One of the things which Gillet/Hicks were quick to point out when they bought Liverpool FC is that it wasn't going to be anything like the Glazier's takeover of Manchester United. Instead of heaping debt on the club they were buying the club without any debt (although they did borrow £285 million). Now it's transpired that they intend to borrow £500 million (the debt will be on LFC this time) to refinance the original loan and building of the new liverpool stadium. Given that its 16 times LFC's operating profits (2007), I think it's inevitable there'll be a marked increase in ticket prices and probably stadium naming rights being sold off (I might rename this blog in a few years time to "My Old Anfield").
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2 comments:
It's all a bit sinister, isn't it? I wonder at times whether the various Americans know what manner of business model they're buying into. Sport is not like regular business where a rising tide lifts all boats. Someone has got to come first and, by extension, someone has got to be last. Leeds mortgaged their future on being perpetually in the top four, and look where they are now.
Then I remember that the Glazers - and, assuming what you say is correct, Gillett and Hicks - have moved all the debt into a seperate company which means, if it all goes belly up, their own personal fortunes are ringfenced. And I realise they know EXACTLY what they're doing :-(
I don't think things will go belly up for LFC or their Kop company, I believe LFC will be a success (both on and off the pitch). It's just a case of rising ticket prices (lord knows by how much) and the naming rights for the stadium being sold off to the highest bidder. Anfield has emotive strings attached for most LFC supporters, but then again so did Highbury for the Arsenal. Change is inevitable, thats life, normally I'm all for change but certain things I don't want to change too much...
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