Liverpool Deny Advance Payment Rumours, Insist Club Is Healthy

Martin Broughton: Brought in to facilitate Liverpool sale of club in spring

Liverpool have refuted claims that they have sought advance funding from the Premier League from TV revenues and sponsorship payments as their financial situation is starting to alarm fiscal experts.
A fire sale of players in the January transfer window cannot be ruled out, even though Liverpool have already, according to ESPNsoccernet sources, given assurances to the Premier League that they can fulfill all their fixtures for this season. A similar undertaking has been given to UEFA about the club's participation in the Europa League.
ESPNsoccernet broke the story a week ago that there were fears within the club that Tom Hicks and George Gillett were considering new refinancing arrangements, having tried and failed in June.
With Gillett's finances in a parlous state, and with the possibility that he might default on other loans and ultimately lose his 50% stake in Liverpool, his partner Hicks is now attempting to refinance alone and gain total control - sending alarm bells through Anfield.
Sources have told ESPNsoccernet that there are strong rumours that Hicks has launched a new bid to retain control by looking to secure another refinancing deal as Gillett attempts to avoid defaulting on a $75 million loan.
The board is fiercely opposed to any attempts at refinancing by the Americans, having successfully warded off such a threat in June. Liverpool fear the worst case scenario would be further loans and debts and higher interest repayments.
Chairman Martin Broughton, managing director Christian Purslow and commercial director Ian Ayre have a 3-2 majority within the boardroom and would block any refinancing if they can, although the final option to the American owners is to mount a legal challenge.
With such a complexity of problems, the Royal Bank of Scotland are reluctant to take control of the club on October 6, the deadline which the bank set, as has been widely expected.
Without a creditable buyer in sight, even though the value of the club is plummeting, and without any means to repay £237 million to RBS, the options are diminishing. Administration is an increasing possibility, though that remains the final option.
Liverpool have informed ESPNsoccernet that there is no question of a cash flow problem at present and that the players wages are being paid and will continue to be paid. At present £40 million annual interest repayments come directly from club profits but the debts are not loaded against the stadium and players. That could change if there is a new refinancing package.
When Hicks and Gillett tried to find a £290 million 'mortgage' using the stadium and players as assets, the board threw it out and took legal advice to ensure they were within their rights to do so.
With the October 6 deadline rapidly drawing so close, Hicks and Gillett stand to lose their stranglehold on Liverpool, with RBS handing it over to their Recovery Unit to sell as a distressed asset. Even then there is no guarantee of a buyer, as any new owner has to invest £400 million in a new stadium.
ESPNsoccernet approached Liverpool to ask: "Can the club still afford the players' huge monthly wage bill, considering the club are now in the red?"
A club spokesman said: "Liverpool FC has prudent working capital facilities that allow the Club to make proper provision for outgoings as and when they arise. These working capital facilities are totally satisfactory to both the Premier League and UEFA."