Andy Hunter
The Guardian, Tuesday June 10 2008
Rafael Benítez has been assured his transfer budget will not be reduced as a result of the substantial losses incurred during Tom Hicks' and George Gillett's takeover of Liverpool, although the Spaniard's spending rests heavily on the amount raised through player sales this summer.
The first set of accounts released by Kop Holdings Limited, the company formed to facilitate the purchase of Liverpool in February 2007, have revealed a loss of £33m for the year ending July 31, 2007, with £1.2m reclaimed by Gillett and Hicks in personal expenses. Gillett claimed expenses totalling £823,000 for the loans required to complete the initial £220m takeover.
He also claimed £375,000 in travel and legal expenses, of which £100,000 were unpaid as of July 31 last year. Kop Holdings also incurred £133,000 in transaction expenses from Hicks, who claimed £198,000 in travel, legal and other expenses; £244,000 of Hicks' total was listed as unpaid as of July 31, 2007.
The Americans also wrote off £10.32m when they abandoned the original plans for a new stadium on Stanley Park in favour of their own design while Kop Investment LLC, the parent company, made an inter-company loan of £64m to the club to service the interest repayments on January's refinancing package.
Despite these ominous figures, the £350m refinancing deal accounted for this summer's transfer dealings and Benítez's budget is in place, although it is understood to be far from what the manager would like. The Spaniard will have to raise much of his revenue through sales and Liverpool have opened negotiations with Roma regarding the possible sale of John Arne Riise, though the Italians have not met the £5m asking price.
The Guardian, Tuesday June 10 2008
Rafael Benítez has been assured his transfer budget will not be reduced as a result of the substantial losses incurred during Tom Hicks' and George Gillett's takeover of Liverpool, although the Spaniard's spending rests heavily on the amount raised through player sales this summer.
The first set of accounts released by Kop Holdings Limited, the company formed to facilitate the purchase of Liverpool in February 2007, have revealed a loss of £33m for the year ending July 31, 2007, with £1.2m reclaimed by Gillett and Hicks in personal expenses. Gillett claimed expenses totalling £823,000 for the loans required to complete the initial £220m takeover.
He also claimed £375,000 in travel and legal expenses, of which £100,000 were unpaid as of July 31 last year. Kop Holdings also incurred £133,000 in transaction expenses from Hicks, who claimed £198,000 in travel, legal and other expenses; £244,000 of Hicks' total was listed as unpaid as of July 31, 2007.
The Americans also wrote off £10.32m when they abandoned the original plans for a new stadium on Stanley Park in favour of their own design while Kop Investment LLC, the parent company, made an inter-company loan of £64m to the club to service the interest repayments on January's refinancing package.
Despite these ominous figures, the £350m refinancing deal accounted for this summer's transfer dealings and Benítez's budget is in place, although it is understood to be far from what the manager would like. The Spaniard will have to raise much of his revenue through sales and Liverpool have opened negotiations with Roma regarding the possible sale of John Arne Riise, though the Italians have not met the £5m asking price.
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