Liverpool FC owners lose court battle
Liverpool football club closer to a prompt sale as the High Court rules against the club’s owners and backs members’ right to negotiate a deal – a ruling welcomed by fans writes Keme Nzerem.
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The club’s current American owners Tom Hicks and George Gillett asked a judge to delay the hearing of an application by creditors Royal Bank of Scotland (RBS) for mandatory orders paving the way for a possible sale this week.
The plea was rejected by Mr Justice Floyd, sitting at the High Court in London.
At RBS’s request, the judge imposed injunctions on the two men requiring them to restore the original constitutions of the companies and managing directors.
An appeal was also rejected. The judge said it would be “inappropriate in the circumstances” for him to grant leave, and they would have to apply to the appeal court for permission.
This removes the final stumbling block to a £300m takeover by New England Sports Ventures (NESV), the owner of the Boston Red Sox, which will see RBS recoup its original £237m loan to Mr Hicks and Mr Gillett when they bought the club in March 2007.
The ownership battle ended up in court after the owners tried to sack members of the board last week in a last ditch bid to keep control of the club.
Channel 4 News reporter Keme Nzerem writes from the High Court:
“As the judgement was read out there were broad smiles on the Liverpool benches – while the Hicks/Gillett team sighed with resignation.
“The club’s chairman Martin Broughton emerged to a huge cheer as the judgement was delivered – has this ever happened before at the high court?”
Mr Justice Floyd rejected applications by the owners for an injunction to halt the sale negotiations until they had attended a board meeting and there be further discussions over any sale agreement.
“I am not prepared to grant any relief. If I did it would risk stopping the sale and purchase agreement going ahead.”
He said this would result in potential serious damage to the club and RBS.
Chairman Martin Broughton says the board will now meet to discuss the future options of the club.
Red Sox owner John Henry today thanked fans for their support via Twitter.
“Well done Martin, Christian & Ian. Well done RBS. Well done supporters!” the prospective buyer tweeted.
Earlier, whilst greeting fans before the High Court decision Mr Henry tweeted: “There have been enough twists and turns. Hopefully all gets sorted soon; LFC moves forward.”
Keith Oliver, a senior partner with solicitors Peters & Peters, who are acting for Mr Hicks and Mr Gillett, said an appeal was not being ruled out.
Mr Oliver said: “We are obviously disappointed with the judge’s decision.
“Mr Hicks and Mr Gillett will now be considering their next steps, and that will include whether to make an application to the court of appeal.”