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Liverpool Crisis Resolved as Debt Refinanced

By Mark

Liverpool's North American owners closed Friday on a much anticipated 35o million pound loan from Royal Bank of Scotland and Wachovia Bank putting to rest for the time being any ideas that the club will be sold to Dubai Investment Corporation, the investing of Sheik Mohammed, the ruler of Dubai.

Also today, owners Tom Hicks and George Gillett unveiled a design for a new 71,000 seat stadium and indicated that work can be begin immediately with a portion of the proceeds of the loan. Although the stadium capacity exceeds the 60,000 for which Liverpool has approval, the stadium design fits within the approved footprint so no trouble in gaining approval for the new design is expected.

Finally the fate of Rafa was put to rest as Hicks announced that he would fill out the remaining 21/2 years of his contract. Acknowledging some communication issues, Hicks said they would be addressed and that Benitez's job was not in danger. That should calm some of the fan unrest as should the assurances that the club is now on firmer financial footing and that the ownership issues appear to be settled, even though Gillett was not in evidence in person, by phone or by signature on any of the public statements.

Full post as published by Sports Biz on January 25, 2008 (boomark / email).