Should Americans own top Euorpean Clubs?
September 23rd 2010 11:03
Article i read on ESPN about Liverpool.
Liverpool is talking to a "small number" of takeover suitors while its board continues to block attempts by the club's American owners to refinance the team's debt ahead of a repayment deadline next month.
While saying that Liverpool is "not going bust" and will not enter bankruptcy protection, managing director Christian Purslow on Wednesday warned that the 18-time English champions can only "just about" afford to meet the bank payments to service the debt.
American co-owners Tom Hicks and George Gillett Jr. put the team up for sale in April and face an October deadline to repay the club's debt, which has grown to more than $438 million from $371 million since April because of penalty charges.
No formal offers have been received for the franchise, with Hicks seeking about $940 million for the team he and Gillett jointly acquired for about $431 million in a leveraged takeover in 2007.
Hicks wants to refinance his loans in the hopes he can stall the sale process and buy time for the team to gain value.
Purslow is opposed to the owners' bid to refinance the debt -- as are fellow board members Martin Broughton, the chairman hired in April to oversee the sale process, and commercial director Ian Ayre. They already had rejected a refinancing proposal Hicks made earlier this year.
"Any incurrence of indebtedness by Liverpool Football Club needs full board approval," Purslow said. "The non-owner directors have made it clear that's not what we want to see happen ... [it's] very unlikely."
Purslow said Liverpool is not in danger of entering bankruptcy protection, which happened to Hicks' baseball team, the Texas Rangers, before being sold by auction in August.
"We have cash, we are solvent. We have banking facilities which last beyond the end of next season, and we are heavily scrutinized by the Premier League," he said. "Liverpool Football Club is not going bust. We have an extremely healthy business with record revenues and we are highly profitable ...
"It is true that far too much of that benefit currently services loans, interest costs and bank charges. Can we afford to meet them? Just about."
Purslow stressed that any buyer must reduce or eradicate the debt, vowing "not to make the mistake of sanctioning any transaction that puts the club in a worse position. ... The only thing worse than no sale is the wrong sale."
Having been runner-up in the 2008-09 title race, Liverpool has had its worst start to a season since 1992-93, winning only one of its five matches to sit a point above the relegation zone.
Okay know that you have read article what do you think?
I am an American and would like to think that we can run a succesful team but i wonder if it is better for locals to own their football clubs.
I know Manchester United is owned by an American and Liverpool. I wonder how many other teams are owned by foreginers?
| 67 |
| Vote |
Add To: 
subscribe to this blog
