LFC, NESV, Red Sox – A Fans View

October 23, 2010 by 2 Comments

As Liverpool start life under the ownership of John Henry’s New England Sports Ventures (NESV), we have been catching up with a few Reds recently, whose love also extends to that of the Boston Red Sox baseball team, another jewel in the NESV portfolio. Under NESV ownership, the Red Sox saw World series wins in 2004 and 2007 end a run of 86 years of waiting.

LFCTV recently released a commercial overview on their new owners but we caught up with LFC & Red Sox fans Eleanor Kennedy and Stephen Brandt to get their views on what life could be like at Anfield moving forward.

What similarities do you see between LFC and the Red Sox at the time NESV came in to take over ownership?

Eleanor: I can honestly see many similarities between LFC and the Red Sox in many ways. First of all, both sets of supporters can arguably be referred to as the best in their sport. Since 2003, Fenway Park has had a sellout every single game. Both sets of fans are very passionate about their teams and want nothing but the best players and the best efforts coming from their players. I suppose an example for the Red Sox would be Mike Lowell, he was traded to the Red Sox in 2006, in 2007 he was crowned World Series MVP and retired at the end of the last season. The Red Sox held a “Thanks Mike” day to honour his efforts. That shows the respect John W. Henry and Tom Werner have for their players. Comebacks are also in both history books. On route to winning the World Series in 2004, the Red Sox pulled a miracle comeback, being down 3 games to none against the rival Yankees, the Red Sox won 4 games in a row to win the AL. And we all know Istanbul 2005! Entering the 2004 season the Red Sox hadn’t won a World Series in 86 years. It has been 20 years since Liverpool last won the league, obviously not as long but long enough. The owners will have experience in dealing with these areas. The season ended, Boston failed to make the postseason. Their season was a very difficult and frustrating one as injury after injury came up on the best Red Sox players, for example Dustin Pedroia or Kevin Youkilis, the heart of the team. This experience will most likely help the owners this year with LFC. Overall both clubs are very historic and passionate.

Stephen: Well let’s look at it this way, both teams are simply legendary in their sport. Boston isn’t Liverpool, but as far as importance to the game, it is the same. The Red Sox hadn’t won a title in almost 90 years and they had a  manager who just couldn’t manage (Read Grady Little v Pedro Martinez).

How long, from the point of takeover, was it before noticeable progressive changes in a fan’s view were made and what were they?

Eleanor: Immediately after John W. Henry bought the Red Sox, an impact was made. Just 2 years after the sale the Red Sox (as I pointed out above) won the World Series for the first time in 86 years, breaking the curse of the Bambino as was known. A couple weeks after the owners took over they replaced manager manager Joe Kerrigan with Grady Little, and before the 2004 season current manager Terry Francona was hired. A move which to this day is a pleaser! Also current general manager Theo Epstein was hired in 2003 (only 28 at the time). This shows that the owners are capable of making decisions that are long lasting.

Stephen: Within two years. Henry got them two World Series Title pretty quickly, after buying the Red Sox in 2002 they went on to win their first World Series in 2004.

Fenway Park is an iconic stadium in America’s Baseball history, after careful review NESV opted to refurbish instead of replace it. How extensive was the overhaul and how well did this show NESV’s understanding of what was in the best interests of the Red Sox?

Eleanor: I believe the owners made an excellent decision in refurbishing Fenway Park rather than knock down the iconic stadium to build a new one with zero history. Part of NESV’s decision to refurbish rather than build was the fact that in 2012, Fenway Park celebrates its 100th year anniversary. Because of their decision to keep Fenway Park around, not just Red Sox fans, but MLB fans get to celebrate this. This was a very clever decision by the owners. I don’t think any Red Sox fan wants to see “America’s beloved ballpark” knocked down to nothing. This shows that the owner not only care about the history of their team, but the fans too.

Stephen: Here’s the thing, You can’t replace or demolish Fenway, it’s a national moneument. Henry, if he wanted to, couldn’t legally tear it down. He’s improved a lot of it, but the foundation is there. They won’t replace something if it’s not in the best interest of the fans.

