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ECHO Comment: "Fears of Witch-hunt Against Liverpool FC" part 3

catcherintherye said:
Yes I heard that too. Well the two things I'll add to that. This nonsense about £140m, the Barca figure was around £100 and the rest add ons that won't be achieved. Anyone buying the debt would not touch the add ons part, and would give them them money on the "guaranteed" £100m. That is some protection on Barca looking to renegotiate.

Generally you'd do quite well to get 80p in the pond for this. Given Barca's credit rating, and that football is anything but a title A rated area, they would be doing very well to get near that. I suspect in a good case scenario they get 75p in the pound for that. Either way you are talking about £75 million quid.

Two further points. The idea then they used Coutinho to subsidise Van Dijk and Alisson are nonsense (as are the ridiculous net spend tables). They would have barely been able to afford 1 of them for the price of Coutinho. When you factor in the extortionate agent fees they pay (the largest in football, but quell surprise they never get counted on the net spend figures) then both Alisson and Van Dijk would both cost more than what they got for Coutinho if the above is true.

The other issue I'd raise, is why they are using such a facility? I mean is this a standard arrangement or just for a big fee like Coutinho? I mean it's often the case that in such an arrangement that the company that have sold the debt on would pay the value up front. Given the splurge that was made on Fabinho, Keita, Alisson & VVD (over £250m + whatever agents fees were involved) plus the other bits and bobs they did without any other major sales (the fees for Solanke and the goalkeeper will again be heavily incentivised and far lower than reported) it would make sense that they got as much of the Coutinho money up front as possible, and used that to probably pay for the 1st year on all of the above.

The obvious question then is how do you pay for years 2/3/4 of these players? No money was spent last year (no surprise there) and I think they wanted to sell Mane for a ridiculous price (quoting £150m). People just laughed them off, and I doubt Real Madrid wanted to pay half that. he's a year older now (28) and the market is collapsing. Conservatively you can probably whip 40% off what Madrid wanted to pay.

I mean it may not be that, but that makes the most sense. It may be standard practice that traders value liquidity over a guarantee of money down the line as standard practice (which would also fit). It may be they foresaw some of the challenges re Barcelona and just wanted to eliminate a lot of the milestones not being hit. However most likely appears they wanted/needed the money up front to fund the spending blitz.

The really amusing part of this is that most Liverpool fans seems to think such arrangements are a sign of positive health. The opposite is true.
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I used to work with a guy back in the mid 2000s who's wife was an accountant at the pit. She had a breakdown. They've always been a bit of a basket case behind the scenes trying to keep all the plates spinning.
 
Westend Blue said:
I'd be very worried if I supported a club with American owners they are in for tough times. The source of our wealth is Chinese/Russian mostly resource and needed infrastructure the USM branches should be fine and could even prosper. Who knows who else Moshiri knows and you have to be a damned good accountant to be a billionaire so he would be very savvy to many different alternate financial pathways.

The utter myth that we are in trouble will be exposed soon. New stadium and once we bring our wage bill to appropriate levels and get continued commercial growth they will be in for a shock
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Yes I could go on for some time about the dangers of American owners. I mean they've already experienced it once with H & G so it does amaze me they've learnt absolutely nothing about the wider context that caused such a circumstance to occur. I will tell you this though, the little bit of money H & G pulled out will seem like nothing if American owners start to get damaged and exposed on the other side of the pond.

There is a reason why the Americans have bought football clubs. Yes to increase values for sure. They are using to borrow against as well. But also in difficult times they are useful avenues to pull money out of in moments of difficulty. They are going into an acute crisis in America, 22m unemployed in a month (far far worse than even the Great Depression) with a geriatric idiot in charge, making more reckless decisions to try and win an election. I really wouldn't want to be a trading company, in something as peripheral as sport over there currently.

As for us, we have an owner who is clearly not trying to make money (in the orthodox American way). Someone who has the pockets, connections and long term vision to back us through such a crisis. They don't need to worry about us, they need to worry about themselves.

3 clubs, Arsenal, Manchester United and Liverpool are really exposed. American owners who will transfer any contagion they receive onto their other assets (this will happen inevitably). Massive sponsorships that will all come under enormous pressure. Huge wage bills that they are committed to have to pay. And a huge drop in transfer prices stopping their little schemes of selling young players on for more money.

In all honesty, the H & G scenario could be a best case scenario for them. It's essential the trajectory Arsenal were on before this crash. A 3-4 year period of that sort of trajectory could well be the best case scenario for them.

I'm whispering it, but it could become very very amusing over the coming years if things don't recover quiet quickly. But don't worry, he idiots will tell you they are buying Mbappe from their heavily incentivised sponsorship deal with Nike, the milestones of which they will just not hit. Clowns.
 



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