Anfield MP predicts Liverpool FC financial ruin under Gillett and Hicks

A leading Merseyside politician has fired a warning to Liverpool FC that they risk financial ruin if their current ownership does not change hands.

Anfield and Walton MP Peter Kilfoyle believes that George Gillett and Tom Hicks cannot continue to service the debts the club incurred as part of a refinancing deal agreed with the Royal Bank of Scotland.

Since the takeover by the Americans in 2007, the Reds have plunged into debt and currently owe the high street giant £237 million based on the agreement made on a loan two years ago.

Last weekend, private equity firm the Rhône Group tabled a bid, believed to stand at £118 million, for a 40% stake in the club but sources close to Hicks claim that the Texan is unimpressed by the New York-based consortium's meagre offer.

Rhône are notorious in investment circles for orchestrating leveraged buyouts and sent shares in surfwear manufacturer Quicksilver plummeting last year after providing £100 million in exchange for a 20% stake in the brand.

Anfield chiefs, however, have stressed that the offer would not be a loan and believe that the move would not only reduce the interest on repayments to RBS from its current standing of £30 million per year, but also provide funding for a new stadium on Stanley Park.

Kilfoyle, who will stand down after 19 years in the North Liverpool constituency, has predicted that the Liverpool will have to change owners in order to avoid a similar fate suffered by last night's opponents Portsmouth.

“I think Liverpool needs to get its ownership changed and sorted once and for all," he told the Liverpool Echo.

“I don’t believe that they any more than [Manchester] United can continue to carry the kind of debts they’re carrying. People say things will go on and on and advertising will keep going up and this, that and the other. This is nonsense.

“If we have learned anything from this banking crisis a couple of years ago, it’s that what you least expect is going to happen is round the corner.

“We’ve seen Portsmouth go into administration, West Ham are struggling on and off the pitch.

“There’s no reason why United and Liverpool can’t end up as financial disasters, no reason whatsoever.”

Before last night's 4-1 game, supporters displayed a series of banners opposing the ownership of their respective clubs with fans of both sides held one proclaiming 'Leeds, Pompey, Liverpool?' across the divide of the Anfield Road stand. Chants against the club's owners were also aired during the game.

Paul Gardner, a spokesman for Spirit of Shankly - the Liverpool Supporters' Union, said: "It's nice to see more and more people, like Peter Kilfoyle, coming out and speading the message about the current ownership problem.

"We welcome new owners but the key thing is, as a banner before the Everton game last month said, they have to be proper owners.

"We should learn from the lessons that Portsmouth have suffered.

Last night we had plenty of banners out, made by SOS and its members. One was held across the divide between the home and away fans.

"It shows the extremity of the situation that fans from both these clubs are suffering financial problems due to unfit owners.

"We all need to work together as Liverpool fans to get Hicks and Gillett out before it's too late."

Mr Kilfoyle's comments come after pop star and Liverpool supporter Chris De Burgh voiced his displeasure at Gilett and Hicks' Anfield tenure, which he described as "a complete b******s".

Fernando Torres also gave an interview in the Spanish press, claiming he would consider his future away from the club if the owners failed to provide backing for a number of signings in the summer.

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