There is a general consensus out there that NESV are exceptional owners at the Red Sox, backed passionately by the fans who they listen to. This is something that has been missing at Liverpool for some years now but how true is this in your opinion at the Red Sox?

Eleanor: I haven’t been a Sox fan that long but from my time as one it is definitely evident that NESV are exceptional owners and do listen to the fans. It all comes down to the success in Boston since the owners took over. You just look at our playoff record, 2 World Series’, and as pointed out above their plans to refurbish Fenway. They are willing to go hunting for the best players and are not afraid to let go of ones that are nothing but a bad distraction to teammates i.e Manny Ramirez who despite being one of the best players in baseball, obviously wasn’t giving 100% and wanted out of Boston. In my opinion this backs this consensus.

Stephen: Fans in America, aren’t as rabid as football fans. The only thing the Red Sox fans wanted, was to win the World Series, and Henry has given them two World Series Rings. That’s all that matters. I figure if the fans tell Henry, we want to become what we were in the  80′s, he would make it possible.

NESV replaced their manager within a week of their takeover and made significant changes to the playing staff. How good were the decisions that they made from the off in these areas and were they strongly publicly supported?

Eleanor: I pointed out above that the owners have made decisions that are long lasting. They hired manager Terry Francona who to this day could be considered one of the best in baseball. Also they hired general manager Theo Epstein who has been a stronghold in the Red Sox front office in dealing with players and bringing the best players into Boston. Obviously mistakes have been made but what team can say they haven’t. The whole backroom staff today are very good, from pitching coach to catching coach and beyond. They have brought in people with a true knowledge of baseball.

Stephen: You had to get rid of Grady Little. Great man, been in the game long time, well thought of. Strangely, I’ve heard that about a certain manager wearing red right now.  They’ve kept the new manager since, then again it’s easy when you win 2 World Series. They will only get rid of players or staff if they are hurting the image/winning chances. They won’t sell a player just because it’s cool. Henry will study the game more than any owner, I really recommend a read of the book “Moneyball”, it’s about them really.

NESV have opted for an “actions speaks louder than words” strategy at Anfield which is wise to a degree but at the Red Sox they announced an early 5 point plan of change. Do you they have opted not do something similar because of the previous H&G failings on their promises, or because of differences in American and UK culture and the sports of course, also being different?

Eleanor: I believe the owners went for an “actions speak louder than words” strategy because of the state the previous owners left us in. Hicks and Gillett promised us things that never came and I believe that had Henry and Werner drew out a list of promises, Liverpool fans would have been cautious and would not have taken full trust in the owners. It was clever by the owners to do this as they were aware of this and wanted to send out a message to the fans that they understand what position we are in in terms of trust and that they owners realize they have to work for our trust. The more promises you make the more promises you are capable of breaking. You can draw up as many lists of promises as you want but it doesnt mean anything until you act on those and make them happen.

Stephen: American sports are only different in that they haven’t been around as long. Like in the UK, alot of owners make promises and don’t keep them. It’s almost second nature. They only are doing this to win, and win the fans. They aren’t concerned about their image, because their a bunch of white business men, who don’t need to see themselves. If they can make the team the best using the least amount of money (not that they don’t have it, because they do). Everything this ownership group will do, will be thought out, and researched. If there’s any chance of it not working, they won’t do it, they’re not cocky like other American Owners. Plus they are used to dealing with idiots to a degree in sports (Yankees owners are jerks, Mets ownership is laughable, and the rest of the league is not run well.) They know what won’t work, they studied this before doing it. A five point plan will seem to the UK as something stupid, but they would have followed it at LFC to the bone.

John Henry and Tom Werner are perceived to be “winners” something they advocate as a strength of NESV. Was it very clear early on that NESV had made their investment very much with a passion for the sport and the club as well as a commercial interest?

Eleanor: I think NESV are the type of owners that take a passion in what they invest in. Obviously everyone invests in something looking for a profit but I honestly don’t believe Henry and Werner will be the type that JUST invest in something for the money. I don’t think that had they zero interest in LFC or the sport they would have bought us. They are plenty busy with the Red Sox and other New England deals. I think this shows that they do care about our well being, not just because it will effect them financially but because they really do have an interest in Liverpool Football Club.

