Financial News

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Royal Bank of Scotland has confirmed it is close to reaching a deal with Liverpool over the football club's debt.

The bank was unable to comment on the structure or the timing of the new arrangement, which would provide much-needed relief for players and fans alike.

The news comes as the Merseyside giant splashed out £17.5m for Portsmouth defender Glen Johnson.

The club's co-owners, Tom Hicks and George Gillett, took out a £350m loan from RBS when they took over the club in 2007.

The loan was due to be repaid by July 24.

There has been mounting speculation on Liverpool's financial future, with its parent firm, Kop Holdings, posting a loss of £42.6m in the year to August 2008.

Accounts for the year ending July 2008 showed LFC made a £10.2m profit, a significant sum for a Premier League club.

However, it remains some £20m short of the £35.5m the owners spent in interest payments on the RBS loan last year.

RBS was believed to be seeking personal guarantees from Mr Hicks and Mr Gillett before striking a new deal.

Mr Gillett's chances of meeting demands improved when he struck a weekend deal to sell his 80% stake in the Montreal Canadiens ice hockey franchise.

The club is being sold back to the Molson brewing family for an estimated £340m - almost double the price Mr Gillett paid in 2001.

Squabbling between Liverpool's co-owners has frustrated fans and left them worried about the future strength of the team.

But it seems the pair are now in step, with rumours Mr Hicks could do his bit by selling off his Texas Rangers baseball team for a profit of almost £100m.