The accounts for the full final year of the reign of the Reds' former owners have been revealed, with the Anfield club having reported pre-tax losses of £20 million
Liverpool have revealed that the club sustained £20 million losses in the financial year between August 2009 and July 2010, during the reign of Tom Hicks and George Gillett.
The co-owners were widely disliked on Merseyside for false promises over a new stadium, while being blamed for the poor financial stability of the club prior to the takeover of Fenway Sports Group (FSG).
According to the Liverpool Echo, the interest payments rose from nearly £13m in 2009 to £17.7m a year later.
During the takeover, FSG repaid around £200m worth of debt accumulated by Hicks and Gillett, and are thought to have invested some money into the squad in addition to the £50m sale of Fernando Torres.
But before the FSG takeover, the accounts filed for the final full year of Hicks and Gillett's reign show that the revenue increased by £7m, and administration expenses - largely due to player contracts - increased by £20m.
And profits from player trading was £23m, which was likely due to the sale of Xabi Alonso to Real Madrid.
The accounts read: "During the year the company committed a further £2.9m to the planning, design and enabling works of its new stadium project, giving a total of £48.4m carried forward under the heading of assets in the course of construction.
"At the year end [July 31, 2010] the directors were confident at that time that a new stadium would be funded and completed and were fully committed to the project.
"Following the acquisition of the company subsequent to the year end, the new owners are currently evaluating the best course of action with regard to the stadium.
"Whilst this review process has not been completed at the date of signing the accounts, it is highly likely there will be a significant write off of the new stadium project costs in the financial year ending July 31 2011.
"The directors continue to monitor the useful economic life of the existing stadium, which they consider to be five years including the current year."
The club's managing director, Ian Ayre, called it a "footnote" in the club's history, and said that Liverpool are in an "excellent position" to move forward under FSG.
"This is a historical footnote in the history of the club," he said.
"As much as we were well aware of the difficulties surrounding these accounts, everyone in the world is now aware of what has been achieved since.
"That sets the club up in lots of different ways.
"It has the ability to reinvest in the team, there is less debt and we can now continue to support the growth of the club.
"We have also had significant commercial growth since these accounts were published.
"The club is now in an excellent position to move forward."
Nini/Goal