Stephen: I can’t say it anymore than this, NESV is the best to happen to LFC since Kenny came from Celtic. They wouldn’t have bought Leicester or Scunthrope, they buy clubs and business that have fans who love the team and will worship. Of all the ownership groups out there, which could buy the club, NESV is the best thing to happen. They’ll make the club right. It wont be overnight, but top four finishes and Cup wins will be coming. It’s not going to be the seventies and eighties again, but LFC will be back. NESV will bring back the legends, and you’ll also have a true American audience now.

You can follow Eleanor on Twitter at @hangingsox and Stephen at @kingkennyfanlfc


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    The Future Is Red, The Future Is NESV

    October 16, 2010 by 6 Comments

    John W Henry, the principal owner of New England Sports Ventures (NESV) and the Boston Red Sox baseball team is now also the proud owner of Liverpool Football Club.

    As expected the news early this morning was that the temporary restraining order obtained from the Texas court by Tom Hicks and George Gillett, preventing Liverpool FC from completing a sale of the club to NESV, would be lifted when the court re-opened in to ensure compliance with the High Court in the UK. This process when complete would allow New England Sports Ventures (NESV) to be able to complete the takeover process and satisfy the RBS debt on the club in what Tom Hicks has since referred to as an “epic swindle” by people that he trusted and believed to be loyal.

    Despite reports of Mill Financial approaching the Premier League to complete the “Director & Owners” test, an effort that was rejected as the Premier League would only enter dialogue with, and take direction from Liverpool Football Club on such a matter, at just after 420pm, it was confirmed by Martin Broughton that John W Henry and his NESV team were the new owners of the club. The saga likened to a penalty shootout by the Liverpool chairman as he stated ”As long as you get the right result, it’s worth the wait. We’ve got the right result.”

    As Martin Broughton introduced John Henry to the cameras, the Red Sox owner gave his commitment to listening to those around him as they settled in at the club as well as being happy to guarantee that the purchase of the club was not a  LBO “leveraged buy out”, three words that should make any football fan shudder with caution. As Liverpool fans welcome NESV into the fold, albeit with an element of caution and rightly so, hope deeper in the soul will be for sight of the same winning mentality and development that has seen Red Sox fans proud of the leadership that they are under.

    Christian Purslow expanded on just how convinced he was that Liverpool FC was now under the right control;

    “We’ve sorted out our financial issues once and for all and we can now get back to football,” he said.

    “It was incredibly civilised and it’s just a pleasure to work with people like Martin Broughton. We have the best lawyers in London…it was tranquillity.”

    “The most important thing is that NESV have cleared us of all the debts which, frankly, shouldn’t have been on the club in the first place.”

    “They’ve done so in a way which leads me to believe that they will learn the lessons of the past and approach the challenge of owning Liverpool Football Club in a way which I think our fans will judge over time and which I’m optimistic will prove to be a very positive improvement on what we’ve been through recently.”

    Liverpool can now look forward to a period of development and re-energisation under their new ownership, free of the acquisition debt that the previous American owners had burdened the club with to almost the point of administration. Liverpool FC staff and fans alike, may now find themselves starting to sleep a little easier at night and hope that todays success is emulated on the pitch in the form of results and improved commitment. First up, the short trip across Stanley Park to the home of rivals Everton on Sunday, of which John Henry will not be making an appearance, citing his preference to make his entry at Anfield.

    Liverpool fans can take great heart from their own unrelenting efforts to remove H&G from the club, which certainly has played its part over time. From the organisational efforts of the Spirit of Shankly Supporters Union, the Mike Jefferies You Tube Video through to awareness raising over social media as to the suffering of the club on all sides.

    You’ll Never Walk Alone is the heartbeat of Liverpool Football Club, a unity that doesn’t know how to quit, despite the trials and tribulations that are placed in front of it, it always moves on. Hicks and Gillett failed to embrace that almost religion, they couldn’t comprehend its values or the belief in it. That ignorance and arrogance of failing to understand people as well as their financial failings has now cost them to a level they could never have comprehended when they walked in the door. The song that those take hope and heart from, will now haunt them forever and rightly so.

