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Posts Tagged ‘broughton’

• Ex-Liverpool owner has barring action partially lifted
• American claims he lost £140m in sale of club to NESV

The Former Liverpool owner Tom Hicks has been given the chance to launch massive damages claims over the sale of the Premier League club after orders barring action in the US were partially lifted by a high court judge in London.

Hicks wanted Mr Justice Floyd to lift anti-suit orders which prevented him taking action in the Texas courts to halt the deal in which he claims he lost £140m.

The judge dismissed that application but varied the anti-suit injunction to allow Hicks to make applications in the US in support of any proceedings in this country if he gives seven days notice to the parties he is suing, with Royal Bank of Scotland foremost among that group.

Hicks believes he was the victim of an “epic swindle” when the club was sold against his wishes to New England Sports Ventures for £300m.

Mr Justice Floyd also dismissed an application to ’strike out or stay claims’ by Sir Martin Broughton, the former chairman of the club, seeking damages against Hicks for his actions while owner.

NESV’s application to be allowed to join the Broughton action was granted by the judge.

NESV bought the club after repaying a £237 million loan Mr Hicks and his former partner George Gillett took out with the Royal Bank of Scotland and Wells Fargo and Co.

Tom HicksLiverpoolguardian.co.uk

• Gillett and Hicks stand to lose £144m from the sale
• Liverpool ‘won’t lose points under administration’

Why is the board attempting to sell the club against the wishes of the owners?

Because under the terms of a refinancing agreement in April with the Royal Bank of Scotland, which is owed the majority of £237m, the club were put up for sale and Martin Broughton installed as independent chairman. But Tom Hicks and George Gillett have consistently sought to frustrate his efforts.

Why are Hicks and Gillett resisting the takeover?

Because the co-owners believe the £300m offered by New England Sports Ventures (NESV) and accepted by Broughton undervalues the club and will not give them a profit. In fact, they will be staring at a £144.4m loss in the form of the loans that they extended to the club’s holding company via a company registered in the Cayman Islands.

What can they do?

Hicks has failed in a last-ditch bid to refinance the £237m loan and Tuesday night’s move to oust two members of the board – the managing director, Christian Purslow, and the commercial director, Ian Ayre – and replace them with their own directors was an attempt to regain control. It was resisted by Broughton, secure in the knowledge that the pair signed an agreement that gave him final say on the make-up of the board and promised not to interfere in the sale process. The only avenue left is next week’s court challenge on the legality of the move to sell the club against the wishes of the shareholders.

Why is Broughton convinced that he will be able to complete the sale?

He believes he has shown that the club have been extensively marketed and that the NESV offer is the best one on the table. He has taken extensive legal advice and believes the agreements signed by Hicks and Gillett are binding. Today’s tour of the TV studios and the public statements were also partly an aggressive attempt to outflank the co-owners.

What if Hicks and Gillett win?

Even if they win next week’s legal challenge – which most experts consider a remote possibility – RBS will still be able to put the club into administration on 15 October, the refinancing deadline. The bank could then take control of the club and immediately sell it – quite possibly to NESV. The co-owners are effectively caught in a pincer movement between the RBS deadline and the sale process.

Will the deal leave Liverpool debt-free?

Essentially, yes. The deal will involve the banks being repaid £200m, £40m going to cover other liabilities and £60m clearing debt relating to the proposed new ground in Stanley Park. That will leave a £37m working overdraft with RBS and a facility related to the new stadium. But although it is understood that NESV will pay for the acquisition with cash raised from its own shareholders, Broughton could not confirm whether it would also take on additional debt to do so.

Liverpoolguardian.co.uk

The key players at the heart of the struggle to sell the club to John W Henry’s New England Sports Ventures group

Tom Hicks co-owner

The 63-year-old Texan businessman owns 50% of the club. The most unpopular and vocal of the co-owners whose son was removed from the board for sending a supporter an abusive email.

George Gillett co-owner

Has not coped well with the anger of fans directed towards him and his family and has had a fractious relationship with Hicks having reportedly been keen to sell his shares in 2008.

Martin Broughton chairman

A lifelong Chelsea fan and chairman of British Airways, Broughton was appointed as the club’s independent chairman in April this year with the task of overseeing the sale process.

Christian Purslow managing director

Harvard-educated, he replaced Rick Parry in June 2009 and together with Ian Ayre and Broughton, he outvoted Hicks and Gillett in favour of selling the club to John W Henry. The American co-owners tried to replace him on the board.

Ian Ayre commercial director

Appointed by the club’s former chief executive Rick Parry in 2007 he helped to seal a four-year sponsorship deal with Standard Chartered Bank and, like Purslow, he was one of the board members whom Hicks and Gillett tried to oust.

LiverpoolGregg Roughleyguardian.co.uk