RBS to Repo Liverpool ?

[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

[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.