bakchod said:who ever owns liverpool doesnt need to build hotels or casinos around its stadium because they rake in around 165 m pounds annually and though its relatively healthy operating profits in are wiped out by interest payments on their borrowings from the Royal Bank of Scotland and the US bank Wachovia due to their loan on leveraging and even after an annual interest payments of 36.5 m pounds on their loan they reported a net +80 m operating profits for the last year.Its clear this is the factor that attracts most of the investors , the only thorn being the higher valuation expected by hick & gilette who are playing late to squeeze most of the club , but that has changed after broughton was brought into the board as chairman to see a formidable sponsor who clears the debt of the club and get significant investment in.
compared to this city had
Turnover: £87.0m
Operating profit: –£34.2m
Net debt: £194.4m
Interest payment: £14.4m
but the normal rules of business do not apply to us. The latest accounts show that with a turnover of £87m running at an operating loss of £34m and with an accumulated debt to Sheikh of £194m. Since then, the club has spent £117m on players, including Emmanuel Adebayor and Carlos Tevez. But Sheikh converted City's entire £305m debt to him into equity.
this is the game all big finance guyz play and i think the current Liverpool suitors are no strange to this , even though they just have to clear a debt of around 300 m pound by buying the club and rest assured they will add on a significant amount of investment in the squad to take their turnover even higher , which is not a longshot compared that LFC enjoys a huge popularity in asia.
-- Thu Aug 05, 2010 1:44 pm --
anyone here
This is nonsense in many ways. Big finance "guyz" don't like losing money. The city deal is not and already could never be about financial return. Liverpool's revenue is not eaten up just by financing - football wage bills are crazy beasts. The Liverpool turnover without Champions League ie 2010-2011 will be £100-110m and the wage bill probably be somewhere around £85-95m so even before costs and financing it's a loss maker. And thats before we talk about the need to finance and build a new stadium. For the foreseeable future Asia is not the cash cow it's made out to be. The media deals are all collective and "shirt sales" add little to a clubs bottom line (contrary to the media myth). It's not a good "investment".