    Image Source: Daylife


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      Broughton Still Confident Of NESV Sale

      October 15, 2010 by 3 Comments

      Liverpool chairman Martin Broughton continues to remain hopeful and reiterate to Liverpool fans to “keep the faith” as he hopes that the proposed takeover by New England Sports Ventures (NESV) will be completed on Friday, ahead of the weekend’s Merseyside derby. A match which could see a new owner in the form of John W Henry attending the game.

      Following two victories in court over present owners Tom Hicks and George Gillett, both Broughton and his team, as well as John Henry of NESV, who remains in England, await a verdict from the Texas court hearing, which was adjourned yesterday evening until later today. Martin Broughton spoke very briefly with SSN following the latest verdict given by Justice Floyd in their favour at the High Court.

      He commented; “Not yet, we’re still in court in Texas trying to get the temporary restraining order overturned. We still have to do that.” when asked if NESV were now indeed the new owners of the club as well as advising ”I think probably sometime tomorrow” in regards a likely completion date.

      “We’re nearly there. We’ll have to see, we’ve still got to take away the restraining order.”

      “Mr Henry (NESV) is still very committed. We’ve got lots of bidders who are very committed.”

      “My guess is we’ll have it done and he’ll be there, but we’ve got to get rid of this order first.”

      While this evening brings somewhat of a quiet night compared to recent events, the servers of the Guardian, Empire of the Kop, Anfield Road, This is Anfield and Twitter are probably grateful for the time to breathe. Meanwhile the excellent Dan Roan (BBC), Tariq Panja (Bloomberg), Owen Gibson/Steve Busfield/Sachin Nakrani (Guardian) and Bryan Swanson/Gary Cotterill (SSN), probably clocked a time Usain Bolt would have been proud of in heading to bed.

      Will October 15th bring an end to the madness?….


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        Hicks & Gillett Secure TRO From Texas Court To Slow Sale

        October 14, 2010 by 5 Comments

        John W Henry, the principal owner of New England Sports Ventures (NESV) and the Boston Red Sox baseball team continues to wait to become the proud owner of Liverpool Football Club.

        The highly regarded American businessman made a somewhat surprising appearance this evening as he arrived at 1 Bunhill Row, London, just before 8pm, the offices of Slaughter & May, who have been advising and handling the legal process for Liverpool’s board members Martin Broughton, Christian Purslow and Ian Ayre.

        Earlier in the day, following their victory at the High Court over Tom Hicks and George Gillett, Martin Broughton advised that a board meeting would take place this evening at 8pm to progress the sale of the club. The arrival of John Henry immediately suggested that process was even closer to conclusion than first expected.

        However as has been the case at many steps of both the Hicks & Gillett reign at the club as well as with the sale process itself, controversy lay just after 10pm, it was confirmed that the present American owners had filed a temporary restraining order (document here) with Judge Jim Jordan of the 160th District Court of Texas, to prevent the sale of the club at present. In addition to what they call an “epic swindle”, a term they should be familiar with from their own financial transactions, they also claim that they will sue Liverpool’s independent board of directors, RBS Plc who control the club’s debt and it’s prospective buyer in the form of John Henry’s New England Sports Ventures (NESV) for a total of $1.6bn (£1bn) in damages.

        The pair continue to cite that NESV’s offer to buy Liverpool is “hundreds of millions of dollars below true market value” and other alternative and suitable offers were “swept aside” and ignored by Martin Broughton.

        The statement issued by the pair is as follows:

        The owners of Liverpool Football Club today reported that a Texas State District Court has granted a temporary restraining order (TRO) enjoining the Board of Liverpool Football Club (LFC) from executing a sale of the Club to New England Sports Ventures (NESV). The court set a hearing date of October 25, 2010.The TRO request, signed by Judge Jim Jordan of the 160th District Court in Dallas, was part of a lawsuit filed today by the owners of LFC against Royal Bank of Scotland (RBS), Martin Broughton, Christian Purslow, Ian Ayre, NESV and Philip Nash. The lawsuit also seeks temporary and permanent injunctions, and damages totaling approximately $1.6 billion (over £1 billion).

