Scouser Supporters the Next Sub-prime Loan Victims?
Fernando Torres has titillated the Anfield crowd with thirty goals this season, but–due to recent revelations about the club’s finances–banks may cut his Merseyside career short.
Liverpool borrowed £31.5m last summer to purchase Torres and winger Ryan Babel, unusual since most Premier League clubs use TV revenue cash to cover transfers. The club took out a letter of credit, which they are obligated to repay in 18 months. If the club cannot repay or refinance the loan, banks could force the Reds to sell both Torres and Babel a year from now.
The club already pay £30m per year on interest payments for the £350m loan granted to Hicks and Gillett to purchase the club. An additional payment would surely preclude the extravagant spending required for a serious title challenge.
The announcement arrives amidst George and Tom having another spat regarding the perilous state of their elaborate bubble scam gone awry.
Despite Champions’ League optimism, the club’s future remains wedged between the cheeks of financial instability under debt ridden Americans and of potentially shady foreign investment from Dubai Investments Co. Either way the outcome still stinks.