Liverpool chief executive Billy Hogan has revealed the club had been so badly managed under former owners Tom Hick and George Gillett that administration and potential bankruptcy was only weeks away when Fenway Sports Group (FSG) completed their 2010 takeover.
The Reds have been restored to their former glory in the 13 years since, winning six major trophies under Jurgen Klopp in the last eight seasons. FSG have brought in a careful financial model built on the 'moneyball' philosophy seen in Major League Baseball and the subject of the film of the same name.
Since flirting with going out of business, Liverpool's on-field success has included a Premier League and Champions League title apiece and an overall growth in value from £300m to over £4bn.
"Liverpool, it is fair to say, had been mismanaged and was heading towards bankruptcy and heading towards administration," Hogan told SportsPro.
"We as FSG came into that process late. Had we not closed by mid-October [2010], by the end of the month they were going to put the club into administration, so it was bleak.
"From our perspective we were convinced by the size and scale of the club and the opportunity that existed. I think we perhaps didn't appreciate quite how big the club actually is, and having worked for the club now for over a decade I have experienced that."
Liverpool's growth under FSG has been built on three relatively simple but core focuses: winning on the pitch, infrastructure and commercial.
"First and foremost, it's the football and ultimately winning has to be the goal, and it is certainly our goal across FSG and at Liverpool," Hogan explained.
"Secondly, we looked at the infrastructure; Anfield, the training facilities, the offices, the club superstore. You name it, there had not been investment in the infrastructure.
"Finally, we looked at the commercial side and I think the term 'sleeping giant' was used a lot during the sales process. That is something that has proven to be true. There was a lack of investment in the commercial side of the club and the opportunity to drive revenue and a return.
"Our mindset is that we work as hard off the pitch to help what happens on the pitch, and if we can drive revenues and support what Jurgen and the coaching staff and the football operations team need to do, and now Matt Beard and the team on the women's side, that is really our goal.
"It's not easy. The world today looks for instant gratification and instant turnaround and these things take time. Fortunately we have been pretty successful over the past decade plus."
READ THE LATEST LIVERPOOL NEWS, TRANSFER RUMOURS & GOSSIP
This article was originally published on 90min as Liverpool chief executive admits Reds were nearly bankrupt before FSG takeover.