o/t Financial peril for Liverpool F.C
Posted: Mon Nov 02, 2009 8:47 pmOne of those little tales doing the rounds at the moment:
"A £15m bond on Liverpool FC has been issued for Roma as that amount remains outstanding on the Aquilani deal. Three £5m intallments are due Jan 2010, June 2010 and Jan 2011. After several attempts it has been confirmed that no bank will guarantee it due to their current form on the field. They have had to resort to issuing an Insurance backed bond, a very risky way to aquire finance, mainly as 2 out of the 3 payments will fall beyond the period of guaruntee, this means that they are insuring the bond against Champions League receipts"
The reason why this has caused a stir?
The last time a premier league club applied for a Insurance backed bond - Leeds United and the Rio Ferdinand transfer
"A £15m bond on Liverpool FC has been issued for Roma as that amount remains outstanding on the Aquilani deal. Three £5m intallments are due Jan 2010, June 2010 and Jan 2011. After several attempts it has been confirmed that no bank will guarantee it due to their current form on the field. They have had to resort to issuing an Insurance backed bond, a very risky way to aquire finance, mainly as 2 out of the 3 payments will fall beyond the period of guaruntee, this means that they are insuring the bond against Champions League receipts"
The reason why this has caused a stir?
The last time a premier league club applied for a Insurance backed bond - Leeds United and the Rio Ferdinand transfer