Liverpool must repay £31.5 million to banking institutions in little more than a year or risk having to sell Fernando Torres and Ryan Babel.

The Times has learnt that Liverpool borrowed the money to sign Torres, the Spain forward who has scored 30 goals this season and has already become a firm favourite on the Kop, from Atlético Madrid last summer. The club then refinanced that debt on January 25, at the same time as they secured a £350 million refinancing package.

Liverpool entered into an 18-month loan agreement with interest of 9 per cent — £2.8 million a year — with a letter of credit to pay back the £31.5 million at the end of the period.

Should Liverpool be unable to pay back or refinance the loan, banks could force the sale of Torres and Babel, who was also included in the smaller refinancing package.

It is unusual for Barclays Premier League clubs to buy players in this way. Deals are normally funded using television income. Liverpool have to pay £30 million a year in interest payments on the £350 million loan, the terms of which end in July 2009. There was no official comment from the club last night.

The revelations came on a day when the turmoil at Anfield reached a nadir after Tom Hicks attempted to strengthen his grip on the club during an interview in which he demonised his enemies inside and outside Anfield. However, the Liverpool co-owner has only six weeks to raise the funds he needs if he is to achieve his goal of buying the club outright.

What baffles me is that Tom Hicks is worth $1.3 billion USD and also owns the Texas Rangers and the Dallas Stars. While George Gillett is worth $1.1 billion USD and owns the Montreal Canadians, NASCAR auto racing team, and is currently in talks with the MLS to own a club in Montreal if the MLS chooses to put a franchise there.

They both have experience in running sports clubs, yet they seem to not understand how to run Liverpool. Why would they take out a loan to buy Torres and Babel when they could just pull it out of their pockets and buy them knowing the money that they'll bring in for the club. They are making themselves look like fools by continuing to take out loans for this and that and paying outrageous amounts of money in interest and it's just not good business. It's just shocking to see this from two guys that should know what they are doing with the business and money aspect of things like this. They are way in over their heads. DIC are probably laughing, and waiting for it all to come crashing down so they can pounce on it.

We will never sell Torres because of debt. If it becomes too much one of the Americans will have to pull out and let DIC come in. They will be waiting, and they certainly won't let Torres go.

he always can come to ajax...

Nah, we'd rather led Kuyt go back to Holland. You can take him off our hands if you like?

If Torres goes to Manchester United, it's definitely GAME OVER for all the other teams.

That wealth is ALL on paper

Hicks was typically bullish about his prospects of raising the money — or, perhaps more realistically, finding the financial backing — but while he continues to explore his options with Merrill Lynch, his latest financial adviser, the clock is ticking.

Hicks has denied rumours in the City that he is under pressure to refinance his Hicks Sports Group, which holds his stakes in various sports franchises in the United States, but a deadline is looming to buy Gillett’s stake, which is the subject of a rival bid from Dubai International Capital (DIC), the private-equity investment arm of the Dubai Government.

Under the terms of their takeover 14 months ago, Hicks has pre-emption rights on Gillett’s stake in Liverpool and vice versa. That option is understood to expire 90 days after he was informed of DIC’s £200 million offer to Gillett, which was made on February 27. That period would expire on May 27, six days after the Champions League final in Moscow.

That's the best bit of news to come out of Anfield for a good while. The real fear of mine has been that both Gillett and Hicks need permission to sell their stake, yet Hicks won't sanction the selling to the only interested party in DIC, and neither will allow the other to gain full control by selling directly to them. Which sort of presents you with a scenario of no-one can do anything - likewise with Parry, where Gillett needs to approve Hicks' motion to sack Parry, else it can't be prossesed. You simply can't function and every aspect conjures a stalemate.

I don't really care if DIC don't make us instantly amazing - i'm not under the illusion that they will - but i just, like others, want a professionally run club.

As for Torres leaving, i don't think it will come to that. Seems little more than a scare story to me.

wow.. i like the sound of that.. since we're probably signing a new striker for next season.. hahahaha..

This is a load of nonsense.

If anything Liverpool will be signing players instead of selling Torres and Babel. We've already got a senior player signed although the player has yet to be revealed. Only thing we know that is the player is not English but speaks the language.

I believe Rafa has hinted that they're a Bosman, or a "cheap", signing. Like Voronin. That's what i was saying when he first revealed it - no-one of any note will negotiate well before the seasons end. He has said however that they're a player to go into the first-team, which leads me to believe he's perhaps a full-back.

Kaladze?

That's who i thought.

Very good player, and Milan are poo, so it's understandable that he could've negotiated before the end of the season.

His name keeps popping up. He speaks English but isn't English. Makes sense.

How can Rafa buy or sell players with a 50/50 split in the boardroom?

If you think torres and babel are leaving and Liverpool are in turmoil you are seriously diluded neither will be sold its yet more scare tatics hyped up to try and unhinge Liverpools Champions League bid....

wait until the seasons end and everything will be clarifed along with new faces and id say at least 20-30 mil on new players and if im wrong ill eat my words

This was reported in the Financial Times.......I don't think they are interested in the Champions League or in your so-called scare tac-tics.

Has it scared you? Get real.....it's news and that's what sells newspapers!

Grow up son relax and dont get so angry its merley my opinion and like ive said if im wrong i will freely admit it. although some how like every other big team i cant see Liverpool selling their prized asset in the long run everything will be sorted out and Liverpool will buy not sell players... oh and one more thing if you believe everything you read you lead a sheltered little existence

Not sure what you mean, I think my comments were completely grown up, and I don't believe it was me making the personal and childish criticism's. I'm sorry if the news upset you but that's life, it's full of bad news. I'm also completely relaxed about it and I never ever get angry or lose my cool on forums, and I do find it amusing to see others losing their rag on here and rubbishing posters for merely expressing an opinion. Oh yes, this particular section is about rumours and news items, and I was merely highlighting an article in the Times. Does that mean I believe everything I read? I don't think so. You are making assumptions you can't substantiate my friend. I think it's you that needs to relax and calm down...my son

Then why get so uptight you cant honestly believe this article to be true it is propaganda to derail a team who has been subject to scrutiny from certain members of the media all season....seriously im asking you an honest question do YOU think a club of Liverpool's size will let themselves be drawn into a financial meltdown and then subsquently lose their top assets?

they will never sell torres!