Liverpool's ace card against Tom Hicks and George Gillett in the
looming court case is that the £300 million takeover by New England
Sports Ventures is actually in the best interests of the outgoing
owners - because it wipes out a massive £110 million worth of
personal guarantees to the Royal Bank of Scotland.
Hicks and Gillett stand to lose a total of £254 million if the
move by the owners of the Boston Red Sox collapses and they cannot
find a replacement new owner by Friday.
ESPNsoccernet can exclusively reveal the cornerstone of
Liverpool's case at the High Court next week is that the takeover
is in everyone's best interests. The hearing is not likely until
Tuesday at the earliest.
An inside source said: "It's in Hicks and Gillett's best
interests, the board will argue, because it caps their losses at
£144 million. Part of the deal with NESV is that the Royal Bank of
Scotland wipe out the £110 million of personal guarantees."
An out of court settlement with Hicks and Gillett cannot be
ruled out as the board is so confident that they will win the
case.
Liverpool chairman Martin Broughton cannot comment on the
specifics of the case, but he has told ESPNsoccernet that
he believes he can win the case and the takeover can go
through.
Behind the scenes 'negotiations' are clearly going on between
the warring factions aimed at avoiding a messy public court hearing
that would tear the club apart. Equally, the court hearing, which
comes just days before Friday's deadline with the Royal Bank of
Scotland, is unlikely to be the end of the legal wranglings, as
whoever losses the initial hearing is sure to seek an appeal.
On the issue of an appeal, Liverpool's lawyers will argue that
if Hicks and Gillett lose and the takeover can go through, and they
call for an appeal, it would seriously jeopardise the takeover, and
potentially throw the club into administration, thereby putting the
club's survival at risk.
If the legal actions drag to a second hearing, it is inevitable
that RBS will have to take some decision on Friday, most likely to
suspend the outcome of whether to put the club into administration
pending the final court room verdict. The logical solution is for
both sets of lawyers to find some sort of middle ground, even if it
is a settlement on the steps of the High Court. There is no direct
contact anymore between the factions, with Hicks and Gillett one
one side and the three English members of the board led by
Broughton on the other.
Broughton told ESPNsoccernet exclusively: "All of these
issues I cannot possibly comment on, as this is going to court, one
would assume. We have no date for the hearing yet, but we are told
it is a 'short order' and so it would be any day hopefully early
next week. The lawyers have told me I am not unable to talk about
the case directly."
However, without going into any legal detail, Broughton said:
"Yes, I am confident we shall win. However we all know when you
have two sets of lawyers they are both telling you that they are
100% confident that they will win."
There is one central key issue of the entire legal procedure,
and Broughton made that abundantly clear: "We are going to the
courts seeking clarification that we are able to proceed with the
sale of Liverpool FC."
Although Hicks publicly declared that he had given no
undertaking directly to Broughton about the constitution of the
board and the sale process being determined by the board (rather
than the shareholders when he did his deal with RBS to extend the
facility for six months), Broughton confirmed that such an
undertaking was given to RBS.
Broughton said: "The obligation was given to RBS as part of the
loan extension agreement. If an undertaking was given to the major
creditor, than an undertaking was given."
In another twist, leaked minutes from a Liverpool board meeting
allegedly contain Hicks making personal and abusive comments about
Liverpool fans, which will increase the hatred already felt by the
supporters against the current owners.