Friday, October 15, 2010

Liverpool change hands after 'penalty shoot-out'

Published>Fri, Oct 15 10 11:16 PM

Liverpool's long-running takeover saga ended on Friday when the owners of Major League Baseball's Boston Red Sox completed their 300 million pound ($480.8 million) purchase of the Premier League club.

New England Sports Ventures said the deal, welcomed by jubilant fans but dismissed as an "epic swindle" by ousted co-owners George Gillett and Tom Hicks, had eliminated all of the acquisition debt placed on the club by the American pair.

In what could be a major boost for embattled manager Roy Hodgson, the new owners added that the club's debt servicing obligations had been slashed from 25 to 30 million pounds a year to two to three.

However, Liverpool still face the prospect of a protracted legal battle after lawyers for Hicks and Gillett vowed to fight on "with all of their legal energies" in a claim for damages of $1.6 billion.

"As any Liverpool fan knows, the most nerve-racking way to win is the penalty shootout," chairman Martin Broughton told a throng of reporters gathered outside the headquarters of a London law firm as he announced the change of ownership.

"But in the end, as long as you get the right result, it's worth the wait. We got the right result."

The day had started with a breakthrough in Texas, where a judge lifted a restraining order preventing NESV from going ahead with the deal.

It ended with new owner John W Henry declaring himself proud and humbled with his purchase, telling the fans what they wanted to hear.

"We are here to win, we have a tradition of winning," he assured reporters. "We have the second highest spending club in Major League Baseball and we will do what is necessary."

NIGHTMARE START

Liverpool, the five-times European champions who are one of England's greatest clubs with a brand of global stature, have had a nightmare start to the season and are currently 18th in the 20-strong league with just six points from seven matches.

Speaking before the deal was confirmed, Hodgson said a cloud had been lifted.

"It's a very good day for the club," he told a packed news conference at the club's training ground. "It's a relief ... it's been a very difficult couple of weeks ... We've had to live through that bad time."

Friday's outcome, desired by so many fans, will be a relief ahead of Sunday's local derby with Everton, a hugely important game given the club's precarious league position.

The amount the former co-owners have vowed to pursue in damages was scoffed at by some commentators.

"They're hoping for a settlement," said Robert Boland, professor of sports management at New York University.

"You never sue for a little. Every bumper tap in New York City is worth $2 million in damages. You always put the biggest number you possibly could imagine for damages on the lawsuit to start."

A statement also said that the pair had offered to pay outstanding debt to the Royal Bank of Scotland (RBS) but that attempt was rejected. A spokesman for the bank was not immediately available for comment.

"This outcome not only devalues the club but it also will result in long-term uncertainty for the fans, players and everyone who loves this sport because all legal recourses will be pursued," said their Texas lawyer Steve Stodghill in a statement.


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