The Owners - FSG

[Lowton_Red]

@Iftikhar

@Lowton_Red

@Iftikhar

I don’t think money would be the issue. I think FSG will cover for any shortage due to missing out of CL.

I really do hope that you are right, but if past experience is any guide I don’t think that this will happen.

Despite the recent investment from RedBird Capital (most of which apparently went straight to FSG’s pre-existent partners), FSG still have a significant debt burden (c. $600 million to $700 million). So, apart from allowing Liverpool to run up higher debt i.e. using all of its available bank facility, there might not be much scope to fund an actual injection of cash.

This is just my line of thinking,

1. FSG wants us to be self sustainable
2. But they are deeply committed to us
3. This fund shortage is unavoidable and unforeseen
4. A fund injection will actually make us self sustainable in the long run

The fact that FSG acts in a business like manner, makes it more likely that they will come up with some funds, because it makes business sense.

While I don’t disagree with your assessment in-so-far as a cash injection would enable the club to achieve a more rapid recovery both financially and on field, I question where might FSG find the necessary funds.

The RedBird investment in FSG has apparantly only provided limited funds (c. $150 million) for future investment. If these funds have been earmarked for a new acquisition, and not to provide the funds to prop up FSG’s existing portfolio, any funds FSG might choose to invest in Liverpool would have to come from increased borrowing.

If this is the case, unless FSG can obtain significantly better terms than Liverpool, FSG might as well sanction Liverpool increasing its own borrowing to the full extent of its facility.

(I hope you don’t mind but I’ve taken the liberty of replying on “The Owners” thread as it is more about FSG than about whom we might buy.)