Saturday, October 9, 2010

Liverpool Ready To Go Any Length To Escape Penalty

LIVERPOOL have dismissed fears
they could go into administration
and be hit with a nine-point
Reports have suggested that if
the court battle over New
England Sports Ventures'
proposed £300m purchase is not
resolved by next Friday then the
Reds could suffer the hefty
points penalty.
However, sources close to the
club insist that isn't going to
happen and labelled stories to
the contrary 'scaremongering'.
October 15 is the deadline for
Tom Hicks and George Gillett to
repay their £280m debt to the
Royal Bank of Scotland.
If the sale of the Reds is not
completed by then RBS could opt
to call in their debt and put Kop
Holdings, the parent company set
up by the Americans to purchase
the club in 2007, into
That could lead to the Premier
League taking action but it's
highly unlikely to come to that.
Firstly, Liverpool are confident of
winning next week's court case
against Hicks and Gillett and
getting the takeover by NESV
Secondly, in the event of the
court ruling in favour of Hicks
and Gillett, Liverpool have various
other plans in place and even if
they fail it's not cut and dried
that administration would follow.
Only RBS can take that decision
and it's unlikely they would opt
to go down that road.
Under the terms of the lucrative
deal struck with NESV, RBS stand
to gain financially and they
would risk that if they plunged
the club into administration.
After all if the Reds were
deducted nine points by the
Premier League, which would
currently put them bottom on
minus three, NESV could decide
Liverpool is no longer worth the
£300m they have offered.
In the event of the battle for
ownership of the club dragging
on beyond the end of next week
the most likely scenario is that
RBS waive their demand for
repayment until the legal dispute
is finalised.
Liverpool wouldn't want Hicks
and Gillett being granted months
but a short extension may be
needed to ensure the legal
wrangle is sorted and they are
both banished from Anfield for
Portsmouth became the first
Premier League club to enter
administration in February and
were docked nine points but
Liverpool's situation is different.
The South Coast outfit could no
longer pay their bills but the
Reds remain a highly profitable
However, annual profits of
around £30m are currently being
wiped out by the interest
payments on the debts piled on
the club by Hicks and Gillett.
With NESV installed as owners,
the hope is that cash will be
spent on strengthening the
The deal to buy Liverpool moved
a step closer yesterday when the
Premier League gave the green
light to NESV's proposed
NESV have passed the Premier
League ’s rules on owners and
directors, and although the
American company still need to
supply full details about proof of
funds, they are closing in on
securing the club.
The league said in a statement:
“ The Premier League is satisfied,
with the information provided,
that the individuals NESV intend
to put in place in the event they
complete their takeover of
Liverpool FC meet the criteria set
out in our owners ’ and directors’
Former Liverpool player Steve
Nicol, now a coach at Major
League Soccer outfit New
England Revolution, believes the
proposed new owners will be a
good fit at Anfield.
“My understanding of this group
is that they have protected and
nurtured the history and
tradition of one of America ’s
beloved teams, while bringing
championships to the franchise,”
he said.

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