The US owners of the Boston Red Sox finally signed a deal to buy Liverpool FC last week after a legal stand-off. The £300m deal will allow the club to pay back its debts to RBS, its main creditor.
The US owners of the Boston Red Sox finally signed a deal to buy Liverpool FC last week after a legal stand-off. The £300m deal will allow the club to pay back its debts to RBS, its main creditor.
Tom Hicks and George Gillett, the club’s previous owners, claim the club’s value is closer to £600m and tried to stop the sale by replacing board members. When RBS obtained an injunction in the High Court to prevent this, the pair obtained an injunctive action from a Texas court. RBS then secured a declaration from Mr Justice Floyd that the Texas proceedings had no locus standi. Hicks and Gillett withdrew the Texas order the following day.
However, Hicks and Gillett are reported to be considering bringing a claim in damages for up to £1.6bn.
Andrew Nixon, associate, Thomas Eggar Sports Group, says: “Hicks and Gillett will seek to argue that the board failed to discharge its fiduciary duties to the shareholders by apparently refusing to look at other bids for the football club. They will also claim that the deal undervalues the asset, and by selling for £300m fails to secure the best possible price. To succeed, Hicks and Gillett will not only have to show that the board acted with blinkers but that the club is worth significantly more than £300m. Read more @ www.newlawjournal.co.uk
