Liverpool, Red Sox owners agree to sale

[Forkboy]

LONDON -- Liverpool's board agreed to sell the debt-riddled Premier League club to the owners of the Boston Red Sox on Wednesday, but may have to take legal action to force out the existing American owners.

Current co-owners Tom Hicks and George Gillett Jr. have already said they will resist the bid from New England Sports Ventures, which owns the Red Sox, and a separate bid from Asia.

Hicks and Gillett said the Boston bid -- and one from an unidentified Asian investor -- "dramatically undervalue" the 18-time English champions.

Liverpool chairman Martin Broughton said the Red Sox owners have offered to pay $477 million, which is only likely to cover the debts and bank charges stemming from the leveraged 2007 takeover by Hicks and Gillett.

http://espn.go.com/sports/soccer/news/_/id/5654048/liverpool-agrees-sale-boston-red-sox-owners-pending-resolution-board-dispute

[joeybee12]

1. So, I assume this means the Red Sox are branching out into areas other than sports

:evilgrin:

[Forkboy]

2. Baddaboom!

:rofl:

[hughee99]

3. Did Tom Hicks run TWO franchises into the ground?

I thought it was just the Rangers.

[JonLP24]

4. He also owns Dallas Stars

50% of Liverpool.

[MrCoffee]

5. I'm just glad Hicks/Gillett are getting completely fucked in this deal

Martin Broughton is a stone badass. Tom Hicks tried to oust two board members yesterday, and Broughton told him to suck it.

http://www.liverpoolecho.co.uk/liverpool-news/local-news/2010/10/06/liverpool-fc-sale-chairman-martin-broughton-says-john-w-henry-and-new-england-sports-ventures-will-be-excellent-owners-100252-27413801/

[El Supremo]

6. Watch out. Hicks will stretch this out for a year.

And New England Sports Ventures will end up swallowing a big one.

[MrCoffee]

7. This will be wrapped up in a week

The board is seeking declaratory judgment that the sale is valid. They want the idiots gone.

[muriel_volestrangler]

8. And the bank will force the club into administration if it isn't done by then

It isn't clear from the ESPN story, but that bank loan is at the centre of this:

With just 10 days left before Royal Bank of Scotland would seize control of the club as its main creditor, the club has announced that it is negotiating with two bidders it regards as credible, one of which is the owner of the US Boston Red Sox baseball team, John Henry.

These bidders are prepared only to offer between £250m and £300m, enough to pay off Liverpool's bank creditors, led by Royal Bank of Scotland - but not enough to provide any recompense to the club's current owners, Tom Hicks and George Gillett.
...
But their tactics are dangerous - because Royal Bank of Scotland has made it clear that if no takeover is agreed by next Friday, it will put the club into administration and then sell it to on.
...
What is unclear is whether John Henry's US sports conglomerate will buy Liverpool Football Club in a conventional transaction, as a going concern, or whether Liverpool will yet be forced into administration under insolvency procedures - and under those circumstances New England Sports Ventures would buy Liverpool from Royal Bank.

http://www.bbc.co.uk/blogs/thereporters/robertpeston/2010/10/liverpool_takeover_becomes_soa.html

RBS (chief shareholder: Her Majesty's Government, after RBS was about to go bust from incompetence in the banking crisis) wants its money back.

[MrCoffee]

9. If the board can get declaratory judgment, the takeover will be agreed

RBS doesn't want to own LFC. Not in a million years do they want to. All RBS cares about is the acquisition debt, which they hold and consider toxic.

NESV issued a statement today in which they clearly address the RBS debt:

NESV wants to create a long-term, financially solid foundation for Liverpool FC and is dedicated to ensuring that the club has the resources to build for the future, including the removal of all acquisition debt. Our objective is to stabilise the Club and ultimately return Liverpool FC to its rightful place in English and European football, successfully competing for and winning trophies.
http://www.guardian.co.uk/football/2010/oct/06/liverpool-new-england-sports-ventures-statement

Hicks and Gillett have to sell. It was part of the debt restructuring with RBS back in April, along with the appointment of Martin Broughton as independent chairman. They (Hicks and Gillett, not the board) valued the club so high (600 million) only because they want to plunder Anfield before they go, but the board is under no obligation to accept their valuation. The real question is "What planet does Tom Hicks live on"? Why would anyone with half a brain buy LFC for 600 million now when they can wait a week and buy it for pretty much what NESV is offering today? Who does he think is going to come in and say "Sure, Tom, here's a few hundred million for your trouble, thanks so much, which way to the owner's bathroom?"