By Michael Owen
When Tom Hicks and George Gillett first announced they wanted to sell the club Liverpool fans may have felt that their prayers had been answered, but that joy soon turned to doubt as the two Americans asked for a huge price for the crumbling club.
It was initially reported a potential investor would have to pay around £500m to ensure that the American duo departed from Anfield for good, a figure which isn’t likely to be reached when considering the current financial climate and the state that the club finds itself in.
But it’s not the initial cost of buying the club that represents the biggest problem for potential investors. Rather it’s the extra capital that would have to be invested into the club to ensure its long-term financial stability.
The first place new owners would have to spend money is on the new stadium, or at least the redevelopment of the current ground. The deposit required for the long-term mortgage on the new stadium in Stanley Park is believed to be £100m, which would have to be paid up front before the ground is even broken.
Whilst the redevelopment of Anfield would be significantly cheaper when considering the actual building costs the major problem is the loss of revenue through ticket sales plus the fact a new stadium is much more attractive to potential sponsors and those interested in hospitality packages.
The second big financial challenge that faces any new owners is investment in the squad. The average net spend of the ‘big four’ over the last five years has been £69.2m, a figure kept relatively low thanks to Arsenal’s positive balance and Manchester United’s £80m sale of Cristiano Ronaldo.
But with City, Spurs and even Villa spending huge money over the last three years the amount that will have to be invested into the Liverpool squad over the next five years will be far greater than the average figure of the last five years.
Current manger Rafael Benitez believes the side needs at least four or five quality players this summer, which could mean the club need to spend over £100m, something which won’t happen under the current ownership but may have to happen if the club is taken over relatively quickly.
Taking this into account the next five years could well be expensive for Liverpool in the transfer market, especially with the price of players increasing rapidly and the likes of City and Chelsea being willing and ready to splash hundreds of millions each transfer window.
There's also the years following which need to be looked out when planning spending on transfers. The likes of Chelsea, United and now City add at least one 'world-class' player every season, if not more. each summer could easily see spending top £60m if the club want to compete with those at the top.
Taking this into account, along with the deposit for the stadium, the initial cost of the purchase and interest payments on any debt which may be placed upon the club new owners may easily be looking at having to invest around £1billion into the club over the course of the next five years.
Better get searching down the side of the sofa.
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