Britainas two state-backed banks are helping finance the Premier Leagueas thriving earnings and transfer fees. Both Royal Bank of Scotland (RBS) and Lloyds behave as lenders to debt-ridden soccer clubs in the most truly effective flight. And they confirmed to The Independent that they participate in credit to the others. While neither comes close to market-leader Barclays, which as sponsor of the Premier League might be expected to be seriously involved, or HSBC, the news is still set to cause controversy with campaigners. Simply because they are effectively using state resources to help finance the Premier League at any given time when all banks are facing criticism for failing to do enough to provide to Britainas legion of credit-starved small businesses that's. RBS, 81 percent held by the taxpayer, acts as banker to both Liverpool and Fulham FC. In line with the newest editor of Deloitteas basketball fund statement, Liverpool had net income listed at A9.6m but A202m of different debt bringing its total aneta debt to A192m. The team, owned by former types investor John Henryas Fenway Sports Group, which also owns the Boston Red Sox baseball team, made a pre tax income of A5m in 2011 but lost A19m prior to that. Fulham, in line with the report, had bank loans and overdrafts of A20.3m and A24.6m of other debt making a total of A46m. It made a pre-tax lack of A5.4m. The reportas figures only because the current edition continues to be in preparation, with not all groups having yet submitted their 2012 records go up to the end of 2011. Meanwhile Lloyds Banking Group acts as banker to West Ham through its Bank of Scotland subsidiary received as part of the combination with HBoS. Deloitteas record shows the East London club had bank loans and overdrafts outlined at A37.6m plus A4m of different debt creating a total of A41m. It made a pre tax lack of A18.6m in the 2011 financial year. Lloyds is 40 percent owned by the taxpayer. During the financial crisis RBS received A45bn of direct state aid and hundreds of vast amounts of pounds in other support, including insuring its bad debt and aliquiditya support when money areas were effortlessly closed. Lloyds received A20bn as well as the indirect support. Brokers privately say that credit to football clubs represents a very dangerous activity, with some clubs spending player earnings that come near if not exceed return before every other costs such as for instance surface maintenance and transfer fees are taken into consideration. aThe issue is not just the risk,a said one source. aYou may experience a serious problem with supporters when you have to call in loans.a A banker involved in football fund told The Independent: aIad instead we didnat lend to football clubs, but the higher-ups wonat allow me to stop.a While both banks insisted that they were not the sole bankers of some of the three clubsa debt, they confessed to financing other clubs borrowings. They declined to say how many clubs or how much, despite their status as state-backed people supported by taxpayer funds. Lloyds released a statement saying: shock give a array of features to sports clubs, including some football clubs. For making lending decisions we address as someone business each one of these, instead of following a broad brush approach to the industry all together. We can not discuss the facts of our exposure to the market or to specific clubs.a An RBS source said the organization lent to a of clubsa but refused to offer further details. Friend Mervyn King, the governor of the Bank of England, last week wrote to businessman Mike Benson to state his frustration and sympathy over Mr Bensonas failure to secure finance for a new flow vehicle for his business. Simon Chouffot, representative for the Robin Hood Tax campaign, said the banks should really be focusing on putting money to the economy to help it recover. He said: aWhile football fans can thank banks for keeping their clubs afloat, everybody can celebrate if the same effort is put by banks into supporting the remaining portion of the economy.a
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