Wednesday Football

Wednesday Football

03 December 2008

by Jerrad Peters

 

Gillett loan will impact Liverpool

 

Liverpool Football Club is teetering on the edge of financial ruin after co-owner George Gillett Jr. took out a high-interest, $75 million personal loan against the English Premier League giants.

 

According to The Globe and Mail, Gillett secured the funds on January 25, 2008 from Virginia-based lending agency Mill Financial. He agreed a five-year term at an interest rate approaching 19 per cent.

 

The deal could have dire consequences for Liverpool. Gillett and ownership partner Tom Hicks already owe approximately $600 million to the Royal Bank of Scotland for their initial purchase of the team. The loan is due to be called in January 2009 and the two will have no other option but to seek an extension.

 

Chances are they won't get it. After taking a massive hit during the current economic downturn, the Royal Bank of Scotland was partially nationalized by the British government and is in no position to grant extensions or re-financing packages on expensive loans.

 

Just two years after buying the club, Gillett and Hicks will be forced to sell at the earliest opportunity. Hicks is widely thought to have already struck a deal with Dubai International Capital for his stake in the team.

 

Valencia official pleads for calm

 

There's never a dull moment on the Costa del Azahar. In the past 12 months, Valencia have escaped a relegation battle, won the Copa del Rey and been through a trio of managers. Things seemed to return to normal when Los Che burst out of the gates this season and established themselves as a title contender. But it was too good to be true.

 

Despite their successes on the pitch, Valencia are in a struggle for their financial lives. Several rumors have suggested that the club is on the verge of bankruptcy and devoid of liquid cash. In an attempt to discredit the reports, general manager Javier Gomez addressed Spanish television last night.

 

"I want to state the following," he told Canal 9. "In the first place, what is utterly false is that the club is in bankruptcy." He continued, "Secondly, we are working hard to implement a viability plan that will give economic and financial stability to the club; and that, obviously, has its difficulties.

 

Gomez also urged fans to be calmed and stated that he is negotiating with banks to secure the necessary funding.

 

That said, the economic dilemma at Valencia is a red flag to other European teams. Los Che are a massive club and should be one of the most financially stable outfits in Spain. Their troubles are either the result of poor management at the board level or one of the first indicators that the ongoing economic downturn will substantially affect the financial viability of professional football. Clubs the world over are hopeful that it's not the latter.

 

Ronaldo wins Ballon d'Or

 

Cristiano Ronaldo became the third Portuguese footballer and fourth Manchester United player to win the Ballon d'Or when he was announced as the winner on Monday. The 23-year-old garnered 77 of the 96 votes, beating Barcelona's Lionel Messi and Liverpool striker Fernando Torres for the gong.

 

"It is one of the most beautiful days of my life," said Ronaldo. "To gain this trophy is something I dreamed of as a child. Great emotions fill me, but I cannot really explain it.

 

The winger also thanked voters and teammates before announcing, "I want to be even better."

 

Inter to make Ronaldo pitch

 

Although Real Madrid have ended their pursuit of Cristiano Ronaldo, Inter Milan have picked up where the Spanish giants left off.

 

In partnership with sponsors Pirelli, Inter are preparing a lucrative offer for the Manchester United superstar and hope to bring him to the San Siro in the summer. Pirelli—whose name appears on the Nerazzuri's shirt—also helped fund the club's move for Brazilian striker Ronaldo in 1997.

 

Interest from the Italian champions has been confirmed by Ronaldo's agent, Jorge Mendes, who also doubles as Inter manager Jose Mourinho's representative. Of course, Mendes' strategy may be to get a better contract for his client at Old Trafford. Ronaldo is currently on 120M-pounds per week and is seeking upwards of 150M-pounds. United boss Sir Alex Ferguson, however, has remained steadfast in his belief that the player should see out the length of his current agreement.

 

Mourinho has never been an admirer of Ronaldo—a fact which would seem to indicate that Mendes and Ferguson are merely playing hardball over contractual issues. However, Juventus have made inquiries about the 23-year-old's availability as well.

 

Santa Cruz to request transfer

 

Blackburn Rovers striker Roque Santa Cruz is set to request a transfer out of Ewood Park. Currently second from bottom in the Premier League, Rovers have won just three times in fifteen outings this season and just once at home.

 

The request would be music to the ears of Mark Hughes. The former Blackburn manager brought the Paraguay international to Lancashire in 2007 and coaxed 23 goals from the former Bayern Munich flop. Now at Manchester City, Hughes is desperate for a proper striker and has not been impressed by the current group of Darius Vassel, Benjani and Jo.

 

As a matter of fact, City made a late-August bid for Santa Cruz. Rovers, however turned down the 12M-pound offer and signed the player to a new contract. But with the 27-year-old demanding a move, the club will be forced to sell him and will recoup approximately 15M-pounds. City are also dangling defender Nedum Onuoha as added incentive.

 

Jerrad Peters covers football for the Winnipeg Free Press, Soccer Three-Sixty magazine, ESPN Soccernet, and Soccer365.com. His work has also appeared in The Globe and Mail, TheMirror.co.uk, Canadian-soccer.com, Footy247.co.uk, Foot2ball.com, and Squadinfo.com.