07 September, 2010

Liverpool Considering Mortgaging Players and Stadium, Again

Wow, how hard up are Hicks and Gillett (Liverpool's two majority owners)? Well, so desperate that they have considered mortgaging their players and stadium to refinance loans with Royal Bank of Scotland so as to make their ~£297 million in loans/fees that they have run up since purchasing the team once this summer and have talked of trying again this month.

Now, granted, the EPL has approved the possible takeover by RBS on October 6th should Liverpool not make it's deadline so they won't go into administration like Portsmouth did last year (administration would result in a point deduction and usually spells relegation), but this has to be bad. This has become an ongoing joke for them as Liverpool has failed to make transfer money available, has lost one of their best coaches in decades and now seem likely to lose owners.

Hicks/Gillett had turned down bids before as they wanted what seemed to be a substantial markup for the team (akin to flipping a house before the market crunch) of around £800 million, since down to £600mil and now possible buyers have backed out as they might now be able to pick up the team in the neighborhood of £150-£200mil. Quite a nice deal but definitely a big wash for the two financiers that stupidly purchased something they had no business buying at a price they couldn't afford and have since alienated quite a few fans.

Hicks/Gillett, while you are at it, I have some swampland down in the Florida panhandle area that I'd love to sell you at a substantial markdown. It's a great turnaround area and right on the coast and local to quite a few oil deposits. I hear you can make a lot of money with it.

Photo: Yourman64

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