The Premier League will approve an Anfield takeover by the Royal
Bank of Scotland if co-owners Tom Hicks and George Gillet don't
find a buyer or repay their debt by October 6.
The RBS has had power to seize the club before but there were
concerns about league sanctions. Fans feared that if the Americans
defaulted on their loans the club would be plunged into
administration, leading to a nine-point deduction.
And that would almost certainly end their hopes of qualifying
for the Champions League with devastating consequences for the
club.
But clarification that a bank takeover is within Premier League
rules is of huge significance. It means the league recognises the
distinction between the owners' debts and the club's
debt.
The Americans face catastrophic financial losses in the region
of £300m if they miss the October deadline.
Hicks and Gillett still owe their 'acquisition debt' - currently
£282.4m - which they used to buy Liverpool in 2007 as part of the
company they created called Kop Football.
But that company exists independently from profit-making
Liverpool Football Club and Athletics Grounds Limited, whose
accounts are sent to the Premier League.
If the bank takes over, the owners' existing debts will be wiped
out but they would lose the club without receiving a
penny.
An RBS takeover will enable the bank to deal directly with
buyers from next month and sell the club for a reasonable
price.
The Kop is now braced for one of the most important months in
its history.
Hicks and Gillett desperately want more time from the bank, but
Managing Director Christian Purslow, Commercial Director Ian Ayre
and Chairman Martin Broughton have urged RBS to refuse another stay
of execution.
The bank, club and Premier League still hope a last-minute
takeover will prevent the need for bank intervention.
RBS wanted the club sold by last Tuesday and imposed strict
penalties on Hicks and Gillett to force a sale. A final charge of
£7.5m was made on August 31, after earlier penalties of £5m on July
15 and £7.5m on August 15.
But there is no immediate incentive for buyers now the transfer
window has shut and the refinance deadline looms.
A few months ago Hicks' boldly valued Liverpool 'between
£600m-£800m', though sources close to the owners dispute any such
valuation.
The owners tried to refinance in June using the club's assets
but were blocked by the rest of the board. Securing new loans
against their US assets is another avenue they're
pursuing.
But if Hicks and Gillett are unable to raise funds, they're
faced with a startling choice. They could accept a minimal profit
if a bid materialises or lose the club for nothing.
But a source close to the sale process warned: "This is a little
like one of those horror movies. Just when you think the monster
has been killed in the final scene, he somehow gets back up
again."