The players they know that too," he said.

"If Manchester City come up with an attractive offer for the owners it I think it would very difficult to get our players.

"I have a responsibility to manage the things that we have the moment and try to do my best with these things. Can it better? Yes, it can be better but the main thing for me to try and do the job under the current situation."

Mirror

[AFII]

Rafael Benítez turns on his critics as pressure mounts
Tony Barrett

Rafael Benítez has come out fighting in the build-up to Liverpool’s crucial match against Arsenal tomorrow.

The Liverpool manager attacked two of his biggest critics and claimed that the priority of the club has shifted from silverware to debt management.

At a time when Liverpool are celebrating the 50th anniversary of the appointment of Bill Shankly, arguably their greatest manager, the Scot’s latest successor to the Anfield throne has intimated that Shankly’s oft-repeated mantra about Liverpool existing only to win trophies is no longer as relevant as it once was.

Benítez, clearly tired of shouldering all the blame for Liverpool’s season of woe, offered a rare insight into the financial restrictions he is working under at the debt-laden club.

He followed that up by ridiculing the managerial records of Graeme Souness and Jürgen Klinsmann, who led the criticism of the Spaniard after Wednesday night’s Champions League defeat by Fiorentina.

His frustrations came to the surface after a run of only three wins in Liverpool’s past 14 games. But they have been festering since last summer, when his spending power in the transfer market was all but wiped out by the servicing of the £250 million debt loaded on to the club by Tom Hicks and George Gillett Jr, the co-owners.

The American duo had to find £60 million to secure a new refinancing deal with the Royal Bank of Scotland and with interest payments costing in the region of £30 million every year, Benítez has been forced to cut his cloth accordingly, turning a net profit on transfers and missing out on key targets such as Stevan Jovetic, the Fiorentina forward, and Matthew Upson, the West Ham United defender.

Benítez also warned that the continuing era of austerity at Anfield may result in Liverpool’s fans having to wait still longer for the success they crave.

“We have to accept our situation and then try to do the best in the conditions that we have,” Benítez said yesterday. “Can we improve with these conditions? I think so, but it is a question of time.

“When I signed my five-year contract [in March], we knew that we had to work together, so we will try to do the best for the club. Sometimes you can do it and still perform on the pitch and sometimes you have to wait a little bit.

“One of the priorities this year was to reduce the debt, so the club is working very hard to do this. I think that our position will be much better. It was one of the most important things that we had to manage. Along with football issues, we had to manage them together.

“The people inside the club know what the situation is. It is difficult to explain to the media and the fans every single issue, but we have to keep working inside and trying to do the best for the club.

“We have to approach every game and every competition trying to win and also at the same time try to manage with the real situation of the club.

“I have a responsibility and I have to manage the things that we have at the moment and try to do my best with these things. Can it be better? Yes, it can be, but the main thing for me is being ready to do my job.

“Can we do something in January [when the transfer window opens]? We will see, but we are working very hard together.”

While Manchester City plot a further spending spree next month, Liverpool will be left scouring the bargain basement as Benítez looks to bolster his squad with quality, if not quantity.

The Spaniard needs a forward to provide back-up for Fernando Torres, but the likelihood is that he will have to trim up to four fringe players from his squad just to be able to fund the purchase.

In the past 12 months, Benítez has spent about £37 million on Glen Johnson, Alberto Aquilani and Sotirios Kyrgiakos, but brought in more than £50 million through the sales of Xabi Alonso, Álvaro Arbeloa, Robbie Keane, Sebastián Leto and Adam Hammill.

The club’s wage bill has also been reduced after the departures of Sami Hyypia and Jermaine Pennant, and by six further players going out on loan.

Benítez confirmed that, in net terms, he spent nothing last summer and reiterated that the situation may not improve in time for the next transfer window. “We were bringing money in and we spent some money,” Benítez said. “Can we do something in January? We will see, but you cannot guarantee anything.

“We have to work together, the financial department and also the manager of football. We are really pleased about the communication and sometimes you can afford things and sometimes you cannot.”

If either of the owners turns up at Anfield tomorrow they are likely to have to run the gauntlet of fans angry at the way the club have been run since being taken over by the Americans in February 2007.

It is another pair who attracted the ire of Benítez yesterday, however, with Klinsmann — who was once lined up by Liverpool’s owners as his possible replacement — and Souness, widely regarded by the club’s followers as the worst manager in their history, in his line of fire.

“The first time when they told me about him [Klinsmann], they told me that he was an expert in marketing, so I was surprised to see him as an expert in football, too,” Benítez said.

“Honestly, I don’t hear the comments. I switch Sky off. We have to win, we have a responsibility and have to concentrate on our job. If someone talks too much, that is their problem. The fans know the records they both have as managers is fantastic.”

The attack was laced with irony, but Benítez’s latest offensive undoubtedly found its target. After a spell in which it appeared that his heart for a battle had been all but wiped out by a series of disappointments, the Spaniard has come out fighting once again.

However, what his superiors at Anfield make of his latest salvo remains to be seen.

Top four is the target
Rafael Benítez says the return to fitness of his biggest stars has strengthened his belief that Liverpool will finish in the Barclays Premier League’s top four. The visit of Arsenal on Sunday will be the first time this season that the Liverpool manager has been able to pick his first-choice XI, with Fernando Torres, Alberto Aquilani and Steven Gerrard available.

“When you have your big names playing, it is easier for the others,” Benítez said. “They have confidence from that and it is easier to win games. We have been playing without two of the best players in the world in some games and if they are available and we have the majority of players available also, then I think we will win more games in a row and we will be in the top four.”

Times

[tommyg]

Was Stevan Jovetic ever a 'key' target?

[el matador]

rafa hasnt said anything wrong - he hasnt lied.

he's just hinted that most of the money from the alonso sale went towards debt repayment.

What has he said that we didnt already know ?

So how will our two ****wit owners get the hump about this when he hasnt really even attacked them. Everybody (including me) has been moaning for a while and he's just come out and defended his corner.

If we can get rid off babel, voronin, dossena, degen and maybe bring in a couple of players in jan then things might turn around for out benefit.

[Zambian_Red]

If rafa had been given funds to bolster the squad we could have been in a different situation. With all the injuries we've had, we havent had depth which is a main concern.

After last seasaons finish to the league and overall performances week in and week out we all knew we had to buy two or three quality players to take us one step forward. That didnt happen becuase we had to service the debt.

Its not rafa's fault that the owners decision was to pay off some debt with alonso's transfer money. If in the summer we are at the same situation as the current season then i dont know if the remaining star players will commit thier future, cause they will be asking questions as to how are we gonna close the gap or compete with the top three as well as city/spurs/villa.