RBS to Repo Liverpool ?

[Dedworth]

http://www.newsoftheworld.co.uk/sport/football/942020/ROYAL-BANK-OF-SCOUSE.html

This was in the Sunday Times and was mentioned on Talk *****. If Liverpool fail to repay the loans (RBS loaned them the cash) next month the bank can repo them and auction them off to the highest bidder.

[triple5]

Might finally get some new owners then :xxgrinning--00xx3::D

[Dedworth]

Might finally get some new owners then :xxgrinning--00xx3::D

They've got some neck having Std Chartered Bank as sponsers - you'd have thought Nat West would have had something to say about that :D

[KeithD]

Banks will never pull the plug on Premiership loans, they just renegotiate them. Why? They'd be shooting themselves in the foot with negative advertising to Millions of people around the world, and definitely in the present climate Liverpool have RBS by the balls.

[Dedworth]

and definitely in the present climate Liverpool have RBS by the balls.

I wouldn't "bank " on it I reckon the proverbial will hit the fan shortly. Corporations pull the plug on negative advertising whats different with banks ?? :confused: - Tiger Woods has lost untold sponsorship, Rooney will be next.

[KeithD]

But the banks want the money back, and by renegotiating they get more, by auction they lose money and RBS are no longer in a position for urgent money, plus the overall value of Liverpool is more than enough equity to secure the debt.

[Dedworth]

But the banks want the money back, and by renegotiating they get more, by auction they lose money and RBS are no longer in a position for urgent money, plus the overall value of Liverpool is more than enough equity to secure the debt.

I'm no financial expert so I bow to your greater knowledge, but I think along the following lines

1) Banks do not continually renegotiate loans there comes a point where they want their money back especially in the case where the debtor is overstretched or inept at business.

2) Who says RBS don't urgently need money - how about if the Govt demanded urgent paybacks on the public bail out money ?

3) What is the overall value of Liverpool FC ?certainly not the £600/£800 million GI Joe Gillette thinks. They owe RBS £237 million

4) If you owe the bank £200k on your house, the one next door has just sold for £300k. The fact that you've lashed out £20k on a kitchen, £15k on a bathroom and £5k to the Diddys for a paved drive is neither here nor there. When HSBC or whoever repo it they will accept the highest offer over £200k

Like I said I'm no financial expert :D

[somebody]

Plenty of big Football teams over the years where they been far to in the red for a normal company or person to survive. Remember when Tottenham nearly went under over ten million or so back in 1990 or so. HSBC or at least the people connected said there was no chance they would have dared pull the trigger as the amount of money pulled out of accounts and negative publicity would have caused. Even Chelsea when broke before Roman had its big debts but apart from strong pressure there was no way many UK based companies would have dared pulled the trigger on Ken Bates even Leeds and pompey all saved when any typical company would be long gone.

But as you say they will be strong pressure to do things RBS way and any half decent bid will be accepted. You do wonder if one day a Football club will push a major company to far...

[Dedworth]

Plenty of big Football teams over the years where they been far to in the red for a normal company or person to survive. Remember when Tottenham nearly went under over ten million or so back in 1990 or so. HSBC or at least the people connected said there was no chance they would have dared pull the trigger as the amount of money pulled out of accounts and negative publicity would have caused. Even Chelsea when broke before Roman had its big debts but apart from strong pressure there was no way many UK based companies would have dared pulled the trigger on Ken Bates even Leeds and pompey all saved when any typical company would be long gone.

But as you say they will be strong pressure to do things RBS way and any half decent bid will be accepted. You do wonder if one day a Football club will push a major company to far...

I guess we've moved on a few hundred £ millions certainly since 1990 or so with Totnum and possibly Roman in 2003. The other peoples money these Yanks blew on United and Liverpool was obscene and I think soon their houses of card will collapse and the Chickens will come home to roost. RBS like all bankers will want to see that their money is OK - particularly after all the dodgy loans drove them to the wall.

[RickyR]

The situation may not be so simple, and RBS may be left with no option if they feel the management aren't making the decisions they want and finding a buyer.

[triple5]

I'd be more concerned if we owed it to some dodgy Russian than a bank :D

http://www.guardian.co.uk/football/2010/may/19/roman-abramovich-chelsea-loan-debt

[Dedworth]

October 6th is D Day for Liverpool

RBS Attempt To Force Liverpool Owners To Sell Up
By Chris Wright on September 10th, 2010

RBS Attempt To Force Liverpool Owners To Sell Up

The Royal Bank of Scotland – who are Liverpool owners Tom Hicks and George Gillett‘s current lenders – have put an October 6th deadline in place, by which time they expect the American pair to fully repay outstanding loans that totaled somewhere around the £285 million mark at the last count.

The deadline means that Hicks and Gillett will either be forced into finally selling their ‘soccer franchise’ off to the highest bidder, or somehow pluck a means of settling their debts with the bank out of the ether.

At the moment, no party has been willing to come close to matching their inflated asking price (alleged to be somewhere between £600-£800 million, for a club that was purchased for a reported £219 million just three short years ago) as the mark-up doesn’t justify the ‘product’.

So, due to their reluctance to sell Liverpool for a cut price, Hicks and Gillett will now have to refinance their debt once again in order to ensure that they hold on to their business until they are able to flog it at a price that resembles their valuation.

The pair are becoming increasingly desperate to sell their stakes in Liverpool amidst a wave of ill-feeling but, being the rootin’ tootin’ businessmen they are, they want to move the club on for a considerable profit – and therein lies a sure-fire, one-way route to ‘sh*t or bust’.


Read more: http://soccerlens.com/rbs-attempt-to-force-liverpool-owners-to-sell-up/54422/#ixzz0z8O9LXoQ

[jimeve]

Who owns RBS, WE DO.:laugher:

[Dedworth]

Who owns RBS, WE DO.:laugher:

Shirt sponsor Std Chartered Bank replaced by UK Plc - savage Govt Cuts reduce Stevie Mee's bloated pay packet to the national average :icon_lol:

[Dedworth]

More turmoil at Liverpool - GI Joe Gillett is going down the financial pan

http://uk.eurosport.yahoo.com/17092010/58/premier-league-paper-round-gillett-red.html

It might have been a great night for Liverpool on the pitch, but behind the scenes at Anfield the future of the club was thrown into confusion as one of the co-owners faces financial meltdown.

The Daily Mirror reports that George Gillett's financial problems in his native USA have reached such a state that he will be forced to default on a £75 million loan.

The problem for Liverpool is that Gillett had secured the loan against his 50 per cent stake in the club; if he can't pay it back, the bank will seize his chunk and sell it to whoever they can in order to recoup their money. And that will leave co-owner Tom Hicks in prime position to buy the rest of the club - a move which would dismay the Liverpool fans and the Anfield board alike.

[triple5]

How did we ever let these clowns in in the first place :Erm::NoNo:

[Dedworth]

How did we ever let these clowns in in the first place :Erm::NoNo:

Same as the Mancs previous owner was greedy for the Yankee $

[KeithD]

As with all big business they leverage money.... fine when the good times are rolling.... but the bottom fell out the financial markets a couple of years ago if you didn't notice ... check your pension fund ;)