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Liverpool Could Face Nine-Point Deduction If Sale To Henry Is Blocked - Rbs To Take Over

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http://www.guardian.co.uk/football/2010/oct/08/liverpool-nine-point-deduction-sale

The Premier League is likely to deduct nine points from Liverpool if their chairman, Martin Broughton, fails in his court action next week to force the sale of the club and Liverpool are instead put into administration by their main creditor, the Royal Bank of Scotland.

It was previously thought the penalty would not be imposed because Liverpool's holding company, owned jointly by the Americans Tom Hicks and George Gillett, would be the one defaulting on the £237m owed to RBS, rather than the club. However it emerged today that the Premier League's chief executive, Richard Scudamore, believes that according to the league's rules the holding company's administration cannot be entirely separated from the club, and the nine-point penalty would apply.

That would be an enormous blow to Liverpool's season and future prospects, plunging the team immediately into a genuine relegation battle. If it were to happen next Friday, 15 October, the due date for repaying RBS, Liverpool would be reduced to minus three points, eight behind the two bottom clubs, Wolves and West Ham, nine from safety.

That would be severely damaging for a club still aspiring to be in the top four, not at the bottom, making it almost certain, at the very least, that Liverpool would not qualify for Champions League football for the second successive season.

Concerns have also been expressed in some quarters that the penalty could discourage New England Sports Ventures, the Boston Red Sox owners, from proceeding to buy the club, a takeover that was approved in principle by the Premier League today. NESV have agreed with Broughton to pay off the £200m owed to RBS, which Hicks and Gillett borrowed to buy the club in the first place in February 2007, but administration and a points penalty may force new owners to spend more than they want on new players in January to ensure Premier League survival.

An NESV source offered reassurance today that the investors, led by the majority shareholder, John W Henry, remain committed, even if Broughton's court case, opposed by Hicks and Gillett, fails and administration and the points penalty follow. The US investors have been aware of that possibility throughout their negotiations, according to the source, and the likelihood of it being imposed has not caused Henry to have second thoughts.

Looks likely that the taxpayer is going to own a football club by next weekend.

In the past it's been muted that Liverpool would avoid the points deduction, it doesn't look like they will avoid them. For the taxpayer this could mean we won't get £200m for it.

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http://www.guardian.co.uk/football/2010/oct/08/liverpool-nine-point-deduction-sale

Looks likely that the taxpayer is going to own a football club by next weekend.

In the past it's been muted that Liverpool would avoid the points deduction, it doesn't look like they will avoid them. For the taxpayer this could mean we won't get £200m for it.

If it does go down that path (tax payer bailout), I suggest we rename it to Kingdom United, and change the home strip to a blue shirt and yellow shorts.

:P

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If it does go down that path (tax payer bailout), I suggest we rename it to Kingdom United, and change the home strip to a blue shirt and yellow shorts.

:P

Does this mean the BOE will be funding our transfers with freshly printed £'s?

Great...we'll have Messi, Maicon, Alonso and Villa...and that's just TB1 (Transfer binge). :D

Maybe the public could get to vote on each player to sign..."We're all in this together"'!

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It's one thing to take legal action blocking the sale of a business but entirely another to do so over the sale of a football club.

Football clubs don't have customers, they have supporters - something these two Americans failed to understand. Infuriating customers is one thing but you inflame supporters and you put your own life at risk.

As for the comment hoping Liverpool are relegated, Man United fans shouldn't forget just how precarious their own club's financial position is.

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I seem to remember Southampton trying the same scam and they got the 9 point deduction...and quite rightly so.

It's about time paying off y0ur debts was back in fashion

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Blackpool will be happy if they get the deduction it will assist their chances in staying up...... :lol:

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It's one thing to take legal action blocking the sale of a business but entirely another to do so over the sale of a football club.

Football clubs don't have customers, they have supporters - something these two Americans failed to understand. Infuriating customers is one thing but you inflame supporters and you put your own life at risk.

