Liverpool takeover battle heads for the courts

LIVERPOOL FC chairman Martin Broughton has conceded that owners Tom Hicks and George Gillett could yet scupper the potential sale to Boston Red Sox owner New England Sports Ventures.

In an interview on the official website www.liverpoolfc.tv Mr Broughton, the respected businessman who is also chairman of British Airways, said he expects a court case to be heard next week, to resolve the matter.

Americans Hicks and Gillett believe the reported £300m sale of the historic club undervalues it substantially, and on Monday night tried to oust managing director Christian Purslow and commercial director Ian Ayre – a matter which is also heading for the courts.

Mr Broughton said he was ‘confident’, based on legal advice, the deal would progress and the club could move on – without the mill-stone of £280m debt amassed by Mr Hicks and Gillett and owed to Royal Bank of Scotland.

He said: “The key thing is the court case. We need to go to the court to get a declaratory judgement, which is for the court to declare that we did act validly in completing the sale agreement, and then the buyers can complete the sale.

“We have to get Premier League approval and I’m certain that’s not going to be an issue. There are one or two minor things like that but the key issue is the court, which should meet I would think next week sometime. That is the most likely time, in short order.”

Asked if the current regime can block the deal, he said: “Well, we have to win the court case. So effectively yes, if they win the court case they can block the sale. But then we may have one or two other thoughts in mind as well.”

He said the matter should not take months to be resolved: ” We should get a declaratory judgement I would have thought probably by the end of next week, in short order. There is an appeal process but that is also very fast.”

He later told The BBC that the current owners – who would lose more than £140m if the sale goes through – still had a chance to do the right thing for the club.

“I think it is a great pity that at the end of an extensive process that has been seeking a competitive bid, that they are not going to take the last opportunity to be the good guys and pass on Liverpool to the right owners.”

Gareth McIntegart, corporate partner at law firm DWF in Liverpool said the situation was like a ‘game of chess’.

“It looks certain that the club will be sold and it seems likely, now that the board has gone public and signed a contract, that it will be sold to New England Sports Ventures. 

“The only key question left is – can agreement be reached to keep the club out of administration or will Hicks and Gillett dig in their heels and force RBS into pushing the button on the nuclear solution and appointing administrators to formalise the sale.”