Tom Hicks, the Liverpool co-owner, has joined the charm offensive after the signing of the most lucrative sponsorship deal in the club’s history by promising to cut debt levels at Anfield and claiming a new era of stability is under way.
The Texan businessman went as far as to compare Liverpool’s financial situation favourably with Manchester City, arguing that the business model at the City of Manchester City Stadium is “not sustainable”.
Hicks, who also revealed that Carlsberg will continue its association with Liverpool despite being ousted as the club’s main sponsor after the signing of an £80 million four-year agreement with Standard Chartered, the international bank, is the latest figure at Anfield to claim that Liverpool are in rude financial health, in the wake of similar statements by George Gillett Jr., his co-owner, and Christian Purslow, the managing director.
“You have to look at cashflow rather than accounting, and we intend to operate Liverpool where it has a very strong positive cashflow so we have the resources to be as competitive as possible on the pitch — that’s our commitment,” Hicks said. “Our debt levels are at a comfortable level and we are going to continue bringing it down. Our goal is to have less debt than any of the top clubs.
“We are seeing for the first time the real power of the brand and the power of a well-managed club. I feel very good about the entire club. The total sponsorship contracts should probably bring in £25-26 million of incremental revenue a year. It’s a huge development for the club.
“We have an existing contract with Carlsberg until the end of the season. Between now and the end of the season we will finalise new arrangements where we will retain the Carlsberg special sponsorship packages. They will be one of our key sponsors, just not on our shirts.”
Rafael Benítez, the Liverpool manager, hopes to add to his squad when the transfer window reopens in January, something of which Hicks is aware. “Knowing Benítez I suspect he’s got his eye on part of it,” Hicks said. “As we build our revenues, it gives us the ability to be more competitive on the pitch. Everything is very stable. I think the management situation at the club has dramatically improved. There is a real sense of optimism.”
While Liverpool, who met Debrecen at Anfield last night in the Champions League, spent modestly during the summer transfer window, City’s outlay was in excess of £120 million, a figure that Hicks says flies in the face of economic reality. “It’s not sustainable at City, they won’t continue to invest like that as it doesn’t make good economic sense,” he said. “Hopefully they will make the improvements they need to make and then run it more like a business. The smart clubs operate for the long term.”
The Texan businessman went as far as to compare Liverpool’s financial situation favourably with Manchester City, arguing that the business model at the City of Manchester City Stadium is “not sustainable”.
Hicks, who also revealed that Carlsberg will continue its association with Liverpool despite being ousted as the club’s main sponsor after the signing of an £80 million four-year agreement with Standard Chartered, the international bank, is the latest figure at Anfield to claim that Liverpool are in rude financial health, in the wake of similar statements by George Gillett Jr., his co-owner, and Christian Purslow, the managing director.
“You have to look at cashflow rather than accounting, and we intend to operate Liverpool where it has a very strong positive cashflow so we have the resources to be as competitive as possible on the pitch — that’s our commitment,” Hicks said. “Our debt levels are at a comfortable level and we are going to continue bringing it down. Our goal is to have less debt than any of the top clubs.
“We are seeing for the first time the real power of the brand and the power of a well-managed club. I feel very good about the entire club. The total sponsorship contracts should probably bring in £25-26 million of incremental revenue a year. It’s a huge development for the club.
“We have an existing contract with Carlsberg until the end of the season. Between now and the end of the season we will finalise new arrangements where we will retain the Carlsberg special sponsorship packages. They will be one of our key sponsors, just not on our shirts.”
Rafael Benítez, the Liverpool manager, hopes to add to his squad when the transfer window reopens in January, something of which Hicks is aware. “Knowing Benítez I suspect he’s got his eye on part of it,” Hicks said. “As we build our revenues, it gives us the ability to be more competitive on the pitch. Everything is very stable. I think the management situation at the club has dramatically improved. There is a real sense of optimism.”
While Liverpool, who met Debrecen at Anfield last night in the Champions League, spent modestly during the summer transfer window, City’s outlay was in excess of £120 million, a figure that Hicks says flies in the face of economic reality. “It’s not sustainable at City, they won’t continue to invest like that as it doesn’t make good economic sense,” he said. “Hopefully they will make the improvements they need to make and then run it more like a business. The smart clubs operate for the long term.”
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