Tuesday, May 11, 2010

Pressure To Sell Increases As Liverpool FC Reveal More Huge Losses

The pressure on Liverpool FC to resolve the crisis surrounding the club’s ownership has grown after accounts for the 2008/9 season for parent company Kop Football Holdings revealed annual losses of UK£54.9 million.

According to auditors KPMG, those losses also pushed the club’s total debt to UK£472.5 million by 31st July 2009. Interest payments to creditors Royal Bank of Scotland and Wachowia rose in turn to UK£40.1 million. KPMG admitted to a “material uncertainty” about the club’s ability to continue as a going concern. As a result, interim chairman has discussed the accounts with the Premier League in order to ensure that the club receives a Uefa license for next season.

British Airways chairman Broughton has been appointed by the board in order to find a buyer for the club, and he insists that the prospects for a deal remain healthy. He said: “I expect to be chairman until we sell, so a matter of months. There’s no fixed price, there’s no agreed price — it’s a willing buyer, willing seller trade. We have willing sellers and there are willing buyers out there — that will determine the price.”

Speaking to BBC Radio Five Live, Premier League chief executive Richard Scudamore insisted that he was unconcerned about Liverpool’s long-term future, but admitted that the situation surrounding the club’s ownership and future stadium plans would have to be resolved.

“What is absolutely true is Liverpool, season on season, without additional funding or without benefactor funding, cannot go on losing £55million a year, which is why, in Liverpool’s case, they have got to build a new stadium. That’s fairly self-evident. Clearly, it’s obvious you can’t go on making those losses year in, year out.”

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