Soccer: Sale delay as Liverpool owners head to court

The buyout that could boost a flagging soccer giant is nearly done. Nick Harris looks at the deal.

So Liverpool have been sold to the owners of the Boston Red Sox. Is it a done deal?

Not yet. The deal has been agreed in principle and in detail between Liverpool's chairman Martin Broughton and by the New England Sports Ventures firm headed by John W Henry, but it is subject to a legal challenge by Liverpool's incumbent American owners, Tom Hicks and George Gillett. NESV has tabled a bid worth £300 million ($633 million) that will essentially wipe out most of Liverpool's debt, but can't get their hands on Liverpool until Hicks' and Gillett's legal challenge is dealt with.

What are Hicks and Gillett arguing about?

They say Broughton had no right to agree a sale which will oust them with combined losses of £144 million. They argue they sacked two of Broughton's fellow board members, before they and Broughton could vote 3-2 against them to sell the club. They will challenge in the High Court Broughton's right to have sold the club on that 3-2 vote.

Which side will win in the High Court?

Broughton says that legally only he had the power to sack board members, thus the 3-2 vote of sale to NESV was valid. Hicks and Gillett will argue Liverpool was their club and it cannot be sold beneath them. But Hicks' and Gillett's case is likely to be undermined because according to Broughton, they effectively signed away control when he was appointed this year, specifically to find a buyer for the club and to appease the Royal Bank of Scotland, to whom Hicks and Gillett owe £237 million.

What if Broughton/Liverpool win the case?

NESV will quickly take control of Liverpool and begin the process of trying to turn around the club.

And what if the Broughton camp loses?

The decision to sell to NESV will be nullified. Hicks and Gillett will continue to try to find £300 million to pay off RBS before the October 15 deadline.

If they fail, what happens next?

RBS will call in their loans, Hicks and Gillett will be unable to pay, the club ownership will transfer briefly to RBS, Liverpool could enter technical administration and RBS will seek a buyer - knowing there is one in place in the form of NESV.

Will Liverpool be docked nine points by the Premier League for entering administration?

No, because they'll only be in administration for technical reasons and NESV will probably buy the club within a day or two from RBS.

- INDEPENDENT