Liverpool interest payments a GBP 30 million a year

That new loan will cost English Liverpool about GBP 30 million in annual interest payments.

Co-owners George Gillett and Tom Hicks secured GBP 350 million in refinancing on their original GBP 200 million-plus takeover loan from Feb. 2007.

A spokesman for Hicks said, that despite the original statement that only GBP 105 million would be charged to the club, Liverpool will be hit with the remaining GBP 245 million, which is now on the books of Kop Football Ltd., the vehicle Hicks and Gillett used to take over the club.

Liverpool chief executive Rick Parry and former chairman and current director David Mooreshave stopped any efforts to transfer the GBP 220 million from last February's takeover to the club's books.

The new deal has GBP 105 million burdened on the club, with GBP 60 million going toward the new stadium. The remaining sum will cover other club debts.

Club officials had no problem with GBP 8 million a year to cover the GBP 105 million debt. Now, the interest payment alone could wipe out any profit the club makes.

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.