Liverpool’s parent company owned by Tom Hicks and George Gillett suffered a €48.6million loss last year — mainly due to interest payments on the debts the Americans took on to buy the club.
In the annual accounts released tonight, Liverpool’s accountants have also warned that remaining uncertainty over refinancing the €400m debt before the July 24th deadline “may cast significant doubt on the group’s and parent company’s ability to continue as a going concern”.
Although Hicks and Gillett say they are confident of securing a refinancing deal, the figures reveal that the financial success of the football club is being swallowed up by the cost of servicing the parent company’s loans.
The accounts for the year ending July 2008 showed Liverpool made a €11.6m profit but the parent company Kop Football (Holdings) Ltd made a substantial loss of €48.6m, mainly due to interest payments totalling €41.6m.
The clubs accountants KPMG LLP also expressed a warning in their notes in the filed accounts.
The club’s turnover was a record €181.6m compared to €153m the year before, with a profit of €11.65million.
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