MP Jim Cousins attacks LFC Debt

[FranStan]

Liverpool Echo.co.uk - News - Liverpool Local News - Ministers silent as MP asks if Liverpool FC loan is a 'toxic' debt

 

Ministers silent as MP asks if Liverpool FC loan is a 'toxic' debt

Apr 9 2010 Liverpool Echo

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Anfield 300

 

AN MP today demanded to know if the crippling debt saddled on Liverpoool FC by its American owners was now seen as “toxic” – and being underwritten by the taxpayer.

 

The huge £237m debt is owed to goverment-owned RBS, but ministers are refusing to confirm claims that Tom Hicks and George Gillett’s loans has been included in the asset protection scheme (APS).

 

Jim Cousins, a Labour backbencher, described the government’s claim that disclosure would be unlawful as nonsense – insisting details had been revealed in relation to other loans. And he said the body set up to administer the APS should – if the loan was insured and it judged taxpayer funds to be at risk – demand new owners be installed at Liverpool.

 

Taking up concerns of Liverpool FC fans, Mr Cousins, a member of the Treasury select committee, said: “Ministers must come clean on whether this loan to Liverpool Football Club has been protected by the taxpayer. If it has, then the asset protection agency has a duty to ensure the taxpayer gets its money back – which means deciding whether it has been put at risk by bad management.”

 

Mr Cousins urged Anfield supporters – many of whom had urged him to find out the truth – to keep campaigning for the lid to be lifted on the controversial loan.

 

 

 

The row opens up a new front in the campaign by a group of Labour MPs, led by Walton’s Peter Kilfoyle, to use the part-nationalisation of RBS to put pressure on Hicks and Gillett.

 

The government – which took a 60% stake in the busted bank in October 2008 – was urged to pull the plug on the two Americans, forcing the pair to sell the club they took over in February 2007.

 

Last year, the Treasury announced it would insure £585bn of “toxic assets” for RBS and HBOS, a second bailed-out bank. By underwriting the loans, it hoped to kick-start lending to businesses, which dried up after the financial crisis.

 

Hicks and Gillett have until July 24 to repay the remaining £237m borrowed from RBS and American investment bank Wachovia, which they have leveraged against the club's assets.

 

Despite pledges to the contrary, the owners set a total of £350m worth of debt against the Anfield club which was only £44m in the red when David Moores sold out. Mr Cousins, the Newcastle Central MP, tabled a parliamentary question after his select committee was contacted by many Liverpool fans eager to know if the loan was considered “toxic”.

 

Various supporters’ groups have tried to put pressure on the RBS to call in the Hicks and Gillett loan to force the Americans out of the club.

 

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[red4life69]

Yeah lets keep going with this.... more emails more letters and we need more supporters to join in the cause.

 

If we can get Cancer and Aids out sooner than later then you never know what might happen with future signings etc.

 

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BUILT BY SHANKS, BROKE BY YANKS, PAY YOUR MONEY TO THE BANKS - RIP LFC 2010

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[Faustus]

Good to hear.

[Sangria]

Keep the pressure on by the looks of him last night it is starting to work.

[Gav]

Might be worthwhile getting something off to Lawro ,yes he's a bit of a twat ,but he's the first high profile ex player that i've heard to really speak out against the yanks...could be a handy ally with all his media work...last night on Irish TV he came out with some nice anti-yank comments ,best one was about "yeah I see the yanks are here ,probably flew in on private jets and helicopters and heaped even more debt on the club".

[Sangria]

Might be worthwhile getting something off to Lawro ,yes he's a bit of a twat ,but he's the first high profile ex player that i've heard to really speak out against the yanks...could be a handy ally with all his media work...last night on Irish TV he came out with some nice anti-yank comments ,best one was about "yeah I see the yanks are here ,probably flew in on private jets and helicopters and heaped even more debt on the club".

 

 

Bang on as well. Not to mention more legal fees as well.

 

A lot of people making a lot of money out of the club right now, we are a nice little gravy train.

 

Did some one say they travelled over on the same plane. The show of strength they put on last year was missing this time round.

[Chinandeler Bong]

Liverpool owners Tom Hicks and George Gillett consider stepping aside - Telegraph

 

Liverpool co-owners Tom Hicks and George Gillett are considering appointing an independent chairman at Anfield and have sounded out leading business figures, including British Airways chairman Martin Broughton, about taking on the role, Telegraph Sport can disclose.

 

The appointment of an independent chairman is understood to be one of a number of options discussed by the Americans during three days of substantive talks with their advisers in London.

Hicks and Gillett co-chair the Liverpool board but are considering stepping aside in favour of a well-respected independent figure. Such a move would make sense if they were successful in finding a minority investor to help reduce the £237 million debt, but it is understood they will consider standing down even if they do not sell a stake in the club.

