Liverpool stadium plan changes with financial fears

English Liverpool fans are hoping for a place to call home after the one-year delay in building their stadium.

American owners George Gillett and Ton Hicks are getting new loans from RBS and Wachovia, but will not have as much loan money as originally anticipated. The clampdown on credit has hurt even the rich.

As such, the state-of-the-art stadium planned for Liverpool now is not scheduled to start until 2009. And Hicks and Gillett have reined in their plans for the stadium, going with a sparser setup than the high-tech home originally envisioned.

Two architects now are going head-to-head to come up with a revamped design. The plans are due 9 Jan. The changes also mean new planning permission must be granted. That leaves the stadium on target for a 2009 start and a 2011 finish.

Hicks and Gillett are placing a lot on the project. Each is putting down GBP 20 million cash with GBP 75 million letters of credit and GBP 60 million in personal guarantees. That stretches their total obligations from GBP 115 million to 175 million.

Liverpool still is likely to face GBP 30 million annual interest repayments from 2008 onward.

To top it off, Hicks seems to be courting a chance to sell his stake. He has been in talks with Dubai International Capital to sell 15 percent of his share for GBP 150 million. That would give DIC a non-voting minority stake in the club, but a foothold nonetheless. DIC turned down the offer.

Hicks explained the move that he did not want to sell the club, but rather wanted to get cash flowing into Liverpool.

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