Liverpool auditors raise funding concern

THE parent company of Liverpool Football Club has reported losses of more than £42m, due to interest payments on the money the two US tycoons who own the club borrowed to buy it.

Auditors KPMG expressed concern over the future funding of the club as a result of uncertainty over refinancing borrowings of £350m, which is due to take place before July 24.

In a note to the accounts KPMG said the situation “may cast significant doubt on the group’s and parent company’s ability to continue as a going concern”.

Liverpool is owned by Tom Hicks and George Gillett, but there has been speculation this year that they may be willing to sell to a Middle East buyer.

The accounts for the year ending July 2008 showed Liverpool made a £10.2m profit but the parent company Kop Football (Holdings) Ltd made a loss of £42.6m, mostly due to interest payments totalling £36.5m.

The club’s turnover was a record £159.1m up from £133.9m in 2007, as a result of higher broadcast revenues.

Hicks and Gillett last year mothballed plans for a new 60,000-seat stadium close to the club’s current Anfield home because of the credit crunch.