Court gives go-ahead for Liverpool FC sale

THE  £300m sale of Liverpool Football Club can go ahead after lender Royal Bank of Scotland won a High Court case against owners George Gillett and Tom Hicks.

After one of the most turbulent weeks in the history of one of the world’s most famous football clubs, Mr Justice Floyd’s decision gives the green light to New England Sports Ventures, owner of the Boston Red Sox baseball team, to take Liverpool into a new era.

After hearing arguments yesterday from both sides, the judge ruled that Hicks and Gillett “do not have an absolute right to veto a sale.”

Yesterday Singapore-based billionaire Peter Lim tabled an improved £320m bid for the club  – and pledged a further £40m for new players in the January transfer window, but with a deadline for the repayment of more than £200m to RBS due on Friday, it seems likely that the board will stick with the original plan to sell to NESV.
 
Despite arguing that the NESV offer undervalues the asset, Hicks and Gillett – who put the club up for sale in June – now look set to lose £140m on the deal.

Last week the duo tried to sack managing director Christian Purslow and commercial director Ian Ayre as they and chairman Martin Broughton agreed the sale to NESV.

Judge Floyd ruled though that  Hicks and Gillett had no power to do this. Had the case gone in their favour, it is likely that RBS would have called in their loan, which would have forced Kop Holdings, Liverpool’s parent club into administration, and risking a nine-point penalty from the Premier League.

Speaking outside the court – where hundreds of Liverpool fans had gathered to await the verdict – Mr Broughton said he was ‘elated’ with the verdict.

A board meeting will be held this evening where the sale to New England Sports Ventures is expected to be ratified.

He added: “I think Liverpool Football Club can look forward to a great future with its new owners.”.