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RBS dismiss fears over Liverpool debt

26 Jun 2009 12:41:00

RBS dismiss fears over Liverpool debt

Liverpool's bankers Royal Bank of Scotland have dismissed fears about the future of the club by stressing they are "financially healthy and able to service comfortably its debt". American owners Tom Hicks and George Gillett are currently in negotiations to refinance the £350million loan they took out to buy the Reds two years ago, with less than a month to go until the deadline for an agreement. A deal is believed to be close and despite speculation about potential financial meltdown at Anfield RBS, who have taken the unprecedented step of writing to fans to explain the situation, are happy to give their full support to the Merseysiders. According to the Liverpool Daily Post the bank has stressed they have a "long-term relationship with the club, and we look forward to this continuing for many years to come". "In our view and that of the executive management of the club, it is financially healthy and able to service comfortably its debt obligations from cash flow generated by its playing and commercial activities. "It is in our commercial interest to support the club . . . so that it can continue to perform successfully on and off the pitch." Hicks and Gillett currently pay around ¦pound;35million a year in interest on their loan and recently auditors KPMG went public with their concern over the level of debt being incurred by Kop Football Holdings, Liverpool's parent company, after it posted losses of ¦pound;42.6million in the year ending July 2008. That was in contrast to the football club business itself, which made a profit of ¦pound;10.2million. The bank have dismissed concerns about the potential fragility of Liverpool's finances, stressing there is a clear dividing line between what the club owes them and what debt Hicks and Gillett have taken on.


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