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Liverpool loan is sealed
England - 28 January, 2008
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The loan is in, and English Liverpool has GBP 350 million to help refinance the original takeover of the club last season.
That will temporarily put an end to the ambition of Dubai International Capital to buy up the club, and allow Liverpool owners George Gillett and Tom Hicks to work toward the new much-hyped stadium.
The loan was secured through the Royal Bank of Scotland and Wachovia. Gillett and Hicks hope this will help quell supporter unrest, and put an end to concerns that ownership would change hands.
The money will go toward paying off the GBP 298 million borrowed for last year's takeover. GBP 105 million will go on the club's books. GBP 185 million will go on Kop Investment, a Gillett-Hicks company. Personal guarantees have gone up from GBP 30 million to GBP 55 million.
Gillett and Hicks can curry favour with the supporters if they can sign Javier Mascherano and show faith in manager Rafa Benitez. The owners scotched a GBP 17 million deal with Mascherano in favour of longer terms. With money backing the pair now, they could be inclined to bring the Argentine national into the Liverpool fold on a longer basis.
Benitez has been popular with the fans, but Hicks has made overtures to others.
"This new financing package is a strong vote of confidence in the club's financial strength and a recognition of the exceptional opportunity represented by the construction of the club's new state-of-the-art stadium at Stanley Park," said Hicks in a statement.
That will temporarily put an end to the ambition of Dubai International Capital to buy up the club, and allow Liverpool owners George Gillett and Tom Hicks to work toward the new much-hyped stadium.
The loan was secured through the Royal Bank of Scotland and Wachovia. Gillett and Hicks hope this will help quell supporter unrest, and put an end to concerns that ownership would change hands.
The money will go toward paying off the GBP 298 million borrowed for last year's takeover. GBP 105 million will go on the club's books. GBP 185 million will go on Kop Investment, a Gillett-Hicks company. Personal guarantees have gone up from GBP 30 million to GBP 55 million.
Gillett and Hicks can curry favour with the supporters if they can sign Javier Mascherano and show faith in manager Rafa Benitez. The owners scotched a GBP 17 million deal with Mascherano in favour of longer terms. With money backing the pair now, they could be inclined to bring the Argentine national into the Liverpool fold on a longer basis.
Benitez has been popular with the fans, but Hicks has made overtures to others.
"This new financing package is a strong vote of confidence in the club's financial strength and a recognition of the exceptional opportunity represented by the construction of the club's new state-of-the-art stadium at Stanley Park," said Hicks in a statement.
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