Source: Liverpool_Echo
Liverpool FC borrowed too much cash, says boss of RBS
RBS Steven Hester[LNB]LIVERPOOL FC's American owners borrowed 'too much' money when they bought the club, the boss of the bank which loaned them the cash has said.[LNB]The bulk of the Reds' £237m is owed to the government-owned Royal Bank of Scotland (RBS).[LNB]Tom Hicks and George Gillett bought Liverpool from majority shareholder David Moores in 2007 for £219m.[LNB]But they incorporated their borrowings into the club's debt and the interest costs have seen the original figure soar.[LNB] RBS and another lender, Wachovia, were originally expecting £100m to be repayed this summer.[LNB]But in the spring, they allowed Mr Hicks and Mr Gillett another six months to find a buyer for the club and repay the debt.[LNB]In an exclusive interview with the ECHO today, RBS chief executive Stephen Hester said before the credit crunch too many businesses, including Liverpool FC, took on too much debt.[LNB]He said: 'With hindsight, I think there are some businesses which borrowed too much money and Liverpool FC was one of them.'[LNB]His comments came less than 24 hours after Anfield chairman Martin Broughton admitted there had so far been no offers for the club.
