Liverpool thread

[Bozzie]

Quote from 'Lorenzo23' - Liverpool fan, poster on RAWK and undeniably a European football expert:

"Outside of England, I don't think Silva is highly rated"

 

[taconinja]

Quote from 'Lorenzo23' - Liverpool fan, poster on RAWK and undeniably a European football expert:

"Outside of England, I don't think Silva is highly rated"

In fairness... and I take the piss out of RAWK at every opportunity so I feel I should be fair... that doof seems alone in his opinion.

Now the guy implying they're a bigger club than Real Madrid because they sold 20,000 shirts versus 10,000 shirts for Madrid in Australia? I'm guessing RAWK twits will be all over that smugly proclaiming it to be true.

 

[SilverFox2]

It's 5 years I believe so will take £25m a year out of their cash flow for that time, which is money they can't spend on players. So at a time they should be prioritising getting back into the top four, their owners are more worried about getting their money back. That's on top of a similar amount I think FSG have loaned them which has never been converted to equity as far as I know. As soon as that stand is built, they'll be looking at selling up before the bubble bursts.

With loyalty at such a premium with its supporters and ex players turned pundits fraternity I am surprised to find no criticism of the intentions of the current LFC owners.
Perhaps that is the final card to be played when their exit strategy becomes increasingly obvious.

 

[Matty]

You won't get an awful lot extra out of it immediately, usually you're looking at 10-15 years to make infrastructure costs back.

It's 5 years I believe so will take £25m a year out of their cash flow for that time, which is money they can't spend on players. So at a time they should be prioritising getting back into the top four, their owners are more worried about getting their money back. That's on top of a similar amount I think FSG have loaned them which has never been converted to equity as far as I know. As soon as that stand is built, they'll be looking at selling up before the bubble bursts.

From an FFP perspective though they can use the increased revenue from the additional seats straight away, as the costs incurred to build the extension can be excluded from the calculations. In real terms they'll be bringing in £20m (I seriously doubt that's accurate but lets humour the resident Liverpool fan) additional revenue and giving FSG £23m (£115m loan cost divided by 5 years set out as period to pay it back) for the next 5 years, so actually they'll be £3m a year worse off, for 5 years, before the revenue can drive REAL increases. FSG, technically, could "invest" money into the club to spend based upon the ability to reduce costs by £23m a year in FFP terms.

For example, lets say Liverpool's turnover is £300m a year, and costs are £250m a year, so that gives them profits of £50m they can spend on players (very rough example). After the extension the turnover would be £320m a year, however costs would rise by £23 so would now be £273m a year, giving profits of £47m. However, from an FFP perspective the £23m could be deducted from the costs, so costs would still be £250m. This means they can actually "spend" £70m. However, in real terms the money isn't there. They only made a £47m profit, not a £70m profit. In order to spend £70m FSG would need to invest £23m into the club, otherwise, despite FFP saying they were ok, if they spend £70m their actual cash flow would be a loss of £23m.

Are FSG likely to do this? Of course not, if they were then they'd have given Liverpool the £115m to build the extension, not loaned it to them!

 

[Matty]

John Henry isn't a shareholder of NewBalance.

Only coincidence is both are based in Boston.

Sheikh Mansour isn't a shareholder of Etihad Airways.

Only coincidence is both are based in Abu Dhabi.

Didn't stop John Henry sneering and insinuating that there had been collusion between our owner and Etihad. Funny how hypocrisy works isn't it?

 

[billymumphrey]

Quote from 'Lorenzo23' - Liverpool fan, poster on RAWK and undeniably a European football expert:

"Outside of England, I don't think Silva is highly rated"

"Outside of a book - a dog is mans best friend. Inside of a dog it's too dark to read" - Marx

 

[mrtwiceaseason]

From an FFP perspective though they can use the increased revenue from the additional seats straight away, as the costs incurred to build the extension can be excluded from the calculations. In real terms they'll be bringing in £20m (I seriously doubt that's accurate but lets humour the resident Liverpool fan) additional revenue and giving FSG £23m (£115m loan cost divided by 5 years set out as period to pay it back) for the next 5 years, so actually they'll be £3m a year worse off, for 5 years, before the revenue can drive REAL increases. FSG, technically, could "invest" money into the club to spend based upon the ability to reduce costs by £23m a year in FFP terms.

For example, lets say Liverpool's turnover is £300m a year, and costs are £250m a year, so that gives them profits of £50m they can spend on players (very rough example). After the extension the turnover would be £320m a year, however costs would rise by £23 so would now be £273m a year, giving profits of £47m. However, from an FFP perspective the £23m could be deducted from the costs, so costs would still be £250m. This means they can actually "spend" £70m. However, in real terms the money isn't there. They only made a £47m profit, not a £70m profit. In order to spend £70m FSG would need to invest £23m into the club, otherwise, despite FFP saying they were ok, if they spend £70m their actual cash flow would be a loss of £23m.

Are FSG likely to do this? Of course not, if they were then they'd have given Liverpool the £115m to build the extension, not loaned it to them!

Made the point yesterday the £115m cost is at the start of the build would be very surprised if that's the cost when they Finish building it ?

 

[Matty]

Made the point yesterday the £115m cost is at the start of the build would be very surprised if that's the cost when they Finnish building it ?

Costs are bound to go up, especially if they are getting the Finnish in to do it for them. Everything costs more in Scandinavia.

 

[aguero93:20]

Made the point yesterday the £115m cost is at the start of the build would be very surprised if that's the cost when they Finish building it ?

Just a pity it's not a state funded project ;)

 

[mrtwiceaseason]

Costs are bound to go up, especially if they are getting the Finnish in to do it for them. Everything costs more in Scandinavia.

Dam thought I'd got my extra N out before it was spotted !