The 300 million sale of Liverpool Football Club was finally completed this week as New England Sports Ventures (NESV) replaced former owners Tom Hicks and George Gillette. NESV’s other ventures include Boston’s highly successful basketball team the Red Sox. All acquisition debts have been written off, significantly reducing the clubs debts from a total of 30 million a year to just 3 million.
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.
Hicks and Gillette attempted to block the RBS’s sale of the club to NESV by obtaining a restraining order from a Texas court, but this was lifted to allow the sale. As the process went on it became clear that the owners priority was to maximise returns for themselves. They fell out with independent members of the board whose aim was to secure the best deal for the long-term future of Liverpool FC. They will only receive a small amount of the sales proceeds due to the massive debts owed by the club. Hicks and Gillette have now announced their intentions 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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