Anfield club in pivotal period of its history.
LIVERPOOL will avoid a nine-point penalty if they fall under bank ownership next month.
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. (News of the World)
Liverpool need very urgently to rid themselves of American pair Tom Hicks and George Gillett. They are like a cancer eating away at the Merseyside club and recent interest from potential investors and viable takeover talk needs to translate into actual stone cold offers if disaster is to be averted. The amount of debt the pair have sunk into the club is frankly criminal and whilst they claim to want to sell their way out of the club they are also hanging on to the dear end in the hopes they will get an unrealistic offer, an offer that may never come.
Luckily for the Anfield club they will, according to this source, avoid the resultant nine point penalty if the club does go under as RBS will then automatically be triggered into taking over the club itself, which may actually be a better thing all round as they could be more willing to accept real offers as opposed to waiting it out until a huge investor walks into town, something that is unlikely to happen given the lack of Champions League football to help sweeten the pot.
Since day one Hicks and Gillett have made promises they have not kept and more shockingly then attempted to lie their way out of said promises. The club have gone backwards during their regime and whilst some of the blame for that rests on former management and average performances from some of the players, a lions share rests on their heavily indebted shoulders for the manner in which they have unsettled a huge football club who now must hope that the coming weeks provide some closure to the whole fiasco.
There are reported interested parties from the middle east as well as interest from consortium’s closer to home but right now things have gotten to the point that ABGH (Anyone But Gillett and Hicks) will do. It is now definitely the case that it is better the devil you DON’T know than the one you do.