PtG Article 31.05.2010

Problems with Liverpool's Asking Price

English Premier League club Liverpool has been on the market for over a month now with co-owners Tom Hicks and George Gillett Jr valuing the club at GBP 600 million.

The club's lender Royal Bank of Scotland (RBS) has estimated the club's worth at around GBP 400 million and is growing impatient with the owners inflated sale price says the Times. It is possible that the bank will pressurise the club to lower the price to get an offer. The market assessment of Liverpool's value is GBP 350 million.

The club has a GBP 290 million debt with RBS and Wachovia which becomes due in July.

Liverpool has a total debt of GBP 472.5 million as of July 31st 2010. Liverpool's parent company Kop Holdings is responsible for GBP 351 million and it is paying GBP 40.1 million as interest on bank loans. The club's auditor KPMG has expressed concerns about the club's financial uncertainty two years in a row.

Source: euFootball.BIZ (link disabled)