Kop meltdown: Transfer shock for manager Rafa Benitez as Liverpool cash crisis
deepens
by JOHN EDWARDS
Last updated at 11:46 PM on 04th June 2009
Liverpool were facing meltdown last night after their dire financial crisis was
exposed. Only 48 hours after losing out to Manchester City on the signing of
Gareth Barry, and with Glen Johnson - another long-term target - expected to
join Chelsea, details of their fragile state became clear. Owners
Tom Hicks and George Gillett were warned that there is 'significant
doubt on the group's and parent company's ability to continue as a
going concern' because of the club's debts.Though Liverpool's most recent
accounts showed a profit of
£10.2million, their parent company lost £42.6m, mainly due to interest
payments of £36.5m.
That will panic the club's supporters, who are seeing their rivals
move quickly in the transfer market - and may even unsettle their star
players, just as the club seemed to be gearing up to challenge
champions Manchester United.
Hicks and Gillett face a July 24 deadline to refinance their £350m
debt and though they remain optimistic about meeting it, there was a
warning from the accountants that could have repercussions on Rafa
Benitez's spending plans.
Benitez has already admitted he may have to sell to top up a limited
budget, and there were more concerns for the Liverpool manager after
accountants KPMG LLP delivered a sombre assessment.
Referring to the losses incurred by parent company Kop Football
(Holdings) Ltd, they said: 'The directors have initiated negotiations
to secure the replacement finance required by the group, and they are
ongoing.
'These conditions indicate the existence of a material uncertainty
which may cast significant doubt on the group's and parent company's
ability to continue as a going concern.'
Worryingly for Benitez, the figures underline how revenue from the
Champions League and Barclays Premier League is being swallowed up to
service the parent company's loans.
The manager was hoping for substantial backing in the transfer
market but has already seen Barry sign for Manchester City and is
beginning to lose hope over his other two main targets, Portsmouth's Johnson
and David Silva of Valencia.
His overall budget is believed to be as little as £15m, plus
anything generated from sales, and there are questions over whether he
can afford Johnson or Silva, let alone both.
Chelsea's interest in Portsmouth right back Johnson can only inflate
his asking price, while Valencia's reluctance to accept a £15m bid for
Silva continues to block the Spain winger's route to Anfield.
Benitez has been forced to consider cheaper alternatives, such as Middlesbrough
striker Tuncay and Portsmouth centre back Sylvain Distin, but there is
at least a ray of hope for him in the form of possible new investors.
Sportsmail
understands three representatives of the India-based GMR infrastructure
company, who hold the franchise for the Delhi Daredevils cricket team
in the Indian Premier League, have met intermediaries acting on behalf
of Liverpool's American owners to discuss a takeover.
Should Hicks and Gillett finally relinquish control, Benitez could
at least count on greater transfer funding but may still struggle to
convince Xabi Alonso to remain at Anfield after a £20m bid from Real
Madrid and interest from Manchester City.
Alonso almost joined Juventus last summer and has now reluctantly
concluded he may have to end a five-year stay at Liverpool after
sensing Benitez is prepared to sacrifice him to raise funds.
silaken dicerna sendiri...
,,(o_o),,
[Non-text portions of this message have been removed]
