Hicks and Gillett, probably the two most hated figures in Liverpool right now (and maybe even across the globe, considering Liverpool’s fan base) are trying to keep control of a club that clearly doesn’t want them anymore.
Yesterday, two bids came in for Liverpool FC. One allegedly from New England Sports Ventures (the same company that owns the Boston Red Sox) and another one from Asia. The club have declared both these bids as “excellent financial offers”.
Meanwhile during yesterday’s board meeting, the American owners Hicks and Gillett tried to remove two of the clubs board members – Commercial Director Ian Ayre and Managing Director Christian Purslow. Chairman Martin Broughton, brought in to oversee the sale of the club, has appointed the legal firm Slaughter & May to prove the illegality of this decision under the Companies Act.
The owners seek to replace these two board members with Mack Hicks (Hicks’ son) and Lori Kay McCutcheon, a Vice President at Hicks’ Holdings.
The meeting was called to discuss the two bids that were received by the club. And after the meeting, a joint statement from Hicks and Gillett was received
“In April, we confirmed our agreement to sell Liverpool Football Club, and appointed a new chairman and advisers to oversee the process.
At that time we and Martin Broughton stated our commitment to finding the right buyer for LFC, one that could support and sustain the club in the future. We remain committed to that goal.
The owners have invested more than $270 million in cash into the club, and during their tenure revenues have nearly doubled, investment in players has increased and the club is one of the most profitable in the EPL.
As such, the board has been presented with offers that we believe dramatically undervalue the club.
To be clear, there is no change in our commitment to finding a buyer for Liverpool Football Club at a fair price that reflects the very significant investment we’ve made.
We will however, resist any attempt to sell the club without due process or agreement by the owners.”
Clearly the American owners are not happy with the valuation of the two bids received, and if the legal team appointed by Broughton fails to prove that their removal of the Managing Director and the Commercial Director is illegal, then Americans will have no problem blocking the two bids.
October 15th is set as the deadline for the repayment of the 282 million pounds loans from Royal Bank of Scotland and Wachovia.
The Liverpool FC statement after the meeting was as follows –
“The Board of Directors have received two excellent financial offers to buy the club that would repay all its long-term debt. A board meeting was called today to review these bids and approve a sale. Shortly prior to the meeting, the owners – Tom Hicks and George Gillett – sought to remove Managing Director Christian Purslow and Commercial Director Ian Ayre from the Board, seeking to replace them with Mack Hicks and Lori Kay McCutcheon.
“This matter is now subject to legal review and a further announcement will be made in due course.
“Meanwhile Martin Broughton, Christian Purslow and Ian Ayre continue to explore every possible route to achieving a sale of the Club at the earliest opportunity.”
Liverpool fans meanwhile stepped up efforts to oust the Americans from Anfield with the release of the video “Dear Mr Hicks“