        The suit lays out the defendants’ “epic swindle” in which they conspired to devise and execute a scheme to sell LFC to NESV at a price they know to be hundreds of millions of dollars below true market value (and well below Forbes magazine’s recent independent $822 million valuation of the club) – and below multiple expressions of interest and offers to buy either the club in its entirety or make minority investments (including Meriton and Mill Financial). It describes how the defendants excluded the owners from meetings, discussions and communications regarding the potential sale to NESV and interfered with efforts by the owners to obtain financing for Liverpool FC.

        The Club’s owners are represented by attorneys from the international law firm of Fish & Richardson.

        The following are some of the key points in the complaint, which details the roles of RBS and the other defendants, and also describes previously undisclosed offers to purchase LFC:

        “The Director Defendants were acting merely as pawns of RBS, wholly abdicating the fiduciary responsibilities that they owed in the sale.”

        “RBS has been complicit in this scheme with the Director Defendants. For example, in letters from RBS to potential investors obtained just within the past few days, RBS has informed investors that it will approve of a deal only if there is “no economic return to equity” for Messrs. Hicks and Gillett. In furtherance of this grand conspiracy, on information and belief, RBS has improperly used its influence as the club’s creditor and as a worldwide banking leader to prevent any transaction that would permit Messrs. Hicks and Gillett to recover any of their initial investment in the club, much less share in the substantial appreciation in the value of Liverpool FC that their investments have created.”

        “On or about October 4, 2010, Mr. Hicks received a letter of interest from a third potential purchaser represented by FBR Capital Markets (“FBR”), offering to purchase Liverpool FC for £375 to £400 million ($595 to $635 million). The letter informed Mr. Hicks that the potential purchaser would not need financing, possessed the funds to close the transaction, and intended to build a new stadium for Liverpool FC.”

        “Additionally, the Plaintiffs learned just days ago about another potential investor that made a similar offer in the £350 to £400 million range that was communicated to Defendant Broughton and another unnamed co-conspirator in late August. According to this investor, Mr. Broughton never responded to the offer. Moreover, when the purported sale to NESV was announced, this investor again contacted Mr. Broughton and informed him that the offer, which significantly exceeded the NESV offer, was still on the table. Again, Mr. Broughton brushed this offer aside without further discussion.”

        As the news broke that the TRO had been granted to the dismay of Liverpool fan’s who had started, with caution, to look to brighter days, questions reigned in as to the jurisdiction that a Texas Court could have in such a matter that had already been ruled on by the High Court in the UK. Whilst both NESV and RBS are believed to be respecting the TRO in order to protect their investments in the US and taking legal council on the situation, contact was made by Liverpool fans with the issuing Texan court which resulted in Judge Jim Jordan’s Facebook Page being removed and the courts telephone service becoming “unavailable”.

        Liverpool FC responded with a statement of their own in regards to the developments:

        “Following the successful conclusion of High Court proceedings today, the Boards of Directors of Kop Football and Kop Holdings met tonight and resolved to complete the sale of Liverpool FC to New England Sports Ventures.

        Regretably, Thomas Hicks and George Gillett have tonight obtained a Temporary Restraining Order from a Texas District Court against the independent directors, Royal Bank of Scotland PLC and NESV to prevent the transaction being completed.

        The independent directors consider the restraining order to be unwarranted and damaging and will move as swiftly as possible to seek to have it removed.

        A further statement will be made in due course.”

        The latest developments place RBS in a tight spot with both US interests to protect as well as the Hicks & Gillett debt to call in on Friday of this week, closure tonight would have provided them with 48hrs to conclude arrangements and avoid further conversations around entering the club into administration. The Liverpool FC board remain hopeful that via legal process they can have the TRO removed shortly, ahead of the October 25th Texas court date but in the meantime Hicks and Gillett potentially wriggle free for a couple of days more yet.


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          Peter Lim Again Urges Liverpool Board To Consider His Offer

          October 13, 2010 by 6 Comments

          Singapore businessman and billionaire Peter Lim, has once again urged the Liverpool FC board to consider his revised offer in the best interests of the club, ahead of the board meeting which is scheduled for 8pm this evening, once the LFC board has been reconstituted.

