Saturday, 9 October 2010

Christian Purslow's lack of imagination

On 22nd September Oliver Kay of the Times tweeted the following quote from Liverpool MD

"Liverpool FC isn't going bust. I can't conceive of a situation where Liverpool FC could go into administration"

My reply was

"Just demonstrates a lack of imagination on the part of Christian Purslow"

This might have been a trifle unfair on Christian because at the time he was engaged in negotiations with various parties over the sale of the club and stating that the club was on the verge of financial meltdown would not do anything for the sale price. However the combination of the October 15th deadline for paying back £280m of loans to an ever increasingly impatient RBS and owners who were both volatile and unpredictable could easily lead to administration.

It seems that the court case will determine the outcome, either Hicks and Gillett will be forced to sell to NESV or RBS will pull the plug and that means administration.

To suggest that the holding company is insolvent but the football club is not, when the holding company owns one assest the football club is a nonsense and there is no way the Football Authorities would not act as if Liverpool FC were in administration.

For what is worth I do not think the doomsday scenario will come to pass, Hicks and Gillett for all their bluster must know the game is up and will be just glad to exit with a fistfull of dollars but they will have their day in court to wring the last few drops of juice out of Liverpool.

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