Posting this in here (seems the most sensible place?) as don't think the main board, would result in a better discussion. The accounts have been filed at company house (which means it wont be long before people get hold of them I am sure), and it seems the Echo have.
The Echo has picked out some headline figures, but on my limited financial knowledge, these often don't tell the full story. I am sure many more qualified than me, will be able to explain (once they have full access to the accounts), exactly what was going on, and how we escaped things from getting even worse.
EDIT: Now a statement on our official site too -
http://www.liverpoolfc.tv/news/latest-news/future-bright-despite-lossesManaging Director Ian Ayre today reassured Liverpool supporters the Reds can look forward to a bright future, despite the fact that the Club will later today report a loss of £20m for the year ending July 2010.
The end of year accounts, which will be published at Companies House later today and cover the period August 2009 to July 2010 under the ownership of Tom Hicks and George Gillett, show revenues rising to £184m, but net debt increasing to £123m and incurring interest payments of £17m.
However, the purchase of the Club by Fenway Sports Group in October 2010, three months after the period these accounts cover, has heralded the start of a bright new era at Anfield, with considerable positive change already evident both on and off the pitch.
"As much as we are all aware of the difficult circumstances surrounding these accounts and that period in the Club's history, everyone in the world can now see just how much has since been achieved," said Ayre.
"Since the end of the last financial year, Fenway Sports Group has paid off £200m of acquisition debt from the previous owners, dramatically reducing interest payments as a result and meaning we are able to invest more revenue in the team rather than servicing debt. We have also enjoyed significant commercial growth since these accounts were finalised, including our shirt sponsorship deal with Standard Chartered, which was the largest partnership contract in the Club's history.
"On and off the pitch since the end of the last financial year, the picture is an improving one as we focus on growing profitability and strengthening the First, Reserve and Academy operations. We had an extremely successful January transfer window which saw the Ownership and management teams working closely to bring in some high quality players.
"We have also focussed on reducing the average age of our squad and are delighted with the progress of a number of our younger players who have come through our revamped Academy operation.
"The Club is now in an excellent position to move forward and all of us can approach the future with optimism. "
http://www.liverpoolecho.co.uk/liverpool-fc/liverpool-fc-news/2011/05/05/liverpool-fc-s-20million-losses-the-final-cost-of-tom-hicks-and-george-gillett-s-reign-revealed-in-accounts-100252-28638417/LIVERPOOL FC turned in a pre tax loss of £20m last year, the club’s latest set of accounts reveal today.
The Anfield accounts, which cover the period August 2009 to July 2010 and relate entirely to the last full financial year of ownership under ousted Americans Tom Hicks and George Gillett, also saw interest payments rising by nearly £5m annually.
They went up from almost £13m in 2009 to £17.7m in 2010.
The accounts, obtained exclusively by the ECHO, also reveal that the cost of parting company last summer with ex manager Rafael Benitez and his immediate staff approached £8m.
Liverpool’s accounts, lodged with Companies House last week and due to be published soon, entirely pre-date the buy-out of the club by New England Sports Ventures, since renamed the Fenway Sports Group.
That takeover, which followed a dramatic series of London High Court hearings in October last year, saw the group led by Boston Red Sox baseball team owners John Henry and Tom Werner reduce annual interest payments to around £3m a year.
FSG have repaid £200m worth of acquisition debt which Hicks and Gillett had saddled the Reds with – sparking outrage at the time and a fans campaign to drive them out.
Supporters accused Hicks and Gillett of breaking their promises and crippling the club with massive annual interest payments on the loans they took out to buy it in February 2007.
The figures in essence reflect the final period of ownership under Hicks and Gillett – and were described today by current LFC managing Director ŠIan Ayre as ‘a footnote in our history’.
Ayre stresses the club’s financial landscape has transformed dramatically since the accounting period ended – three months before he, ex-Chairman Sir Martin Broughton and former MD Christian Purslow forced out Hicks and Gillett.
Ayre says the club is now ‘moving forward’.
Today’s figures also show the club’s revenues increased by £7m from £177m to £184m.
But those numbers do not embrace the record £81million shirt sponsorship deal which Ayre led the way in brokering with Standard Chartered Bank last year.
‘Administration expenses’ at Anfield increased by £20m from £162m to £182m – largely reflecting costs related to extensions of contracts with players.
There was however a profit of £23m returned on player trading – almost all of that down to the sale of Xabi Alonso to Real Madrid.
Media revenues at Anfield were up by £5m to touching £80m.
The accounts, also refer to plans for a long awaited new stadium, saying: “During the year the company committed a further £2.9m to the planning, design and enabling works of its new stadium project, giving a total of £48.4m carried forward under the heading of assets in the course of construction.
“At the year end (July 31, 2010) the directors were confident at that time that a new stadium would be funded and completed and were fully committed to the project.
“Following the acquisition of the company subsequent to the year end, the new owners are currently evaluating the best course of action with regard to the stadium.
“Whilst this review process has not been completed at the date of signing the accounts, it is highly likely there will be a significant write off of the new stadium project costs in the financial year ending July 31 2011.
“The directors continue to monitor the useful economic life of the existing stadium, which they consider to be five years including the current year.”
The ‘write-off’ references are understood to relate to expenditure regarding the new stadium design developed by Dallas based architects HKS under Hicks and Gillett’s tenure at Liverpool.
References to a ‘five year economic life’ for Anfield are understood to be necessary accounting term references - in reality Anfield as a stadium can be extended for very many more years than that at a modest annual maintenance cost.
Ayre, Liverpool’s former Commercial Director who was appointed Reds MD earlier this year, said:Š “This is a historical footnote in the history of the club.
“As much as we were well aware of the difficulties surrounding these accounts, everyone in the world is now aware of what has been achieved since.
“That sets the club up in lots of different ways.
“It has the ability to reinvest in the team, there is less debt and we can now continue to support the growth of the club.
“We have also had significant commercial growth since these accounts were published.
“The club is now in an excellent position to move forward.”
* CATCH up with all coverage from Hicks & Gillett were finally ousted from Anfield here, read an extract from Brian Reade's 'An Epic Swindle' book here and follow the ECHO on Twitter for all the latest LFC news here
