The Liverpool managing director, Christian Purslow, has become embroiled in a dispute with a supporters' group over allegations that he accused Tom Hicks and George Gillett of making "unforgiveable" promises and having no money to invest in the club, despite being ordered by the Royal Bank of Scotland to reduce Anfield's debt by £100m before July.
Purslow denies the comments are representative of a meeting on 21 January with members of the Spirit of Shankly Supporters Union (SOS), which has led the protests against Liverpool's co-owners. Purslow met 12 members of the group and although written notes, but no recordings, were permitted at the exchange the two parties have been unable to reach agreement on the minutes. The stand-off prompted SOS to publish its own and Purslow's contrasting versions of the meeting today, with supporters invited to make their judgment on another embarrassing affair for the Anfield hierarchy.
Both sides record a frank admission from Purslow that the RBS want him to reduce Liverpool's debt from £237m to £137m before the co-owners' refinancing deal comes up for renewal in July. But the Anfield official admits he "cannot guarantee" a time-frame for investment that would prevent Hicks and Gillett being forced to put the entire club up for sale.
Purslow confirmed in his version: "One of our key priorities is to reduce the debt by £100m. This is a requirement from our bankers and will allow us to look at a more flexible and longer-term refinancing with our bankers when this investment is brought in. Ideally we would like a three- or four-year refinancing deal rather than the shorter ones we have had recently. The targeted reduction in borrowings was agreed by the bank, CP [Purslow himself] and the owners when I was appointed. The £100m investment will be made by the issuance of new shares, and will not go towards anything else other than paying down the debt, reducing it to £137m. This new investment will also mean a dilution of the current ownership."
Interpretations of the Americans' and the RBS's long-term positions differ wildly, however. Minutes recorded by SOS but not Purslow include an alleged admission that Hicks' and Gillett's £100m asking price for a 25% stake of Liverpool is deterring potential investors. "No one would invest at the level they want," Purslow is alleged to have said. There was also a statement that, in terms of Rafael BenÃtez's transfer budget: "We will only have what we make and generate. The budget will only change if we get a sugar daddy."
Further claims in the SOS minutes include a bleak assessment of the capital available to Hicks and Gillett, despite their sale of sporting franchises in the US and Canada, allegedly given by Purslow while he attempts to convince the meeting that Liverpool will find investors.
"LFC is for sale. It will be sold," record SOS. "The owners have to sell, they are out of money. The bank want it sold, the fans want it sold and people want to buy it. The problems on the pitch at the minute aren't the fault of the owners. It is not simple enough to say that new owners will guarantee results on the pitch."
Purslow also allegedly blamed the former majority owner David Moores and the ex-chief executive Rick Parry for Liverpool's present predicament. The minutes record: "Those who sold the club are responsible too. The promises of Hicks and Gillett are unforgivable. Hicks and Gillett cannot hang on to the club."
SOS defended its decision to release both transcripts of the meeting. A spokesperson said: "We recognise that this step may put our relationship with the senior management of the club at risk, but the risk is worth it when balanced with putting out a version of a meeting that in good conscience we could not accept as a fair representation of what was said."
Purslow denies the comments are representative of a meeting on 21 January with members of the Spirit of Shankly Supporters Union (SOS), which has led the protests against Liverpool's co-owners. Purslow met 12 members of the group and although written notes, but no recordings, were permitted at the exchange the two parties have been unable to reach agreement on the minutes. The stand-off prompted SOS to publish its own and Purslow's contrasting versions of the meeting today, with supporters invited to make their judgment on another embarrassing affair for the Anfield hierarchy.
Both sides record a frank admission from Purslow that the RBS want him to reduce Liverpool's debt from £237m to £137m before the co-owners' refinancing deal comes up for renewal in July. But the Anfield official admits he "cannot guarantee" a time-frame for investment that would prevent Hicks and Gillett being forced to put the entire club up for sale.
Purslow confirmed in his version: "One of our key priorities is to reduce the debt by £100m. This is a requirement from our bankers and will allow us to look at a more flexible and longer-term refinancing with our bankers when this investment is brought in. Ideally we would like a three- or four-year refinancing deal rather than the shorter ones we have had recently. The targeted reduction in borrowings was agreed by the bank, CP [Purslow himself] and the owners when I was appointed. The £100m investment will be made by the issuance of new shares, and will not go towards anything else other than paying down the debt, reducing it to £137m. This new investment will also mean a dilution of the current ownership."
Interpretations of the Americans' and the RBS's long-term positions differ wildly, however. Minutes recorded by SOS but not Purslow include an alleged admission that Hicks' and Gillett's £100m asking price for a 25% stake of Liverpool is deterring potential investors. "No one would invest at the level they want," Purslow is alleged to have said. There was also a statement that, in terms of Rafael BenÃtez's transfer budget: "We will only have what we make and generate. The budget will only change if we get a sugar daddy."
Further claims in the SOS minutes include a bleak assessment of the capital available to Hicks and Gillett, despite their sale of sporting franchises in the US and Canada, allegedly given by Purslow while he attempts to convince the meeting that Liverpool will find investors.
"LFC is for sale. It will be sold," record SOS. "The owners have to sell, they are out of money. The bank want it sold, the fans want it sold and people want to buy it. The problems on the pitch at the minute aren't the fault of the owners. It is not simple enough to say that new owners will guarantee results on the pitch."
Purslow also allegedly blamed the former majority owner David Moores and the ex-chief executive Rick Parry for Liverpool's present predicament. The minutes record: "Those who sold the club are responsible too. The promises of Hicks and Gillett are unforgivable. Hicks and Gillett cannot hang on to the club."
SOS defended its decision to release both transcripts of the meeting. A spokesperson said: "We recognise that this step may put our relationship with the senior management of the club at risk, but the risk is worth it when balanced with putting out a version of a meeting that in good conscience we could not accept as a fair representation of what was said."
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