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Morgan sounds reds debt warning - Steve morgan alleges debts exceed £70m
Posted:
Fri Feb 24, 2006 5:54 amby azriahmad
I came across this in the BBC website.
Morgan sounds Reds debt warning
Liverpool shareholder Steve Morgan has reiterated his calls for the club to find new investment after alleging the Reds are more than £70m in debt.
Morgan, who has previously tried to buy the club, said the official figure of £17m hid other financial problems.
"When you take creditors and worsening financial conditions into account, the debt, I believe, is nearer to £73m," said Morgan at the club's AGM.
"It's imperative to get extra financial investment. We're on a dangerous line."
The figures in the club's financial report show the club made a gross profit of £7.53m on the year, which included their Champions League win, compared to the previous year's loss of £18.22m.
But in the same period, the net debt rose from £15.38m to £17.14m.
"New investment is needed sooner rather than later," added Morgan, the club's third biggest shareholder.
"Manchester United still make double what we do on match days.
"All I can say to the board is that we've been waiting for over two-and-a-half years and we need the investment sorted out."
Director Keith Clayton agreed that the club needed more funds but said the plans for a new stadium were crucial for the future of the club.
"It's still our view that we need further investment to sustain success on the field and the new stadium," said Clayton.
"We are at a critical point of our history and we need to get this right.
"We accept that the estimate of £160m for the new stadium is not far away from the figure but we do have contingency plans at Anfield."
Other figures in Liverpool's annual report showed their wage bill had been reduced by £2m to £64m, representing 53% of the club's turnover, while turnover had risen by 32% to £121.05m.
Liverpool have been linked to the American-based Kraft family and Thailand Prime Minister Thaksin Shiniwatra.
I have not seen Liverpool's annual report and don't have access. Anyone has any ideas on how to get hold of one? Only then can some light be shed on this allegation.
Liverpool has net debts of £17.14 million. Presumably this is debts owing to financial institutions. If Morgan claims that Liverpool have "total debts of £73 million" if all creditors are included, this means that Liverpool has some £55.9 million creditors of various forms - transfer payments committed but to be paid in instalments etc. I can't really fathom that Liverpool has so much debts with the bulk in the form of other creditors in addition to bank loans of some £17 million, because we don't spend that much in the transfer matket.
Posted:
Fri Feb 24, 2006 6:21 amby The_Rock
Guess...have to wait for the AGM to shed light on this.....
Posted:
Fri Feb 24, 2006 6:24 amby babu
there was a thread posted by ciggy a few weeks ago, detailing the financial status of the club. It certainly didn't mention any debt like this. Maybe ciggy can post a link to it. 
Posted:
Fri Feb 24, 2006 6:34 amby wee_boi888
Im studyin commerce at uni, with accounting one of my subjects, and there is a BIG difference between net debt and total debt.
If our net debt is bout 17mil, but our total is closer to 73mil, it is likely we have funds of 56mil owing to us in some way or another. Then again both sides could be misleading the public - the board not wanting to worry fans, and for Morgan to gain supporters.
Either way I don't think we should be overly worried, but Morgan is right that Investment in our club is a priority; especially if the new stadium costs keep increasing.
Posted:
Fri Feb 24, 2006 12:29 pmby RUSHIE#9
I have about as much Business sense as Mourinho has common sense but just reading between the lines of this statement from Morgan i get the feeling that he may be exaggerating the figures for his own personal gain; it is no secret that he wants onto the board at the very least and because Moores won't accept him he'll use any little bit of ammo to undermine David Moores. I imagine that the majority of Premier league clubs will have money that is either owed to them or owed by them to other institutions paid over installments so on the face of it the net debt is the figure that shows the most accurate picture of the clubs financial health.
Posted:
Fri Feb 24, 2006 12:55 pmby mighty mo
how is someone who is not on the board privy to these figures,the guy is troublemaker doom merchant
Posted:
Fri Feb 24, 2006 1:51 pmby 7_Kewell
i'm getting sick of Morgan and his bitterness. To me, it looks like the guy is trying to stir up trouble. It's a bit strange that he's saying we're "on the brink" when he's also trying to buy the club??? So in basic terms...he's saying "let me buy the club or you're doomed" 
He's not telling us the whole story and the overal debt could include money borrowed for the new ground (60 million) or, as said ealier, money we're owed.
Either way, Morgan is trying to stir trouble and it's bang out of order 
Posted:
Fri Feb 24, 2006 1:55 pmby stmichael
Morgan was just making a fool of himself by coming out with the £70m+ debt line. If debt was judged by the way he calculated it then the likes of Tesco would be in debt to the tune of a few billion quid. But they aren't.
He quite simply doesn't know how a football clubs accounts work and that alone is one reason why he shouldn't be allowed anywhere near the board.
Posted:
Fri Feb 24, 2006 2:29 pmby Big Niall
how do manu make double what we do on match day? Old Trafford has ROUGHLY one and a half times the capacity of Anfield.
Posted:
Fri Feb 24, 2006 2:35 pmby Rafa D
They charge foreigners anything they want lol
Posted:
Fri Feb 24, 2006 5:27 pmby 115-1073096938
IF we were in 70million pounds worth of dept, our squad alone is worth more than that, let alone the management. We have valuable assests.
Morgan's a cancer to this club, he'd ruin us. Doug Ellis mk II.
Being in dept is 
, i don't believe for one second that 95% or people aren't in dept in some form or another. IE mortgage, car loan, car insurrance etc.
If we're in that sort of dept, i'd bet anything its managable.
Posted:
Fri Feb 24, 2006 5:28 pmby dawson99
its like if i spend 2k on my credit card but have 10k in the bank they could still say im 2k in debt.
morgan just makes me sleepy now
Posted:
Fri Feb 24, 2006 5:39 pmby redmikey
morgan should keep his gob closed, as a lfc fan which he states he is all the time why would he annouce something that could upset the balance of the club, for his own gain nothing more nothing less
face it mate you haven't got the cash so enjoy being on the board and shut up.
out of all the options i would choose the kraft family, they have the money and the sporting knowledge to take us on to the next level and competeing with chelski manu and real etc etc
Posted:
Fri Feb 24, 2006 5:41 pmby 48-1119859832
Is this the man who wanted to ground share with Everton? Therefore helping Liverpool football club lose it's identity. 
Posted:
Fri Feb 24, 2006 11:10 pmby 65-1140560321
I wouldnt read too much into what the financial records say, as they can be twisted to show any picture of the clubs finances from whatever viewpoint you like. it can all be fiddled.
ie; overpricing assets, different stock valuations and the like.
the club can twist the financial records anyway they like.
they may have made a profit, but there may be other contingencies untold. they can also spend money they havent got, on the basis of "potentially" earning it. ie; prem prize money, doing well in the Cl and increased shirt sales.
trust me i'm a finance man.
i bet they have well spent the champions league money.
anytime you want a business lesson let me know.
hee hee.
-----------------------------------------------------------
Q. what do you call a man who's standing in a hole he's dug with a spade?
A. Doug!
Q. What do you call man standing in an even smaller hole that he's dug?
A. Dougless.
Hee hee hee hee