THE parlous state of Liverpool’s finances was made clear when it published its most recent accounts in May.

It showed the club’s owners, Kop Football Holdings, had made a pre-tax loss of £54.9m in the year to July, 2009, widening from £40.9m.

Its net debt, as of July 31, 2009, was £351m.

The club paid out £22.3m in stadium costs during the year, but moved no closer to being able to put a spade into the ground.

Interest charges cost the club £42.9m, of which £34.7m was paid on its bank loans and overdraft.

Royal Bank of Scotland chief executive Stephen Hester last month admitted his organisation’s failings in dealing with the club.

He said: “With hindsight, I think there are some businesses which borrowed too much money, and Liverpool FC was one of them.”

Liverpool FC’s increased losses came despite a £20m increase in turnover to £184.8m, which was largely attributed to increases in television revenue.

The club has begun an £81m, four-year deal with Standard Chartered, but missed out on the highly- lucrative Champions League this season, which was a significant blow to its 2010-11 budgets.