Liverpool FC have survived for another six months, but only just – and their future remains very much in the balance.
Their banks have given the club half a year to repay £350.5m – it was due to be repaid in full on 25 January to Royal Bank of Scotland (partly owned by all British citizens) and the American bank Wachovia.
Liverpool Insolvents (as they are now known) have to pay £30m a year interest, but this part of the money they owe is cheap – only around 5% pa. Normally loans which are not secured on the club’s ground are deemed very risky, and so have much higher interest rates. So if the banks agreed a new loan in July they will want to double that interest rate – and demand a high signing on fee.
Meanwhile George Gillett himself is in trouble. He is involved in Booth Creek Management Corp which deals in cars in the US – not a good idea at the moment. Also they did try like mad to sell the insolvent Liverpool club to Dubai – but Dubai has now closed the doors on that, so they are stuck.
Now on a totally different note: this saturday there’s a new HIGHBURY HIGH on sale, containing amazing, extraordinary, and quite remarkable articles of a type hitherto unseen in the world of football publishing. I heartily recommend it to every supporter, not least because there’s something by me in it. If you hold positive views about Arsenal and the Lord Wenger, this is the place to be reading.
Highbury High will be on sale outside the ground on Saturday for only two pounds. (Listen for the jolly cries of “Brand New Highbury High”).
Subscriptions cost £12 for 6 issues (£15 in Europe, £18 for Rest of the World). Send a cheque for £12 to Highbury High, 11 Tannington Terrace, Gillespie Road London N5 1LE. If you don’t I shall be very upset.
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