Liverpool’s losses crimps Rafa’s spending plans

David Conn writes about Liverpool’s mounting financial problems. Despite record revenues, LFC’s parent company, Kop Football came away with huge losses mainly through interest payments. Messrs Tom Hicks and George Gilette have not quite delivered on their promises and although the club is nowhere close to being foreclosed, the stadium plan is effectively on hold.
The stadium maybe an abstraction but what about Liverpool’s march onwards to end their title drought? Rafa has been promised that there will be no budget cuts but it is hard to see how this is possible. The club is in danger of losing their summer targets. Gareth Barry spurned Liverpool’s overtures for a year only to sign up with City. With deep pocketed Real interested in David Villa, it is of real concern that he too will slip away. Chelsea is reportedly in the race for Glen Johnson and with Ancelotti’s arrival, Abramovich has rediscovered his taste for blowing away money.
Liverpool also has to contend with Fernando Torres and Daniel Agger’s increased wages this summer. The two are yet to sign contracts which should save the club some money. The weakened financial position has also left Liverpool prone to poaching. Real is reportedly targeting Alonso and Mascherano has been linked with Barca. There is £30m left from the RBS and Wachovia loan amount but that amount will be used in refinancing rather than on player transfers.
Rafa’s best bet is to raise money by jettisoning some of the flotsam. Ryan Babel, Nabil El Zhar, Phillip Degen, and Charles Itandje should be sold. Andrea Dossena is a big money bust. Some of that money can be recovered by a Juve transfer. Andriy Voronin’s loan to Hertha should be made permanent; likewise Jermaine Pennant’s Portsmouth move.
He could also spend more time in the off season looking at statistics and analyzing matches. Its a cheaper option. Basically, Liverpool weakened its title hopes with its run of colourless draws in the winter months. The costliest match was the one against Middlesbrough which launched their furious season end deluge of goals. In the end it was not enough to overcome that loss. Getting expensive players does not solve that conundrum.
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