The Debt

[Helios Creed]

OK, so if Parry managed to stop H&G dumping their entire debt on the club and only allowed them to saddle us with a smaller amount to cover transfer purchases and initial stadium work - where did the money go as we've not spent any money on players and hardly any on the stadium build?

Also, thanks to Parry keeping them separate, the massive debts and operating loss posted for last year are the parent company's, not LFC's, aren't they? And the loss is a result of the huge interest that they owe, so who cares? In fact it's good isn't it - might make them more keen to sell.

LFC itself doesn't have a huge debt, just the £120m or whatever that they did put down to us, but I'd still like to know where that went, although I think I can guess...

[Leyton388]

heres where all our money is going mate!

[Neil Young]

Have you seen Goodfellas when Paulie is invited to take a share in a restaurant by its owner? Remember what happened?

That's the closest I can come to explaining in simple terms what is happening at LFC. In fact it's a perfect analogy.

I'm not even sure it's an analogy. It's pretty much a literal explanation.

It's why I have no hope these people have any interest in the value of what's left when they've sucked all the money out of the club that they can get away with. Kop Holdings folds and their assets will be insulated but we'll be left with nothing. If Kop Holdings does go down - because the banks foreclose due to Kop Holdings' sole asset - the club - being unable to service the loans then the club will go into administration.

OK they probably won't torch the club like Henry did to the restaurant but only because they couldn't get it away with it. Even then I still don't entirely put it past them to try it.

[Craig_H]

I'd take administration to get rid of these cunts.

The fanbase is big enough to recover from it and rebuild within a reasonable period of time.

[Leyton388]

Agree Craig. I think we would be in Admin for about 5 minutes before someone were to buy us at a realistic price.

[Kronenburg1892]

I think administration would do a lot of things, and jesus christ football needs it.

The glory only boys can go **** off.

[Helios Creed]

It seems as though, although Parry did us a huge favour, all he did was minimise the damage. Maybe it was even a deal - you can siphon off £120 odd million, but not the whole lot...

[Tatterdemalion]

OK, so if Parry managed to stop H&G dumping their entire debt on the club and only allowed them to saddle us with a smaller amount to cover transfer purchases and initial stadium work - where did the money go as we've not spent any money on players and hardly any on the stadium build?

Also, thanks to Parry keeping them separate, the massive debts and operating loss posted for last year are the parent company's, not LFC's, aren't they? And the loss is a result of the huge interest that they owe, so who cares? In fact it's good isn't it - might make them more keen to sell.

LFC itself doesn't have a huge debt, just the £120m or whatever that they did put down to us, but I'd still like to know where that went, although I think I can guess...

I thought we owed £237m to RBS and about £120m to Kop Holdings?

[Lecter]

I thought we owed £237m to RBS and about £120m to Kop Holdings?

This is correct I believe

[Tatterdemalion]

Which kind of implies that the full cost of purchase is on the club, whereas the pin money for transfers etc. is the bit that Kop Holdings is on the hook for, doesn't it?

Not quite sure what Helios Creed is going on about.

[Exiled_red]

Didn't we borrow the money for the signings of 07-08 (Torres, Babel etc) that year we had a net spend of about £34m, I also read somewhere that we'd spend about £40-50m on the new stadium (not sure if that's correct). The rest is probably mostly interest on the loans.

[Helios Creed]

"Kop has secured a £350 million financing package, led by The Royal Bank of Scotland and Wachovia Bank NA, which replaces previous financing that had been due in February 2008. The new financing will meet all of the Club's current financial needs and includes facilities to support the commencement of construction for the new stadium at Stanley Park and to provide working capital for the Club and future player transfers. Of the £350 million financing, £105 million is Club-level debt that will be used to fund commencement of construction of the new stadium at Stanley Park, for future player transfers, and to meet the Club's working capital needs.

The other £245 million will be at the holding company level and was used to refinance the £60 million of debt that was on the Club's books at the time of last year's acquisition as well as the loan related to the share purchase at that time. The overall financing is being supported by a combination of owner cash, letters of credit and personal guarantees totaling £225 million, ensuring that the Club remains on a sound financial footing. "

Where did the £105m go?

[Tatterdemalion]

It doesn't make sense to me, but I would suggest that £60m relates to costs over the new stadium and the rest for player purchases when we bought Torres, Babel etc.

[sambirken]

It doesn't make sense to me, but I would suggest that £60m relates to costs over the new stadium and the rest for player purchases when we bought Torres, Babel etc.

Soon we will have spent enough to build a new stadium already from the ****ing design costs etc.

The whole thing is an absolute joke. Hope Hicks has a ****ing accident and breaks both his arms, both legs, and his face.

[Tatterdemalion]

Soon we will have spent enough to build a new stadium already from the ****ing design costs etc.

The whole thing is an absolute joke. Hope Hicks has a ****ing accident and breaks both his arms, both legs, and his face.

Back and Pelvis are much more inconvenient.

It's worth mentioning however, that Moores balked over putting the club £80m in debt for a new stadium in the late 1990s. Well done Dave - lots of foresight there. Never mind, it really isn't your fault.