Liverpool boss says club is not going bust

Posted by Lucy Walters on 23rd Sep 10

Managing director of Liverpool FC, Christian Purslow, has assured fans that the club is not going bust. However, co-owners George Gillet and Tom Hicks owe the royal Bank of Scotland £237 million. The renegotiation or repayment of the loan is due in October. On the clubs’ website, Mr Purslow answered questions from worried fans over Liverpool’s future.

The club is in a very healthy financial position, is solvent and has at least enough money to see it safely through to the end of next season, Purslow wrote. He added that the club’s finances had been heavily scrutinised by the Premier League and that UeFa had awarded Liverpool its licence because it was pleased with what it saw.

Mr Purslow was keen to stress that the club was operating at record profits and that the only problem at the moment was that too much of that profit was going into debt repayment. He added that this problem would be solved when Liverpool found a buyer.

Mr Purslow confirmed that the club was in discussions with a small number of interested parties. He said that the parties were currently in the process of due diligence and hoped that one would eventually come forward with an offer favourable to the club.

Liverpool’s board of directors has said it will block any moves to use the club’s assets to refinance debts. Mr Hicks is currently in talks with the Blackstone investment group about restructuring his loans and the possibility of raising the cash to buy out fellow owner George Gillet.