As for the comment hoping Liverpool are relegated, Man United fans shouldn't forget just how precarious their own club's financial position is.

Indeed.

That's why Ferguson keeps scraping one more season out of Giggs and Scholes. He's got no money to work with.

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That's why Ferguson keeps scraping one more season out of Giggs and Scholes. He's got no money to work with.

Someone rich will always buy Man U, can't see them ever goign itno administration

As regards Liverpool, it would be a disgrace if they avoid a penalty for administration through some fancy corporate structure

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Someone rich will always buy Man U, can't see them ever goign itno administration

As regards Liverpool, it would be a disgrace if they avoid a penalty for administration through some fancy corporate structure

That may be true, but only as long as Ferguson remains at the club. When he's gone, it'll be a different story.

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Oh man that's a bit harsh...You're not really Wayne Rooney or Sir Alex Ferguson, are you?

Well it was spelt right so that rules out Rooney :)

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I saw 4 Liverpool players kicking about with a hedgehog yesterday. I was going to go over and stop it them, then the hedgehog went 1 - 0 up !

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That may be true, but only as long as Ferguson remains at the club. When he's gone, it'll be a different story.

Very good point.

It's easy to forget how rubbish they were before Fergie, with him being there so long. He's managed to keep them on top the last three years or so whilst spending relatively little money.

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It's one thing to take legal action blocking the sale of a business but entirely another to do so over the sale of a football club.

Football clubs don't have customers, they have supporters - something these two Americans failed to understand. Infuriating customers is one thing but you inflame supporters and you put your own life at risk.

As for the comment hoping Liverpool are relegated, Man United fans shouldn't forget just how precarious their own club's financial position is.

United's operational profits are c. £100m.

In other words as a football club they're making money hand over fist, have costs well under control and are in no way comparable to the meltdown at Anfailed.

I'd agree wholeheartedly that they would be in an even better position with more equity capital and much lower debt . i.e. back to the successful pre-Glazer, pre-05 position. But you're really comparing a successful football club with a bankrupt relegation prospect. There is no comparison. It is of course a scandal that Glazer has cost the club £40m in losses on buying out interest rate swaps, £20m on forex losses (on the $bonds) and c. £45m p.a. in bond interest, plus a further £220m in Glazers personal PIK notes rolling at 16.25% p.a. until 2017.

http://andersred.blo...0910-first.html

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It's all going to end in tears.

If this Henry guy takes over how on earth is he going to compete with some of the wealthiest people in world at Citeh and Chelski. And in the interim Hicks and Gilette will be chasing Liverpool through the courts till the end of their days as would anyone.

It's not enought to clear the debt either, he will need to pun in hundreds of million just to get back challenging for the Champions league places.

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Just a quick post to correct an earlier posters disinformation re Manchester United.

Total Turnover => £286.4m

Total Costs => £382.7m

Total Loss => £83.6m

The entire English Premier League, if not all of football is going bust, if not already insolvent.

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You shit on the carpet, you piss in the bath, you finger your granny and think it's a laugh, in your Liverpool slums.

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Very good point.

It's easy to forget how rubbish they were before Fergie, with him being there so long. He's managed to keep them on top the last three years or so whilst spending relatively little money.

The only other person who could possibly keep Man Utd together would be Mourinho. The only trouble with him is that he likes bringing his own players in, which would cost them a fortune...Money they don't have. He doesn't overly do much for youth. He just builds a team that will guarantee instant success. He'd then be off in three years, effectively leaving a few journeymen behind..

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Just a quick post to correct an earlier posters disinformation re Manchester United.

Total Turnover => £286.4m

Total Costs => £382.7m

Total Loss => £83.6m

The entire English Premier League, if not all of football is going bust, if not already insolvent.

+1

BBC Panorama Into the Red with Manchester United

Hundreds of comments on the BBC website.

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  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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