Originally Posted by Tom R
This so-called "credit crunch" won't really make any difference unfirtunately.
It's not like he's borrowed on a variable rate or anything. It's a fixed rate, over a fixed period. So providing the money is coming in to the club then the debt is being serviced.
Basically, as SOS an many others keep saying, and everyone continually ignores, the only way to help the club is to STOP SPENDING MONEY THERE.
Lack of cash coming in = payments on loan in jeopardy = bye bye Tom Hicks.
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Thats not true you have to remember that Liverpool isnt the only one of Hicks' businesses that is funded this way. All of his businesses are funded with bank loans that need servicing at various times.
You also have to remember that the particular loan he took out to buy Liverpool is one that needs to be serviced in less than 18 months time, so while your right that he borrowed at a set rate and a fixed period that has to be done again in less than 18 months by which time the financial situation in the US could be much worse and then he'd have huge problems getting someone to loan him the money especially if his overall financial situation is weaker than it currently is.
I think if the credit crunch continues all of Hicks' businesses will be affected which obviously makes a sale of his share much more of a possibility. If he leaves it too long, he loses any potential bargaining power he may currently have.