Steve Morgan

[£440,000]

Should be interesting.

[Stevie H]

we shouldn't be selling liverpool to a bunch of foreigners.

[shanks59]

Can he possibly avoid sounding bitter? Hopefully he can ...

[JohnnyH]

Somebody needs to tell the lad that he simply doesn't have enough money.

[Tim]

morgan peddling the bulls*** debt figure again

[Stevie H]

is it me or is he just talking out of his a***?

[shanks59]

  JohnnyH said:

Somebody needs to tell the lad that he simply doesn't have enough money.

Very True. He wasn't very positive wrt DIC; claims DIC will finance everything on debt (Stadium to cost £230M-£240M).

[McBain]

I'm not listening but i can confirm he's talking shyte

[Red Lecter]

So,

 

- the debt is now £90-100m

 

- The stadium will cost £200-230m

 

- Parry and others will pocket £140-160m

 

The guy is supposed to be a Liverpool fan? Dragging the club through the mud at every opportunity. Tw*t!

[spencer]

Usual self-serving rubbish.

 

Claimed our debt is now 90m, maybe even a 100m.

 

Claims DIC will borrow the money to build the ground just like he would have done. Because he believes DIC will borrow to finance the takeover, their offer is not much different to what his was.

 

Actually didn't seem to know much about DIC's plans which surprised me.

[Red Lecter]

  spencer said:

Actually didn't seem to know much about DIC's plans which surprised me.

He should spend a little more time on the forums - might learn something

[Armin_Tamzarian]

Funnily enough he may be right about them borrowing to fund the stadium. The difference is that they have the resources behind them to invest at the same time.

[Falconhoof]

  Sanj77 said:

 

The guy is supposed to be a Liverpool fan? Dragging the club through the mud at every opportunity. Tw*t!

 

Nail on the head. Even if his claims had any credibility (which they don't) he shouldn't be running to the media to drag the club down.

 

I'd like to hear what his few remaining supporters have to say about this latest round of Morgan idiocy.

 

  Armin_Tamzarian said:

Funnily enough he may be right about them borrowing to fund the stadium. The difference is that they have the resources behind them to invest at the same time.

 

 

DIC are an investment group with estimated 10 billion in cash. Why, for the love of god, would they borrow the cash ?

[Tim]

  Armin_Tamzarian said:

Funnily enough he may be right about them borrowing to fund the stadium. The difference is that they have the resources behind them to invest at the same time.

 

 

I don't think he is. There isn't really a financial reason to fund an investment like this by debt. If they finance it by equity there would be a saving of upto £125m (approx £90m after tax savings), over the life of any loans, in interest. Add into that the repayment of capital.

[Serko]

tim

 

it's like having a mortgage though. It's not a bad debt to have.

[Athelstan]

Or just sell 3 of their stallions to fund it!!!

[IgPig]

  Serko said:

tim

 

it's like having a mortgage though. It's not a bad debt to have.

 

 

but if your house cost £100,000 and you had £100,000,000,000,000,000 in the bank why would you waste the money on the interest?

[Tim]

  Serko said:

tim

 

it's like having a mortgage though. It's not a bad debt to have.

 

 

But you tend to get a mortgage when you don't have the initial capital.

 

As Post Kuytal Glow has pointed out if you have as much money as DIC have then you don't need a mortgage. The only time you do it is if you have more to gain from not using the cash. I think there is more for them to gain from using cash rather than debt for the stadium.

[fyds]

Exactly - it's cheaper, quicker and more financially prudent for them to simply do it themselves.

 

I hope all those who thought Morgan was a 'good idea' or that only local scouse millionaires should be entertained in takeovers will now finally give it a rest. I can only assume in business he has had some bloody good advisors and lawyers in the past as he has always come over as a total knob.

[Armin_Tamzarian]

  Tim said:

There isn't really a financial reason to fund an investment like this by debt.

 

There is if you recieve the interest.

 

I'm not saying they won't provide the money, just that LFC may well borrow it from them. Does that make sense?

 

They're investing with a view to eventual profit, as well as enhancing the profile of their country/business and rather than gifting the money to the club surely they'll ensure that the money for the stadium is eventually paid for by the LFC business? I don't think they're just going to dump 250million from their investment pool into LFC and forget about it.

 

Only guessing obviously but I think they'll make an immediate cash investment into the business, perhaps to reduce the borrowing requirement and boost the team and then loan the rest of the money at a reduced rate to the LFC business. So we'll still be paying off the stadium in the accounts every year, just this way without taking the massive risk that if the bottom falls out of the football market/team struggles badly that it could spark the destruction of the club.

[Rimbeux]

  Cardinal Fang said:

Nail on the head. Even if his claims had any credibility (which they don't) he shouldn't be running to the media to drag the club down.

 

I'd like to hear what his few remaining supporters have to say about this latest round of Morgan idiocy.

DIC are an investment group with estimated 10 billion in cash. Why, for the love of god, would they borrow the cash ?

 

 

just to add to what AT speculated, there is still the very real possibility of naming rights being sold for a huge part of these supposed costs, which if placed correctly could cover a lot of the debt over time still leaving most of the new cashflow free. If it comes down to cashflow the reality is that £450m could be pretty pie in the sky especially where debt is concerned, with the actual cash invested going to share capital and some of the stadium cost and being far far less than this headline amount.

[millsee]

Tim,

 

Is it not the case that the interest payments can be offest against corporation tax?

[£440,000]

I thought he sounded quite reasonable. He may be wrong about the debt stuff but to me he didn't seem partiularly anti the DIC bid. He started off saying that he thought that foreign investors like DIC probably thought in a more long term sense than he would have done. That's not exactly criticism.

[wacko]

It makes sense to let LFC pay for the stadium itself so they can hold on to their 10bn to buy other companies.

[redjersey]

Morgan claimed during the interview that DIC are bidding for 100% of the club. I really didn't think this was the case. I'm not a shareholder but I know one or two people who own single shares and there is no way they will willingly sell. Is he talking though his @rse again?