Liverpool Duo Hit By Expenses Row
Media reports have revealed that Liverpool’s US owners Tom Hicks and George Gillett have charged the Premier League club expenses to the tune of £2m to cover their travel, legal and other personal costs, mirroring the high-profile issue currently overshadowing the UK government.
Recently disclosing their sizeable personal debt of £42.6m, the owners’ accounts that have been published for their holding company, Kop Football, for the year to 31st July 2008, show that Hicks charged £192,000 for ‘third party consulting, travel and other expenses’, while Gillett charged £129,000 for ‘reimbursable travel, legal, personnel and other expenses’.
The total expenses charged to Kop Football, for the owners and their affiliated companies, in 18 months from their takeover in early February 2007 was £1.85m.
As Kop’s only asset is Liverpool Football Club, the reimbursement of these expenses come from the club’s income, which is made from television, ticket sales, and other commercial earnings.
However, Hicks and Gillett did loan the firm £58.2m from their own holding company in the Cayman Islands last year.
The findings were coupled with the exposure in the same accounts report that Hicks and Gillett have lost £42.6m in the last financial year, which triggered ‘significant doubt’ by auditors on the future of Kop Holdings.
This, along with the revelation about millions of pounds in expenses being charged to Liverpool has undoubtedly further angered supporters’ groups campaigning for the American owners to sell the club.
