Liverpool reveal £20m transfer spending cap
Can the Reds compete with the big boys on such a budget?
Hank Hicks and Billy Bob Gillett’s popularity on Merseyside ranks somewhere between The Sun and cancer, and they won’t be winning any praise from Liverpool fans for their fiscal planning. According to an investment prospectus uncovered by Bloomberg News, the club’s forays into the transfer market will be limited by a £20m spending cap until 2014.
The Daily Mail reports:
The startling revelation was published in a prospectus back in March by investment banks Rothschild and Merrill Lynch to attract potential investors in the club.
The £20m spending cap, which will also include wage increases accruing from contract renewals, means that Anfield boss Rafa Benitez must continue to sell before he can buy over the next fives years as Liverpool chase their first league title since 1991.
While the majority of Premier League clubs froze or lowered their season ticket prices this season, the document revealed that Hicks and Gillett were also considering an eight per cent hike in admission fees to cover some of the club’s debt. This idea was eventually scrapped, but revenue streams will be created with the addition of 1,000 corporate seats at Anfield, some Liverpool-branded academies, secondary sponsors and the improvement of catering facilities at the ground.
The transfer cap will obviously come as bad news to Liverpool fans, who saw Xabi Alonso, Alvaro Arbeloa and Sebastian Leto sold to make way for a crocked Italian, a cast member from The Wire and a random greek chap this summer.
Plans for a fancy new stadium stadium have also been put on hold until the “economic situation improves“.
So, will Liverpool still be able to compete with the rest of the Big Four/Big Five with such a limit on spending? Let us know your thoughts below…