Latest Developments in Liverpool FC Ownership Saga

Here are the latest developments regarding the Liverpool ownership saga:

-The Premier League has blessed New England Sports Venture’s (NESV) attempted purchase by stating that NESV meets the criteria of the league’s Owners’ and Directors’ Test. Read the statement here.

-More worrisome news comes as NESV could walk away from the deal should Gillett and Hicks prevail in the court action, fail to achieve loan re-financing and points are subsequently deducted from the resulting administration, as the Guardian reports here. Such a doomsday scenario will reinforce fear in some quarters that the club could “pull a Leeds” and tumble down the lower divisions. Leeds United were relegated from the Premiership at the end of the 2003-2004 season thanks to  the chaotic stewardship of Peter Risdale and have only recently begun the long slog up; they are currently one of the contenders in the npower Championship.

-The Royal Bank of Scotland has set an October 15th deadline for George Gillett and Tom Hicks to obtain yet more re-financing for nearly 300 million pounds of debt. Failure to meet this deadline, or sell, could result in the bank placing the club in administration.

-Club chairman Martin Broughton is racing against this deadline to achieve High Court approval for NESV’s takeover. George Gillett and Tom Hicks are, understandably, upset at this manoeuvre, and will be challenging Broughton on the grounds that they had removed vital board members prior to the decision. Moreover, they will argue that the board breached its fiduciary duty by failing to deliver an appropriate return on the sale. Andrew Nixon, a partner at London firm Thomas Eggar, told the Independent newspaper “If they [Gillett and Hicks] can give proper evidence that the £600m price they are talking about is realistic, they have a case…If they can’t prove there could be a better sale, they are going to have a very, very difficult job.”

-Liverpool may face a points deduction because of the ownership chaos. The Premier League rule states, “Upon a club or its parent undertaking suffering an event of insolvency the board shall have the power to impose upon the club a deduction of nine points scored or to be scored in the League competition.” An excellent summary of the Premier League’s point deduction process is provided by the Guardian here.

-Some prior cases may prove instructive as they relate to points deductions as detailed in this Telegraph article. West Ham United were not docked points last year because the club itself was solvent while its parent company, Straumur, faced insolvency issues because of non-football related assets in Iceland. On the other hand, Southampton were docked points because its holding company, Southampton Leisure Holdings plc, went bust with the club as its only real asset as explained here. Liverpool’s situation, while unique, is more akin to Southampton’s as Kop Holding’s only real asset is the club and the RBS debt is inextricably tied to the club itself.

-Liverpool, being a massive worldwide club, have their fair share of celebrity supporters. Some have spoken forcefully on the Anfield anarchy. Echo and The Bunnymen singer Ian McCulloch has raged to NME magazine that the club is a family to its supporters and so George Gillett and Tom Hicks’ ownership has been akin to “raping all of them at once, over a long period of time, and getting away with it.” Several prominent supporters vent in this passionate video, “Dear Mr. Hicks.”

-Fans of the Boston Red Sox are having a bit of a laugh.

What can you do about it? For starters you can join thousands of your fellow Reds in a march on the High Court in London next week as reported in the Liverpool Echo. Away from the UK, Liverpool enjoy the devotion of supporter groups from all around the world. Here is a small list of them, join one. And make sure your supporters group makes its opinion heard just like The Spirit of Shankly Supporters’ Union or American-based supporter groups such as LFC Boston, and LFC New York; which have come out in vociferous support of new club ownership.

24 thoughts on “Latest Developments in Liverpool FC Ownership Saga”

  1. Or you can just laugh at Liverpool, hope they go into administration and sit back saying karma has come back to bite them in the ass while laughing.

    1. What on earth are you on? Do you actually know the meaning of karma you fool? When has Liverpool FC anybody? You should just shut it and your names about as deep as your comments so kindly go do one! YNWA

      1. I do know the meaning of the word karma and I would say that all the crap Liverpool fans have done to people while professing loyalty to Liverpool, ie murder, threats ect are coming back to roost. I would rather walk alone then walk next to any lIverpool fan for fear of them robbing me or worse. Your club and most of its fans are pure scum with a history of being scum. I hope they go into Administration and have a fall from grace like Leeds did. It’s only fitting for cretins like you.

  2. Shakira how exactly has karma come back to bite liverpool. They have actually done anything wrong. They were big before money ruled football so you cannot have a go at them for that. The Moores family couldnt continue to run the club so he choose to sell to hicks who promised a brand new stadium, no doubt on the club and money for players. None of these things happend. How any of the that is liverpool’s fault i dont know, i think you need to look up Karma as perhaps you do not understand what it means

    1. Well your screen name just shows so much about you right there. I have met many Liverpool fans who were arrogant, dismissive fools. Their attitudes and actions of the Liverpool fans over the years are despicable, and in the past two years the New York Branch of Liverpool has had some real gems there. But if you feel the need to call me names go ahead, nice to see your keeping the perception of Liverpool fans alive and well. I know what Karma means and I meant it in the way that the actions of their fans are coming back in a bad way ie the ownership issue. I can laugh at Liverpool all I wish, and I don’t support any EPL club before you accuse me of that.

      1. Hello clown keep laughing..Karma has nothing to do with Liverpool going down..

        But then your madness can be excused as you say you are no EPL fan and you obviously know nothing about football..Keep laughing ..Mad men like you do that!!

