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Liverpool FC could face points deduction

Fri 8th Oct 2010 | Football Club Administration

Prospect of Liverpool Football Club being docked 9 points should come as no surprise to Liverpool fans.

The club, which is the middle of a takeover battle could be docked the points if current owners Hicks & Gillett are successful in their attempts to block the proposed takeover by New England Sports Ventures (NESV).

If the High Court rules in favour of the current co-owners and blocks the sale to NESV, it is likely that RBS could call in its loans which including penalties, amounts to around £280m.

Should this happen it would effectively place Liverpool’s holding company, Kop Football (Holdings) Ltd, into administration, triggering a likely points deduction.

According to Premier League sources this would trigger a “significant risk” of a points deduction, even though the insolvency was at the holding company and not the club, and despite Liverpool FC itself being solvent.

This would not be the first time a club has been docked points in this manner. Southampton were docked points by the Football League when its holding company was pushed into administration because the club was its only asset, and the football club itself was insolvent.

Commercially, Liverpool have had an outstanding year having signed an £80m four year deal with Standard Charter. However, they have been unable to compete in terms of matchday revenues due to Anfield’s capacity of 44,000.

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