Liverpool FC Borrowed Too Much Cash, Says Boss Of RBS

Liverpool FC’s American owners borrowed “too much” money when they bought the club, the boss of the bank which loaned them the cash has said.

The bulk of the Reds’ £237m is owed to the government-owned Royal Bank of Scotland (RBS).

Tom Hicks and George Gillett bought Liverpool from majority shareholder David Moores in 2007 for £219m.

But they incorporated their borrowings into the club’s debt and the interest costs have seen the original figure soar.

RBS and another lender, Wachovia, were originally expecting £100m to be repayed this summer.

But in the spring, they allowed Mr. Hicks and Mr. Gillett another six months to find a buyer for the club and repay the debt.

In an exclusive interview with the ECHO today, RBS chief executive Stephen Hester said before the credit crunch too many businesses, including Liverpool FC, took on too much debt.

He said: “With hindsight, I think there are some businesses which borrowed too much money and Liverpool FC was one of them.”

His comments came less than 24 hours after Anfield chairman Martin Broughton admitted there had so far been no offers for the club.

But he added: “There are a number of interested parties. There is no specific deadline. We are looking to the middle of July-ish for a first round of bids.

“The process is well underway. I have been brought in to oversee the sale process.

“The two owners have stepped aside. Barclays Capital is running the process.”

Mr. Hester was speaking after addressing members of Liverpool Chamber of Commerce at a breakfast event at the city’s Hope Street Hotel.

Recently he found himself on the receiving end of an email campaign by Reds’ fans urging him to reconsider the financing deal with the club.

He added: “It is very clear Liverpool FC has a huge resonance with many people.

“We understand that and we try to be extra-sensitive in the way we behave.

“I think like any business we have to be sensitive to the context in which we are doing business.

“That is why we have been exceptionally understanding when working with this issue.

“It seems to me that it is in everyone’s interest to have an early resolution.

“Everyone involved is working hard to try to get that but it has to be the right resolution.

“I think obviously the club needs to have stability for the future and that is not just a question of ownership.

“It is not just about who owns the club, but also about what their plans are.

“We have not starved Liverpool of money and we have been working closely with the owners.

“But I think all football clubs in the UK would say borrowing in the future is likely to be lower than it has been in the past.”