          Liverpool FC were granted the route to sell the club earlier this morning as alongside RBS they achieved a long awaited victory over present owners Tom Hicks and George Gillett. Although it is largely expected that this evening the club will move to ratify the sale to New England Sports Ventures following their existing signed and legally binding agreement, Lim continues to remain hopeful of some consideration towards him. Lim and his Meriton group had previously been believed to be the preferred bidder by the club apparently until as late as the final 24hrs before the announcement of an agreement being reached with NESV. Following the result in High Court today, many Liverpool fans have already moved to congratulate John Henry on the victory and what it will bring, wishing him every success for the future.

          During the course of yesterdays court drama, it was officially announced that Lim was prepared to further increase his all-cash offer purchase of the club and hoped that the club would at least listen to what his revised plans were. The Singaporean has been received with mixed opinion by Liverpool fans due to his Manchester United themed bars, public statements and the ways in which is bid could be construed as a lifeline to Tom Hicks. However his planned offer for the club of an all-cash purchase to completely remove debt from the club and invest in its future stadium and immediate squad development are also areas that may well have put him ahead for a large stage of the process in the eyes of the Liverpool board.

          It had also been reported that Lim’s lawyers the Wong Partnership, had provided a letter to the High Court detailing his “surprise” at the clubs voting decision, following being told his bid was both “superior and preferred”. It was alleged by Lim that his failure to take over the club was confirmed to him by text message, some reports also suggested that the businessman would consider legal action over the sales process.

          Lim commented on the situation following the court victory:

          “I welcome the decision of the court. The way is now clear for the board to sell the club. I have delivered my offer to the board and believe that my ownership represents the best option for the future of the club and its supporters.”

          “I hope that when the board is reconstituted tonight that it will not simply ratify a sale to NESV but will consider all the offers before them. I am asking the board to run a full and fair process that enables all of the offers to be considered on their merits before the future of the club is decided.”

          From the 1045am announcement this morning, all eyes will now turn to see developments at the club later tonight and if any further twist and turns remain. The road ahead now a lot clearer of the obstacles that until recently blighted its thoroughfare.


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            Justice Floyd Verdict: Hicks & Gillett Defeated by RBS

            October 13, 2010 by 3 Comments

            The High Court opened its doors this morning as Liverpool fans nervously waited for Justice Floyd to deliver his verdict, after a night of reflection, on yesterday’s dramatic events in the court room.

            That verdict came this morning to the elation of Liverpool fans, with Justice Floyd ruling in favour of RBS and Liverpool Football Club, and that the sale of the club to New England Sports Venture (NESV) and the actions of Martin Broughton were both valid and can now proceed. Confirmation on whether a process of appeal will be taken by the defeated Hicks & Gillett remains to be confirmed. Further news and expansion on the verdict as well as an official statement from the club are expected shortly.

            Lord Grabiner QC, leading the interests of Liverpool Football Club and Paul Girolami QC for Tom Hicks and George Gillett had put forward their claims, concerns and facts in Court 16 of the Royal Courts as Liverpool Football Club looked to learn whether the sale that it had agreed with NESV was indeed valid. With side plots of an improved bid for the club by Peter Lim’s Meriton Group coming in and also confirmed interest from Mill Financial, the news led to a flurry of media activity as experts and fans alike tried to guess all outcome eventualities and whether the club would avoid the administration process and a 9pt reduction in the Premier League.

            With confirmations yesterday from Paul Girolami QC that Hicks & Gillett admitted to a breach of the undertakings agreed with RBS in April 2010, but such a breach only occurred due to failures by Liverpool’s board to not properly consider alternative bids, that caused them to take the actions they did. While to many the case may have seemed relatively clear cut given the admissions, to others there were enough grounds to remain cautious and concerned.

            Those fears, following the decision and comments of of Justice Floyd, have been exorcised as Liverpool Football Club now looks forward to a life well away from the “slippery” characters of Hicks & Gillett and to new life under the control of John Henry and NESV. The sale can now be finalised but only time will tell if it was indeed the right decision by the club, actions will speak far louder than words.


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              In Search Of The Truth

              October 10, 2010 by 1 Comment

              Truth and honesty is something that has been missing at Anfield in recent years around the boardroom but despite it’s AWOL status, Liverpool fans never call off the search party.

