Liverpool's American owners have firmly rejected suggestions that they are facing serious problems with debt amid the pressure of the global credit crunch.
Although both Tom Hicks and George Gillett have not directly commented, they are understood to be infuriated by the intervention of Keith Harris, one of English football's main power brokers, who has publicly expressed his concern over developments on Merseyside.
"Keith has an agenda here and is making mischief – the truth is our debt is lower than people think and manageable given the club's profitability," said a source close to Liverpool's owners.
"All the top clubs have debt, and Liverpool's is in fact lower than Arsenal and Manchester United."
The Americans are also adamant that the actual serviceable level of debt to the Royal Bank of Scotland and Wachovia is around £200 million rather than the £350 million loan figure that is regularly reported.
Harris was in Zurich with other leading figures in football at the International Football Arena on Tuesday.
"The one that worries me is Liverpool," he said. "The banks are two of those that have suffered, so whether they want to lend it again or not, they may not be able to. What normally happens in business is, if the banks won't finance, you have to raise equity."
Sources close to the Americans, however, launched a defence of their business plan. They put the actual drawn debt at £265 million, with the remaining balance of the loan made up of an available overdraft facility of £50 million and an undrawn figure of £30 million that will go towards the new stadium.
Hicks and Gillett also had £60 million of cash collateralisation pledged towards the banks, leaving a net debt figure of £205 million. That would be only just over five times the serviceable profitability of £35-40 million, a figure that is argued to provide sustainability and be similar to other competitors, such as Manchester United and Arsenal. Hicks and Gillett plan to use Liverpool's profits to pay the interest on the loans.
The Americans financed their initial purchase of the club with a £298 million loan that was replaced in January by a £350.5 million facility with the same banks. They also remain confident that a six-month extension to their loan is available and can be triggered at any time.
That would take them to July next year and would avert any danger of needing to raise equity by selling players in the January transfer window. Pressure, though, has been mounting in Liverpool on politicians to lobby the banks into refusing to extend the loan beyond January.
Share Liverpool FC, the supporters' group, are also attempting to organise the fan base into collectively raising the funds to bid either independently or with another investor for the club.
A bid for the club of £500 million has been on the table since earlier this year, but it is believed that the potential Dubai investors might be reluctant to maintain that offer as the deadline on the loan nears.
Although both Tom Hicks and George Gillett have not directly commented, they are understood to be infuriated by the intervention of Keith Harris, one of English football's main power brokers, who has publicly expressed his concern over developments on Merseyside.
"Keith has an agenda here and is making mischief – the truth is our debt is lower than people think and manageable given the club's profitability," said a source close to Liverpool's owners.
"All the top clubs have debt, and Liverpool's is in fact lower than Arsenal and Manchester United."
The Americans are also adamant that the actual serviceable level of debt to the Royal Bank of Scotland and Wachovia is around £200 million rather than the £350 million loan figure that is regularly reported.
Harris was in Zurich with other leading figures in football at the International Football Arena on Tuesday.
"The one that worries me is Liverpool," he said. "The banks are two of those that have suffered, so whether they want to lend it again or not, they may not be able to. What normally happens in business is, if the banks won't finance, you have to raise equity."
Sources close to the Americans, however, launched a defence of their business plan. They put the actual drawn debt at £265 million, with the remaining balance of the loan made up of an available overdraft facility of £50 million and an undrawn figure of £30 million that will go towards the new stadium.
Hicks and Gillett also had £60 million of cash collateralisation pledged towards the banks, leaving a net debt figure of £205 million. That would be only just over five times the serviceable profitability of £35-40 million, a figure that is argued to provide sustainability and be similar to other competitors, such as Manchester United and Arsenal. Hicks and Gillett plan to use Liverpool's profits to pay the interest on the loans.
The Americans financed their initial purchase of the club with a £298 million loan that was replaced in January by a £350.5 million facility with the same banks. They also remain confident that a six-month extension to their loan is available and can be triggered at any time.
That would take them to July next year and would avert any danger of needing to raise equity by selling players in the January transfer window. Pressure, though, has been mounting in Liverpool on politicians to lobby the banks into refusing to extend the loan beyond January.
Share Liverpool FC, the supporters' group, are also attempting to organise the fan base into collectively raising the funds to bid either independently or with another investor for the club.
A bid for the club of £500 million has been on the table since earlier this year, but it is believed that the potential Dubai investors might be reluctant to maintain that offer as the deadline on the loan nears.
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