        1. I do know about football, I happen to follow a team in the NPower championship instead of the EPL, I am also not a guy so the Mad Men doesn’t apply to me as well.

  3. One would think that the opposing side could more-than-prove that the neglect by Gillet and Hicks have attributed to a loss in value. I could claim my ’97 Camry is worth $50,000. These two clowns should understand market principles well enough.

    It says well enough what they think of the club. They’d rather see it implode and gain a couple of extra bucks, than accept that they’re getting fair market value and allow the Reds to have a fighting chance.

    1. By the way, someone should photoshop their pictures on the bodies of Randolph and Mortimer from “Trading Places.”

  4. Let keep the faith one day we will make it let support our team so You ‘ll Never work Alone From Freetown Sierra Leone West Africa

  5. Liverpool, what’ve happened to my team?? These two greedy businessmen came in with an agenda to destroy everything, and I just can’t see the reds out of the top four let alone what’s happening now.
    But we’ll be back, remember that night in Istanbul, jeez that was one hella of a glorious night, uhh I was young.
    Dear Mr. Hicks, walkaway, that’s just sad.

    Sent from Cairo,Egypt.

  6. Thanks for the concise update on various issues. I’m really nervous right now…I’m prejudiced as a Red Sox and LFC fan and am really excited at the prospect of NESV running the club.

    But, the pink Red Sox hat is uncalled for!! YNWA!

  7. Everybody uses the press in the UK to try and manipulate. The sudden run of ‘the sky is falling’ stories, just days after the ‘everything is rosy’ stories is to try and apply pressure on H&G, and more importantly to argue against their argument before they go to court.
    H&G will argue, the only argument they have, that the club is being sold at less than its value. When the FA was saying ‘no points loss for administration’, that had some merit. However, notice in all the quotes now coming from Broughton that points deduction can happen which will devalue the club and leave it open to sharks to offer less money. Also NESV are now being reported as likely to walk away from the administration. All of this, all of it, stregthens the boards case and weakens the owners. Every single word is calculated to undermine H&G’s argument before it is even made. This story is in every newspaper in the land, even the notoriously out-of-touch High Court Judges are likely to have read and absorbed this. It is a work of propaganda genius.
    Unlike any other club that has been docked points by the FA, Liverpool’s relegation would significantly impact the premier league and the FA. It would guarantee the EPL would be less profitable in 2011/12 than in 2010/11. They would be loath to dock the points for purely selfish financial reasons.

  8. I love the idea of the love of my life owning a soccer team, but does it have to be Liverpool? Anyway, great fusion of the two greatest sports on Earth, baseball and football.

  9. It seems absolutely absurd that Hicks wants to go to court to try and nullify the 300 million pounds sale to NESV. Should he win, Liverpool will go into administration, be docked 9 points and RBS will take over and will be free to sell the club to anyone, including NESV. The price quoted is about 200 million pounds which is 100 million less than NESV are willing to pay now. I think NESV will get a bargain at 200 million pounds even with the 9 point deduction since they can invest that 100 million pound savings into buying new players in January who can help ensure Liverpool avoid relegation. Most Liverpool fans don’t care if Liverpool finish 17th so long as they can get rid of Hicks and Gillette. Maybe NESV should secretly hope Hicks wins in court and RBS takes over. That way they could really get a bargain.

  10. Well said SantaClaus, so whts with H@G? Clowns for sure! Mr Henry is a good business-man and understands sports management.

  11. Hicks seems to be a man with a ‘scorched earth’ policy in business, still I have a feeling his lawyers might put some kind of offer on the table to let it go. Maybe the same deal but with him retaining some small amount of the shares – say 5%. That way if the club is turned around he can sell later and get some money. Or use the shares as collatoral for future loans.

  12. There is no way H & G win in court and even they do they only delay the inevitable anyhow. While I am no fan of Liverpool I am glad to see these two morons get kicked out with nothing in their pockets for it.

  13. Supporters of clubs other than Liverpool can laugh all they want, but just remember that we are all still in a recession and debt problems can bite ANY of the EPL’s sides at any time, so don’t be so judgemental. If the recession gets worse, which does look likely even with the government cuts and the rise in VAT next year, can you imagine what would happen if the Manchester City owners decided to walk away? With the way the EPL has become no club is safe and we need this to change, and it has to happen soon.

    But as a Liverpool fan and as sad as this debacle is, we should seek solace in the fact that NESV are viewing this as an opportunity to rebuild and rebrand a club that has needed some TLC for years.

    The reason we are getting the hate from other clubs supporters is the result of years of jealousy and will do nothing more than be laughed off by the masses of loyal fans. I also would’ve thought that as a Manchester United fan you of all people would know that a large majority of supporters aren’t from Liverpool itself – ever wonder why you do such a large tour of Asia?

    I keep hearing Manchester United fans chirping up about the situation but once again Chelsea are proving their superiority, so I guess that all the talk from your manager in the world still can’t guarantee league success huh?! Arsenal fans can also tell me till their blue in the face about their credit status, but how many of you would swap it for some real silverware?

    Simple fact remains that Liverpool had their heyday for nearly two full decades, then United reigned for a while, now its Chelsea’s turn and while every Manchester United fan says Liverpool deserve their failure – coming second is hardly the greatest of successes.

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