Tom and George remember the moment Rafa asked for a transfer budget this year
Rumours from Anfield suggest that the clubs owners are considering plans to dilute their shareholding in an attempt to bring in new capital to our debt saddled club.
Both owners currently own a token 1 share in Kop Holdings Ltd – the company that effectively owns Liverpool FC – giving them an even 50% split of the club.
A new share issue would enable a third investor or group of investors to take a stake in the club.
Several media sources have indicated that the owners may consider giving away (between them) a 30% share of the club for upwards of £100M.
It would be a substantial change in strategy, certainly from Tom Hicks, who has previously insisted that he would not give up his ‘technically’ majority vote in the club. It is suggested that Christian Purslow is using his investment background to try and orchestrate such a deal.
As we reported earlier this year, Liverpool’s projection to keep their debt under control was heavily reliant on consistent qualification in the Champions League for the next 5-6 seasons. This year the reds have banked around £14M in transfer profit, and the banks were so concerned this summer that they demanded the owners clear at least £60M of the loan before they allowed a new loan to negotiated.
Liverpool are carrying debt at just under £300M – a loan which was used to effectively buy the club and clear off previous debts.
If these rumours are correct – would the best course of action not be to offer Liverpool fans, or a Liverpool fans’ consortium the opportunity to invest in the club?