by King of Sting »
11 Dec 2013 20:13
YateleyRoyal And what about the fact the club were screwed when sugar daddies hicks and gillet were there, so it got sold to another sugar daddy john Henry?
A Sugar daddy owner is one who pumps in money from their own personal wealth.
Hicks and Gillete were the anti thesis of sugar daddy owners. They purchased the club using a leveraged buy out. This means that they borrowed the money to buy the club and then put that debt onto the club. Liverpool went from being run on a £30m overdraft paying £3m a year in interest a year to about £400m debt with over £40m a year interest.
John Henry and co then purchased the club for the price of the debt wiping out the interest on the understanding that LFC become self sufficient. Record sponsorship deals off Warrior, gate receipts and TV revenue etc has made this possible.
This really shouldn't be on the thread for our friends across the park so sorry about that.