Liverpool - Debt
Liverpool's debt is shown below.
This is one of the areas of the finances that has changed with the change of ownership. Up to 2007, so pre-Gillet and Hicks, Liverpool Football Club did have debts but they were relatively small. Since the new ownership arrived this has changed out of all recognition. The white lies show the debts of Liverpool Football Club, and the gold areas show the debts of "Kop Holdings" the company set up by Gillet and Hicks to buy the football club.
It is clear that Kop Holdings has some big problems, with borrowings of roughly £300m in July 2008. The loans have an interest rate of 3.5% over the interest used between banks of roughly 0.6% rate, so at the moment this would be 4.1%. If the owners cannot pay off any of this loan, and only pay the interest off it would still cost roughly £12m a year.
It is difficult to see any way that the £300m worth of loans can be paid off in the near future and it will be a burden that will slow the club down for many years to come. This is discussed further in the "interest payments" section.