Tuesday, 23 June 2009

Peston's Liverpool analogy falls flat

Robert Peston might like the analogy he has drawn between Liverpool FC and the UK economy, but unlike struggling households, corporations or indeed the British government, the club has not incurred its debt by spending money which it did not have. If there is an apposite parallel to be drawn it might be between the Anfield Reds and Ulster Bank, which has remained profitable throughout the financial crisis, but was still forced to constrain its outgoings and shed staff due to a profligate and indebted owner.

Liverpool supporters will not be celebrating Gillett and Hicks successfully refinancing their ownership of the club. It is the Americans’ liability which fans’ ticket money is being used to service. And its is the bloody-minded greed of the two men which has prevented them accepting healthy returns on their original investments offered by prospective new owners.

Peston quips,

“It may have been foolish to borrow too much, but the lesson has been learned (presumably) and the fight goes on.”


He should apply that wisdom to the American owners rather than the football club in general.

2 comments:

Dinamo said...

When Liverpool fans stop being violent then they generally indulge in self-pity laced with so-called typical scouse humour such as chekov's article.

They really should be grateful to these kind american gentle men who have been successful in armaments and other industries.

They will turn Liverpool into a profitable soccer franchise though this will leave Everton as the natural home of all real liverpudlians.

In the right hands

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