Liverpool bank loans rise in deficit 2019-20
By David Owen
April 28 – The value of long-term bank loans on Liverpool’s balance sheet nearly quadrupled in 2019-20 to just under £ 197million on May 31. But year-end cash rose by a similar proportion to £ 149.3. million.
The Reds’ recently published accounts for what ultimately turned out to be the season they finally won their 19e The leading UK headline reveals that a refinanced revolving loan facility of £ 200million was “fully drawn” before year end.
The five-year facility, which would be available for “general business purposes” including working capital and letters of credit, carries an attractive nominal interest rate of 1.21%. By comparison, a £ 50million revolving facility included in the previous year’s accounts carried a nominal interest rate of 1.96%.
The accounts also show that the covenants linked to the £ 200million facility were successfully renegotiated after the end of the year.
The amount of an interest-free intercompany loan, on the other hand, rose during the year from £ 79.3million to £ 71.4million.
The United States-controlled club, one of the future rebels in the European Super League, said the main element of a £ 24.5million increase in property, plant and equipment linked to the new training ground in Kirkby. He said that figure included “the impact of the sale of the Melwood training site in August 2019 to Torus, a local housing provider.”
As previously reported, Merseyside’s outfit fell for the covid-affected 2019-2020 period. Staff costs, which climbed around 5% to £ 325.6million in a year in which turnover fell, was a big factor in this regard.
The club managed to make a profit of £ 26.9million on the sale of player registrations, with the sale of striker Danny Ings to Southampton apparently the main ingredient. The consolidated cash flow statement, however, appears to indicate that the club suffered a cash shortfall of almost £ 90million on transfer transactions in 2019-2020, with player sales proceeds of £ 32million plus that offset by purchases of £ 121.5 million.
According to reports, the club “always have and continue to have a unique relationship with its loyal and dedicated fan base. He recognizes and respects the invaluable contribution of each supporter to the success and longevity of the club. As such, Liverpool Football Club strives to be open and accessible to its supporters, communicating information through the appropriate channels in a clear and effective manner. “
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