Thursday, 13 November 2008

Banks To Reposses Liverpool As Reds Face Financial Meltdown?

Premier League club Liverpool are on the brink of financial meltdown if they cannot refinance the £350million loan owed to the bank or pay the amount off in January, according to Keith Harris the person at the centre of several takeover deals in the Premiership.

Harris has expressed concerns that unless the Merseyside club can repay or get a six-month extension to the loan due in January. Then there is even the possibility of Anfield being repossessed by the banks that the loan is owed to in light of the recent credit crunch.

The Reds American co-owners Tom Hicks and George Gillett Jr owe a reported £350million to two banks, the Royal Bank of Scotland and Wachovia, both of which have suffered in the current financial climate, with Harris believing that Liverpool will have to cash in on some of their star players like Steven Gerrard, Fernando Torres and Robbie Keane in order to balance the books at Anfield or face being repossessed in the worst case scenario.

Harris has also revealed that it is very much a buyers market in terms of selling clubs, with potential investors not so ready to part with their money to own a Premier league club.

“The one that worries me is Liverpool. It has never been more difficult to find buyers,” Harris said.

“It's no longer a question of price negotiation - it's should we? People are wondering if now is the time to spend.

“Liverpool's debt is due in January, with maybe a six-month extension.

“The two banks which are the principal lenders - the Royal Bank of Scotland and Wachovia - are two of those that have suffered. Whether they want to lend it again or not, they may not be able to.”

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