by azriahmad » Sun Feb 26, 2006 1:28 am
Morgan is not on the board of directors of the club but he is a shareholder. Hence, by legislation almost anywhere in the modern world, he would be called to the AGM via a notice which is included in the annual report. Hence, he has access to the already published annual report but only when it's published and a notice of AGM is issued. He is not privy to the day-to-day running information. This is what he is trying to get into and so far is unsuccessful.
As to the "total debt" comment, I believe he is saying that Liverpool FC's total liabilities (banks, creditors and total payables) total near £73 million while the total assets (book value of players, receivables, debtors) total somewhere near £55.9 million. With the book amount of liabilities exceeding the book amount of assets, Liverpool is said to be "in a net debt position of £17.14 million", this figure is the difference of the respective book amounts between assets and liabilities.
However, Liverpool FC is very much a going concern, which has registered a healthy increase in its turnover thanks to its CL exploits and with us still in the knock-out stage this year, our turnover, at worst if we do not progress much further, will still be very respectable although some 10% or 15% less than last year. Because of this, Liverpool's creditors will generelly still give indulgence and wait for the scheduled payments instead of demanding full payment immediately. If we continue to participate in the CL and keep progressing to the QFs or SFs every season in the future, we will register a healthy turnover and will be able to overturn this "net debt" position within 5 years. The CL is that lucrative and manure's financial strength has been largely built on that.
As a businessman, he knows this concept of credit but statement on the debts exceeding £70 million is purely to jolt the more emotional supporters into joining him and his crusade to force Moores to give in to his plans.
Another factor is that the assets are at "book value". I bet that Stevie G is accounted for at his contract value since he cost us next to nothing and if his market value were to be stated, the "net debts" will be wiped out.