[Guest TK-421]

Superb stuff from Mr Cousins.

 

Agree about pursuing things further with Lawro and credit to him for speaking out.

[WaltonRed]

Thanks Jim.

 

This is great news. We need to keep it up.

 

The election will change who we have to contact and stuff but it'll be easy enough.

[23_Carra_Gold]

Brilliant

[Guest simon]

Great to see its working.

[Monster Masch]

Good shout about Lawro.

 

Heard that yeah, first time i'v heard an ex player slate the owners on live tv.

[Marko121]

Dan Roan on the BBC website has updated his blog with the following:

 

UPDATE 1630 BST:

 

One well-placed source close to RBS has told me the matter could come to a head within the next week and has suggested that Hicks and Gillett have begun talks with a brand new US investment bank in a desperate bid to find a solution.

 

 

Apologies if this is posted elsewhere

[Stu Monty]

Wycombe used to have a right-back called Cousins if I remember rightly.

 

He was part of their hugely succesful period under the Championship Manager regin of managerial genius, Stuart Montagliatelli.

[Gav]

Wycombe used to have a right-back called Cousins if I remember rightly.

 

He was part of their hugely succesful period under the Championship Manager regin of managerial genius, Stuart Montagliatelli.

 

We have had a reserve player called Tony Cousins if memory serves me too..played under Kenny.

[StevieH]

We have had a reserve player called Tony Cousins if memory serves me too..played under Kenny.

 

Irish lad who played for the reserves.

[ChicagoRed]

I don't see how this helps the club at all. LFC needs good relationships with the financial and investment communities. H + G made a business decision to buy us and they'll make a business decision to sell.

If RBS under government pressure influences a business transaction for political reasons, a precedent would be set that would destroy RBS's credibility. It will never happen!

How many other businesses and individuals would like an MP inquiring into their relationship with the bank?

No, the best way is to let the market take its course. The insults from fans I believe don't help the players or Rafa at all. It's just another pressure they have to deal with.

The strongest message the fans can send is to stay away from games, but that's not in our DNA and they know it.

When you look around at other clubs under leveraged US ownership, soon to be joined by Arsenal, we're doing OK in this recession.

As I've said before, the true blame lies with the previous regime who failed to build a stadium and failed to build a competitive team and then cynically cashed out.

[Trucker Paddy]

I don't see how this helps the club at all. LFC needs good relationships with the financial and investment communities. H + G made a business decision to buy us and they'll make a business decision to sell.

If RBS under government pressure influences a business transaction for political reasons, a precedent would be set that would destroy RBS's credibility. It will never happen!

How many other businesses and individuals would like an MP inquiring into their relationship with the bank?

No, the best way is to let the market take its course. The insults from fans I believe don't help the players or Rafa at all. It's just another pressure they have to deal with.

The strongest message the fans can send is to stay away from games, but that's not in our DNA and they know it.

When you look around at other clubs under leveraged US ownership, soon to be joined by Arsenal, we're doing OK in this recession.

As I've said before, the true blame lies with the previous regime who failed to build a stadium and failed to build a competitive team and then cynically cashed out.

 

Were doing OK, FFS mate just fuck off would you,why an i not surprised with this response, you've done nothing but defend them in the last 6 months.

[Ginny]

I was listening to an interview with Shankley the other day about how he came in and employed a socialist scheme were all the players played for each other and there was a community feel. Now its just fuckin horrible with 2 yanks sucking the club dry for their own profit. Fuckin shame... i love this club

[Gav]

Irish lad who played for the reserves.

 

 

Yip,got a bad injury in the mini derby I think,and never recovered.Made a decent career for himself in League of Ireland afterwards

[Soup]

Good stuff from Jim. Well done.

 

We must keep it up.

[Trucker Paddy]

Fair play to Cousins for speaking up, any cance of a MP running on an Anti Hicks and Gillet ticket?

[Stu Monty]

I don't see how this helps the club at all. LFC needs good relationships with the financial and investment communities. H + G made a business decision to buy us and they'll make a business decision to sell.

If RBS under government pressure influences a business transaction for political reasons, a precedent would be set that would destroy RBS's credibility. It will never happen!

How many other businesses and individuals would like an MP inquiring into their relationship with the bank?

No, the best way is to let the market take its course. The insults from fans I believe don't help the players or Rafa at all. It's just another pressure they have to deal with.

The strongest message the fans can send is to stay away from games, but that's not in our DNA and they know it.

When you look around at other clubs under leveraged US ownership, soon to be joined by Arsenal, we're doing OK in this recession.

As I've said before, the true blame lies with the previous regime who failed to build a stadium and failed to build a competitive team and then cynically cashed out.

 

TexasRed.

 

Cheap pop, but I had to.