Takeover of Liverpool FC looking increasingly uncertian
Mon 11th Oct 2010 | Football Club Administration
The future of Liverpool Football Club looks uncertain after it emerged the prospective new owner may walk away from the deal if the club is forced into administration.
Royal Bank of Scotland has given Liverpool until 15 October to refinance the debt owed. However, it is understood the state owed bank is under increasing pressure to call in the £237m loans which it has repeatedly extended deadlines on.
If the bank is forced to call in the loans it will mean the club will be effectively placed into administration and will be automatically docked nine points by the Premier League.
The uncertainty is having an effect on the sale of the club as the current owners Tom Hicks and George Gillett try to block the prospective sale to New England Sports Ventures (NESV). The sale was provisionally agreed by Chairman Martin Broughton last week and was supported by the club’s board. However should the sale go through, Hicks and Gillett stand to lose out.
According to the Guardian, NESV are understood to be seriously concerned at the extent to which the ground has shifted beneath its feet.
The High-Court appearance this week will determine whether the club can force the sale to NESV. However, should the court rule in favour of Hicks and Gillett then the extended legal wrangle will leave RBS in a difficult position and may force them to call in the loans.
Speaking to BBC Radio 5 live Christian Purslow the club’s chief executive said: "I'm completely focused on making sure the sale completes.
"I'm not contemplating administration and nobody should be”.
He continued: "My total priority has been to try to remove the debt which has been put on this club and which has been a cloud since February 2007.
"It is wrong that we should have so much of the money that comes through the turnstiles or through our commercial activity go to pay interest on loans.
"A bidder who has been willing, with cash, to rid of us of all this long-term debt is by far the largest and most important priority in evaluating bids.
"We have done our homework and NESV are buying this business with cash and clearing our debt which transforms our financial position overnight."
Liverpool’s fans will be glad to see an end of Hicks and Gillett’s tenure as owners who believe the Americans have destroyed their club. Liverpool sit in the relegation places of the Premier League and the prospect of a nine point deduction will surely increase the fans fears that the club is heading for long term decline.
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