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Liverpool Agrees Bank Debt Deal

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http://news.bbc.co.uk/1/hi/business/8170699.stm

Liverpool Football Club - which owes two banks £350m - has renegotiated its debt with the Royal Bank of Scotland.

Club owners Tom Hicks and George Gillett are believed to have extended the £290m RBS debt for another year, but agreed to pay back £60m.

Negotiations between RBS, Wachovia and the owners have been prolonged, with fears the banks may call in the loans.

Latest accounts show Kop Holdings, the parent company of the Anfield club, lost £42.6m in the year to August 2008.

Annual figures showed that interest payments accounted for £36.5m of those losses.

New players

The club has continued to spend on new players as it looks to try and win the top prizes in the game, with Portsmouth defender Glen Johnson joining in a £17.5m move.

But the owners have failed to find the money to build the club's new stadium, with preliminary work on the Stanley Park venture halting during last season.

It appears that our taxpayer bank is now bailing out football clubs.

It won't give money to small businesses but if your a company paying out millions in wages to a few people then they are happy to throw money at you especially if your already loss making.

Now that's business sense.

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Unlike Banks/Car companys there are NO SHORTAGE of people willing to buy Liverpool FC. The Turds whom "Own" it now will not offer it up has it would crash the rest of their empire.

I think this IS one where if i was Darling I ring round the middle/far East & FIND Liverpool a new owner!

Mike

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http://news.bbc.co.uk/1/hi/business/8170699.stm

It appears that our taxpayer bank is now bailing out football clubs.

It won't give money to small businesses but if your a company paying out millions in wages to a few people then they are happy to throw money at you especially if your already loss making.

Now that's business sense.

It's about the best loan they can ever make; the club is rock solid.

Those absurdly paid footballers are actually a far better economic bet than the poor sods filling the car manufacturers. That's the consumer speaking.

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I think you've interpreted it incorrectly.

They've forced a £60m margin call on Hicks/Gillett, 20% of the outstanding debt, £30m payable immediately, the rest within 12 months, and only rolled it for 12 months.

It doesn't say how much they're paying for that privelege but I'm sure it will make them wince.

All it does is give them another 12 months to find a buyer - it's not a long-term solution. No new stadium, more losses, they're still f*cked whilst they're carrying that debt.

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