Tuesday, October 19, 2021

Liverpool FC to appeal against ruling

By Lucy Temby

BBC News

Liverpool fans have brought their show to Paris to protest against the club’s debt Liverpool have agreed to an extraordinary Court of Arbitration for Sport (Cas) hearing as its ownership saga drags on. The club wanted the Court to approve their funding in order to sign new players and lift transfer restrictions. Liverpool said that the creditors debt resolution had been reached before the hearing was set. By law creditors can only be paid on time by court rulings or by additional financing from the club. As a result, the Club requested that a Court hearing in Lausanne takes place on 18 September to confirm the debt resolution deal and meet other issues. Please turn on JavaScript. Media requires JavaScript to play. This is not the first time the Club has been involved in a financial difficulty. Despite being an English Premier League-leading outfit, Liverpool are worth just £300m – ranking them alongside Leeds and Birmingham. Liverpool FC plc is estimated to be worth around £240m – which is thought to be slightly more than the debt owed to the club. It was that debt and the club’s failure to pay bills on time that led to a winding-up order being served on the club in the UK. The Court ordered Liverpool to pay almost £5m in back taxes and taxes on central city loans. The European Court of Justice backed the decision of the courts and Liverpool won an appeal in a final attempt to reduce the size of the amount they had to pay in debts. In the meantime, the club’s credit rating is in danger of being downgraded and its share price has been hit to the tune of more than 50%. Now, Liverpool say they have a deal that will see the British Government give Liverpool an £81m loan which will then be paid off in part. Liverpool’s American owners, Fenway Sports Group, said the club’s debt would then be shared equally by all club creditors and eventually be fully paid by Liverpool. Those latest debts have been understood to cover debts which have accrued since the takeover in October 2008. The club has recently moved on to another part of their cashflow problems as millions in planned revenue will not be enough to fund a new deal to update Anfield Stadium. Liverpool have also been linked with a takeover bid from Malcolm Glazer, whose ownership of Manchester United has come under pressure in recent years.

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