|
|
|
|
|
British giants are Euro trashed
29 November 2009
Champions League exits have left the finances of both Liverpool and Rangers in a parlous state, writes Linda Maher.
Liverpool and Rangers may have lost out on Champions League places last week, but their balance sheets will take the real hammering after their failure to qualify for the knockout stage of the competition.
Liverpool have the slight consolation of the Europa League, which will give the club access to some prize money and income from ticket sales, merchandising, television revenue and sponsorship.
However, the failure of Rangers even to qualify for Europe’s second competition will be a huge blow to the Scottish club. Both teams will have earned about stg£15million from their limited involvement in the Champions League, with tens of millions more available if they had stayed in the tournament longer. While last week’s elimination was widely viewed as a fiasco for Liverpool, the club may face wider problems at home unless it improves its current league form.
The performances of Tottenham Hotspur, Aston Villa and Manchester City so far this season have shown that they are capable of putting pressure on the so-called ‘Big Four’ teams in the Premier League.
With only the top four teams qualifying for next season’s Champions League, Liverpool’s current position would barely qualify them for the Intertoto Cup.
Liverpool have debts of stg£290 million, with annual interest payments of stg£20 million, brought about by dealings under American co-owners Tom Hicks and George Gillett. Though failure to qualify for next season’s Champions League is something the club cannot even contemplate, it looks increasingly like becoming a reality.
While Premier League clubs earn most of their income through ticket sales, the small size of the Anfield stadium means that Liverpool cannot keep up with its rivals in this regard. A new stadium is supposedly in the offing but, without Champions League money, the prospect of this happening looks bleak. The absence of Champions League football would also leave Liverpool open to bids for many of their star players by other big English and European teams that could offer them games in Europe’s top competition.
Pepe Reina, Fernando Torres, Steven Gerrard and Javier Mascherano would be hard pressed to turn down the big-money offers that would surely come their way, particularly if they perform well in next summer’s World Cup, thereby pushing up their value. Despite Spurs’ 9-1 trouncing of Wigan last week, Manchester City seem to be Liverpool’s biggest rival for the last top four spot in the Premier League.
City’s owners have a seemingly endless pit of money at their disposal, but will be seeking a return on their investment.
The quickest way to do this is through a lucrative European run.
However, as bad as Liverpool’s situation may seem to their fans, they can be grateful that it’s not as bad as the financial straits at Rangers. Two weeks ago, the club announced losses of stg£12.7 million for the financial year to June 30, leaving a debt that has risen by stg£9.5 million to more than stg£31 million. The club’s annual turnover fell by stg£24.8 million to stg£39.7 million, the worst annual turnover the club has reported for nine years.
Rangers’ failure to make the Champions League knockout stages will make things even worse for the club, with the Premier League having recently rejected the proposal to allow Rangers and Celtic to make the move to English football.
Merseyside derby takes on extra edge
The Merseyside derby is always a competitive affair, but Liverpool’s current form is sure to give Everton an extra push this afternoon.
However, there could be an even bigger battle on the cards between the clubs, as Everton attempt to convince their rivals to share a stadium. Everton have been forced into the move after their plans for a new stg£400 million 50,000-seater stadium and shopping complex in Kirkby were rejected.
The club’s chief executive, Robert Elstone, said the club had to consider all its options, including teaming up with its neighbours.
Liverpool have plans for a replacement stadium for Anfield, but have put them on hold due to the recession. While a ground-share would allow them to get the plans moving again, Liverpool’s owners Tom Hicks and George Gillett believe it would severely reduce anticipated revenue from its 61,000-seater stadium.
‘‘The solution is not about finding land. This is a solution that is about finding money; it’s about affordability," Elstone said of Everton’s stalled plans. ‘‘That was the big attraction to Kirkby, that it was affordable. Then it’s about reviewing alternatives and sitting down with partners, all the stakeholders in this region and anybody who can help Everton deliver what it needs, which is a world-class stadium that’s going to secure our future for years to come."
|
|
|
