Liverpool FC Sell To Red Sox
Oct 29th, 2010 Posted in investment | no comment »New England Sports Ventures (NESV) successfully completed their takeover bid of Liverpool Football Club earlier this week. The high profile company, owner of the Boston Red Sox, had faced a long and expensive legal battle with previous owners George Gillette and Tom Hicks to take control of the club. The 300 million sale has caused fans to rejoice as the clubs massive debts have been written off.
Former owners George Gillette and Tom Hicks took out a loan from the Royal Bank of Scotland to purchase the club in 2007 which has since caused a series of crises. The club had till 15 October this year to repay debts or face being taken as an asset by the bank. RBS’s position on the loan had deterred potential buyers from placing a formal bid and to make matters worse Hicks and Gillette refused to budge on their massive 800 million asking price for the club.
When NESV began talks with RBS over the sale of the club, Hicks and Gillette immediately enlisted the help of a Texas court to block the sale. Due to UK regulations this was lifted this week. What has become apparent over the past years is the pair’s blatant disregard for the future of the club as they desperately attempt to line their own pockets. They were reluctant to sell to NESV as it became apparent they would make an extremely small return on the sale. They are not launching a legal battle against the bank to claim $1.6 billion in compensation.
Meanwhile, Liverpool fans are delighted at the takeover and are eagerly awaiting improvements at Anfield. NESV are also looking into moving the club to a larger and more modern ground. Primary owner, John W. Henry announced the company’s commitment to winning, and promised to return Liverpool FC “to greatness on and off the field for the long-term”.
However, Liverpool’s performance showed no signs of improving on Sunday as they were beaten 2-0 by rivals Everton at the Merseyside Derby match.
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