George Gillett’s sale of his 80% stake in an ice hockey franchise in order to raise enough cash to support Liverpool’s banking requirements should be a huge wake-up call for the club.
And it is a problem that cannot be answered simply by buying more players or extending Rafa’s contract or doing any of the other easy things that clubs do as a kind of sporting default.
The club’s auditors, KPMG, recently expressed grave concerns over the financial viability of the business, and it is that aspect of the life of the club – not what happens on the pitch – that needs immediate attention.
It is crazy that a club like Liverpool cannot generate much bigger global revenues to support the football operation and grow the value of the whole business.
The mad cash merry-go-round of the Premier League is fine when the money is in the bank, but when costs start to exceed revenues there is a much bigger problem than just scoring goals or winning matches.
Liverpool need to act on this with a sense of urgency and a credible plan for sustained revenue growth, and perhaps, a wee bit of sensible cost control thrown in.
This includes avoiding too many more transfer dealings that see £17m spent on a player who is only marginally, if at all, better than the player leaving for around £5m.
And it is a problem that cannot be answered simply by buying more players or extending Rafa’s contract or doing any of the other easy things that clubs do as a kind of sporting default.
The club’s auditors, KPMG, recently expressed grave concerns over the financial viability of the business, and it is that aspect of the life of the club – not what happens on the pitch – that needs immediate attention.
It is crazy that a club like Liverpool cannot generate much bigger global revenues to support the football operation and grow the value of the whole business.
The mad cash merry-go-round of the Premier League is fine when the money is in the bank, but when costs start to exceed revenues there is a much bigger problem than just scoring goals or winning matches.
Liverpool need to act on this with a sense of urgency and a credible plan for sustained revenue growth, and perhaps, a wee bit of sensible cost control thrown in.
This includes avoiding too many more transfer dealings that see £17m spent on a player who is only marginally, if at all, better than the player leaving for around £5m.
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