Hicks and Gillett must go or Liverpool FC will crumble

By Michael Owen

It’s a phrase that’s been thrown around far too often this season. “We should be better than this, we’re Liverpool” Yes, we are Liverpool, but not the same Liverpool that Kenny Dalglish departed from two decades ago.

Anfield doesn't have many years left (photo by Andy Nugent)

Our lack of success in recent years has been primarily blamed on our current American ‘custodians’ but the problems facing modern-day LFC are far more deep-rooted than that.

The nineties saw English football change forever, a change which Liverpool FC failed to adapt to. Whilst the likes of Manchester United and Arsenal prospered under the new Premier League format we failed to change with the times. For once our pride in our illustrious history cost us, and cost us big.

The noughties has saw big change at Liverpool Football Club, our first manager from the continent in Gerard Houlier and more recently the sale of the club to Tom Hicks and George Gillett.

Whilst the former was somewhat of a success, with Houlier taking his new-look Liverpool side to UEFA Cup, FA Cup and League Cup glory, the latter was a complete disaster that only escalated the problems which the club faced.

The way in which Tom and George have acted since taking over LFC has been claimed by many not to be ‘the Liverpool Way’. I wholeheartedly agree, but is ‘the Liverpool Way’ outdated? For me, the answer is yes.

I’m not saying that it’s bad to have traditions at the club, far from it. The traditions set by Bill Shankly and all those that followed him are an example of exactly what sets this club apart from the rest. But the Americans had the chance to re-write the rule book, add their own legacy to this unwritten code and take LFC to all new heights.

Before the Yanks came to Anfield the club had a terrible commercial record and that needed to change to stay competitive. We also needed a new stadium and fast, yes Anfield holds memories dear to many of our hearts but, unfortunately, without drastic expansion, it’s not feasible to stay at our beloved home.

If the owners had provided a new stadium and good investment in the squad then we may now be hearing pundits applauding Liverpool in the same way they do Barcelona - A club which has changed with the times but still holds on to its many great traditions that made it what it is.

Instead we’re looking at a much bleaker picture. According to experts Anfield has a lifespan of five years in its current state and there’s no sign of a new stadium. Add to that a weak squad lacking investment and you have a recipe for disaster.

The club also has debts that are slowly but surely crippling it financially. Reports have suggested it’s not all as bad as it seems, but believe me they are very, very wrong and aimed to misinform Liverpool’s fan base.

George Gillett and Tom Hicks are the drunken drivers of an old car in need of a service on the rocky road that is English football. Every now and again there’s a toll booth on the road in the form of interest payments. As the Yanks drive through more and more of these booths the less and less coins there are in the glove compartment and eventually we’ll have nothing left to give.

A simple liquidity ratio will tell you that LFC (not including its parent companies) can’t afford to cover it’s current liabilities (interest payments) with its current assets (cash in hand/in bank) and that means the club will have to look to sell long-term assets, such as players, if they continue with this level of debt.

For every Pound of current liabilities this club has it has 24p of current assets – a clear sign of the problems facing the club. Not to mention the fact that the club accounts state, despite incorrect reports, that KFL’s (the parent company) debt is ‘secured on club assets’.

Unless the club is sold quickly then the future of Liverpool Football Club is uncertain and we may see 50 years of hard work undone in less than a decade.