Dawning of a new
era? Liverpool fans have long campaigned to get rid of Hicks and
Gillett - now they have new American owners
Crisis club Liverpool have agreed to sell up to US company New
England Sports Ventures in a move that is set to end of the reign
of Tom Hicks and George Gillett.
The deal is now subject to Premier League
approval and the resolution of an incredible board row on Tuesday
night that shed more light on the mess the club is currently
in.
Reds chairman Martin Broughton said: 'I am
delighted that we have been able to successfully conclude the sale
process which has been thorough and extensive.
'The board decided to accept NESV's proposal
on the basis that it best met the criteria we set out originally
for a suitable new owner. NESV's philosophy is all about winning
and they have fully demonstrated that at the Red Sox.
'We've met them in Boston, London and Liverpool over several weeks and I am immensely
impressed with what they have achieved and with their vision for
Liverpool Football Club.
American dream went wrong: Hicks and Gillett never
won over the Kop faithful
'By removing the burden of
acquisition debt, this offer allows us to focus on investment in
the team. I am only disappointed that the owners (Tom Hicks and
George Gillett) have tried everything to prevent the deal from
happening and that we need to go through legal proceedings in order
to complete the sale.'
NESV owns a portfolio of companies including
the Boston Red Sox. The team are owned by John William Henry ll, a
hedge fund specialist with a net fortune of around £545m who is
determined to expand his sporting interests by buying out current
owners.
Henry is understood to have placed
negotiations in the hands of the baseball club's chief executive
Larry Lucchino, who specialises in franchises planning to build new
stadiums and is said to have held talks with Anfield's under-fire
hierarchy.
Lucchino's involvement will enhance the
prospects of a deal with the Red Sox, since Broughton and Purslow
have insisted all along that any prospective purchaser must give an
undertaking to proceed with the construction of a new ground
at Stanley
Park.
Henry was behind the takeover of the Red Sox
for close on £420m in 2002, and they have since won two World
Series. But worryingly for long-suffering Liverpool followers, Henry has courted controversy at
times.
He caused uproar in 2006 by proposing a
change of kit and 200 per cent ticket price hike, while some
leading American publications have questioned the company founded
by the Illinois-born 61-year old.
The Boston Magazine reported in March 2006
that it had encountered 'difficulties', while, a year later, the
Wall Street Journal and Bloomberg noted further problems with the
firm.
The on-going boardroom battle between
American owners Hicks and Gillett and their England-based
colleagues escalated to dramatic new levels on Tuesday
night.
Crisis: Liverpool are in turmoil on the pitch to
add to the problems off it
With news of two new 'excellent' bids
having been received, the pair, led primarily by Hicks, attempted
to sack managing director Christian Purslow and commercial director
Ian Ayre from the board minutes before a meeting to discuss the new
offers.
The move was intended to allow the Americans
to regain control of the sale process, handing them the final say
on any offer.
Hicks and Gillett wanted to install Mack
Hicks, one of Tom's sons, and Lori Kay McCutcheon, financial
controller at Hicks Holdings. This was rebuffed as the two club
officials, backed by chairman Broughton, out-voted the
Americans three to
two.
The club issued an unprecedented statement
detailing the saga in which they also revealed this boardroom issue
was now the subject of a legal review.
However, the statement pointedly went on to
stress that Broughton, Purslow and Ayre would 'continue to explore
every possible route to achieving a sale of the club at the
earliest opportunity'.
There has been a division on the board from
the moment Hicks and Gillett announced in April they wanted to end
their three-year tenure at Anfield, but that split has turned into
a chasm.
Broughton was appointed as independent
chairman as part of the sale process, ensuring the Americans no
longer had a majority vote and could not prevent a sale that was in
the best interests of the club.
Major move: Boston Red Sox owner John Henry has
swooped for Liverpool
Central to the whole saga has been next
week's looming deadline for the repayment or refinancing of
£282million of loans - owed principally to the Royal Bank of
Scotland.
Hicks has been trying to hold on to power by
attempting to raise capital to pay off or reduce the debt but has
so far been unsuccessful.
He remained steadfast in his belief there was
a profit to be made from the sale of Liverpool but, with the prospect of RBS having to call
in their debt and possibly take control at Anfield, the price the
club is actually worth has been falling by the week.
The Americans know if the bank steps in then
they will receive nothing, hence the move to restructure the board
to buy them more time.
A statement from the pair on Tuesday read:
'In April, we confirmed our agreement to sell Liverpool Football
Club, and appointed a new chairman and advisers to oversee the
process.
'At that time we and Martin Broughton stated
our commitment to finding the right buyer for LFC, one that could
support and sustain the club in the future. We remain committed to
that goal.
'The owners have invested more than $270m in
cash into the club, and during their tenure revenues have nearly
doubled, investment in players has increased and the club is one of
the most profitable in the EPL.
'As such, the board has been presented with
offers that we believe dramatically undervalue the club.
'To be clear, there is no change in our
commitment to finding a buyer for Liverpool Football Club at a fair
price that reflects the very significant investment we've made. We
will, however, resist any attempt to sell the club without due
process or agreement by the owners.'
But with the trio based in England determined
to push through the sale and the overtly-positive terminology used
to described the two bids - the first time the club have officially
confirmed formal interest - it appeared to be the beginning of the
end for Hicks and Gillett.
The only stumbling block which may delay the
process is the legal review and uncertainty over the status of the
current Liverpool
board.
The latest statement from the club confirmed
the sale was 'conditional on Premier League approval, resolution of
the dispute concerning board membership and other
matters'.
As well as the Boston Red Sox baseball team,
NESV also owns New England Sports Network, Fenway Sports Group and
Rousch Fenway Racing.
Liverpool are also in mess on the pitch. They are
currently stuck in the Barclays Premier League relegation zone,
while they were also knocked out of the Carling Cup at home to
League Two minnows Northampton.
And after another humiliating defeat
to Blackpool
at Anfield on Sunday, fans called
for the return of legend Kenny Dalglish with manager Roy Hodgson
under increasing pressure.
