Liverpool Football Club has revealed that its financial troubles are not getting any better. In fact, the challenge is getting much worse as the European elite team has reached an unprecedented £87 million of debt, an impressive increase from £22 million in 2011, a sobering result from the economically harsh landscape in Anfield.
The current owners of the team, Fenway Sports Group, tried to offer various explanations as to why this situation has come about. The arguments surround the Champions League but concerns raised by some observers point to the figures covering the period between August 2011 to early 2012 where Ian Ayre, the managing director of the team, oversaw the biggest debt increase thanks to payment transfers. Former employees were paid over £30 million a year such as former manager Kenny Dalglish, leading to the impact we can now see.
In a recent press event, the team has tried to reassure fans and supporters that this is just a temporary setback and that the next European season including the Champions League would help bring the finances back under control. But many are still unsure where the enormous amount of necessary funds will be coming from.
Some of the reveals in these figures include a £120 million package that was used to refinance the team from the Royal Bank of Scotland, Barclays and Bank of America. These types of financial moves do not help to bring more confidence in the management of the Liverpool club, and could make it hard for the manager to gain back the fans’ respect.