By David Gold
May 6 – Liverpool’s managing director Ian Ayre insists that the club is “very optimistic” about its future despite losses of £20 million ($33 million) in the club’s accounts up to July 31 2010, when previous owners Tom Hicks and George Gillett were still in charge of the Premier League side.
The Americans were ousted from their position at the start of this season as American billionaire John Henry and his New England Sports Ventures company bought the Anfield club.
Turnover for the period increased to £184.9 million ($302.6 million), but debt rose to £123.4 million ($201.9 million) and £17.6 million ($28.8 million) was paid in interest during that period.
“They are accounts for last season and obviously at that time it was a very different period and a different situation for Liverpool Football Club,” explained Ayre.
“I think we have all moved on since then.
“They very much represent a footnote in that era of the club’s history.”
More than £200 million ($327 million) of the club’s debt has been paid off by the new owners, whilst the accounts do not reveal any of the income from the club’s four year sponsorship deal with Standard Chartered.
The club also sold Spanish striker Fernando Torres in January to Chelsea for £50 million ($82 million), and spent the money from that sale on Uruguayan forward Luis Suarez and Andy Carroll as they rebuild under caretaker manager Kenny Dalglish.
“We’ve paid down a significant amount of what was acquisition debt from the previous owners and the club finds itself in a much better position as a result of that,” Ayre added.
“So we have less interest to pay – I think in the accounts that were issued, we were up to a level of paying about £17 million ($29 million) per year of interest payments.
“That’s gone away largely now, we have a very minimal debt and that allows us to reinvest that money into the team and the squad, which is what everybody connected with the club wants to see.
“I think what everybody who is connected with, starts to be connected with, or becomes connected with this football club finds is that Liverpool is such an institution and such an important football club that has been around for many years and has foundations built on success.”
Contact the writer of this story at zib.l1735858556labto1735858556ofdlr1735858556owedi1735858556sni@d1735858556log.d1735858556ivad1735858556
Related stories
April 2011: Liverpool nearly went out of business claims top UEFA official
March 2011: Exclusive – Liverpool are one of “top three or four clubs in the world” players want to sign for
March 2011: Loopholes in UEFA fair play rules must be “closed off” warn Liverpool
February 2011: Americans launch bid for $1 billion damages
November 2010: Mihir Bose – Liverpool story still has a long way to run