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Local Mps And Football Finance


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#1 Louis

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Posted 23 Oct 2008 - 10:57

Several local MPs have signed a Early Day motion for Royal Bank of Scotland not to review the credit facility for Liverpool FC.

http://www.publicati...dm/81021e01.htm

2308 ROYAL BANK OF SCOTLAND AND LIVERPOOL FC 21:10:08
Mr Peter Kilfoyle
Mr George Howarth
Mr Edward O'Hara
Mrs Louise Ellman
Mr Robert N. Wareing
Derek Twigg
* 6
That this House notes the Government's 60 per cent. stake in the Royal Bank of Scotland; further notes that the Royal Bank of Scotland provides a credit facility for the American ownership of Liverpool FC; is aware that the American owners have failed to deliver a new stadium for Liverpool FC, thereby delaying indefinitely the regeneration of one of the most needy areas of the country; and therefore calls upon the Government to ensure that the Royal Bank of Scotland does not review that credit facility at the end of its current term.


For arguments sake if Everton were trying to fund a new stadium or a Goodison Park redevelopment but couldn't fund it and were banking with RBS, I wouldn't expect the Government to come in and cut the availability credit lines to try and force the the board to sell. Would you be satisfied if Gordon Brown practically forced Kenwright to sell so that the development could go ahead?

I really don't see why the Government should be even thinking about intervention here, would they have signed the EDM if was not a football club but another company with funding problems for a scheme (there must be hundreds across the country right now, St. Modwens and Skem maybe? I honestly don't think so and I see this as a way for a few of the local mps to get a few votes in their local area. It wasn't long ago that Peter Kilfoyle said football clubs are private businesses and can do what they want.

Am I being cynical? Would this set a precedent so that any time a company couldn't afford a development the government would make it harder for them to acquire credit to force them to sell?
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#2 MikeO

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Posted 23 Oct 2008 - 11:30

...therefore calls upon the Government to ensure that the Royal Bank of Scotland does not review that credit facility at the end of its current term.


Are you sure you've understood correctly Louis? It says "review," not "renew" which could possibly put a completely different slant on their purpose....meaning RBS should make sure the facility stays in place.
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#3 Bill

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Posted 23 Oct 2008 - 11:41

Yeah, i agree with Mike,
Only if they review and withdrew it would they be forced to sell, But the Yanks are already willing to sell-out anyway.
It seems the recession is hitting the richest first because they always have bigger overdrafts than the poor workers. I dont think the RBS/Government Bank will withdraw the overdraft, but i'm sure the wont give anymore credit in the present circumstances.
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#4 Louis

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Posted 23 Oct 2008 - 12:31

I considered the 'review' to be the process of LFC asking RBS for a bit more leeway with the finances should any further problems occur. If RBS are asked by the government not to review, i.e. not to allow further changes to the existing terms then it could ultimately force the American owner's hands to sell. That's how I read it.

Although saying that.. I had read the fans' letter to RBS which may have clouded my judgement.
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#5 DangerMouse

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Posted 24 Oct 2008 - 12:13

Maybe there forcing them into a corner........Shared stadium anyone?????
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#6 Louis

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Posted 24 Oct 2008 - 12:49

That won't be the reason Mps Kilfoyle, O'hara and Howarth are fully in support of Everton's move to Kirkby.
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#7 DangerMouse

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Posted 24 Oct 2008 - 14:23

A move that nmost people now think is dead and burried...... we all know what mps are like

what reason can you think off then that would warrent the government stepping in like that.....
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#8 Louis

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Posted 24 Oct 2008 - 21:16

I said in the original posts, it's a publicity stunt for Liverpool fans to vote for them in the elections!

Don't forget Spirit of Shankly are seemingly very well supported.
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