              While “truth” heads off with “spades” and “promises” on their eternal mission to find the lost property box, Liverpool Football Club has the small matter of a probable court case to attend to, one that asks many more questions than the obvious one. Probable in the sense that communication is believed to be continuing behind the scenes amongst the warring factions, in an effort to avoid more public humiliation for the club and at least one side in the argument. However a High Court verdict it looks set to be, as to who is to own the club going forward, possibly after an appeal process is added to the mix as well.

              The Liverpool board voted 3-2 in favour of New England Sports Ventures ownership but even a vote failed to be the simplest of tasks. As with many areas involving the club at present, if you dig a little deeper or question the logic used, the picture blurs a little and the truth becomes a little bit harder to find. One of the main questions that the High Court are left to answer is who does the Liverpool board actually consist of to determine whether the vote on the sale process is valid or not? The Americans argue that Christian Purslow and Ian Ayre were replaced prior to the vote being cast by Mack Hicks and Lori Kay McCutcheon, whilst the Liverpool Chairman Martin Broughton confidently states this move was blocked and the vote result stands.

              It is no real surprise that an attempt was made by H&G to disrupt the board for voting alliance once an offer got to the point a decision was required, predictable in fact. The Americans were simply always going to try and hold out for a sizeable return on their investment whatever the fight required, “investment” in this case also remains looking for its own truth. But do the candidates wanted on the board tell another tale entirely?

              For Mack Hicks to be brought in to help fight his fathers corner, as a replacement for Ayre or Purslow that alone would have been enough to swing a vote 3-2 in their favour so why the need for McCutcheon from Hicks Holdings as well? That answer may well lie in the form of the more silent George Gillett. For a two person shift on the board, you would expect a 50/50 partnership to present a further candidate from each of their own ranks to protect their interests but this also is yet a different truth as a 50/50 partnership they may no longer be. Mill Financial, a division of Springfield Financial, with whom Gillett took out a $75 million loan in December 2008 using his 50% share as security and then defaulted on its repayment, have called it in. A further associate of Gillett on the board, therefore potentially worthless to Hicks and his objectives if Gillett’s own position is questionable.

              To summarise a Rory Smith of the Telegraph quote recently:

              “Broughton is trying to sell a club he does not own (but apparently has the power do to so) , Hicks is trying to hold on to a club he did not pay for and half of that club now belongs to a real estate company based in Arlington, Virginia, whose intentions are unknown” – its nice to keep things simple as they say.

              Whilst the intentions of Mill Financial, of whom Liverpool FC have spoken to, are logically to be no different than that of RBS, a mission to recoup significant funds, it does add a further dimension to the present situation. Whilst Martin Broughton will soon produce written evidence that his decision and methods were just, New England Sports Ventures wait patiently in the wings for developments, having already met with the Premier League and been deemed to pass their “Owners & Directors Test”. An improved test it maybe from recent ones but only time, commitment, investment and actions will signify if such a test is really passed or not to Liverpool fans who have only to vivid a memory of how little a statement of intent from a new owner can really mean.

              Whilst certain circles continue to opt for a more scaremongering angle to Liverpool’s future over the next couple of days, the prospects of a 9pt reduction and the club feeling the reality of an administration process, these are rightly not the focus of either Martin Broughton or Christian Purslow. Although care and caution need to be exercised, the whole playing field observed, focus on success in court should remain to be their focal point, a winning mentality in the mind, something that the club has been lacking in many quarters for longer than many would like to remember.

              The confidence that is broadcast by Liverpool’s senior management, as they decided to go toe to toe with its owners, simply needs to now show itself as some of the truth that has been so long sought to prevent an uproar of undermining, that would ask equally large questions of management understanding their position and roles at the club. Defeat is inconceivable for many more reasons than the obvious ones, the questions for fans that lie beyond those asked in front of the Judge’s bench.

              Should a successful verdict rightly follow for Liverpool FC, as its management team continue to present with vigor that it will. The debate will continue to rage as to whether NESV are indeed taking advice from the tarnished former Reds Chief Executive Rick Parry, whether the club is closer to having the best owners for its future as it looks to re-emerge from the darkness, or whether time dictates they were simply the best of what little was on offer at moment where time was running out.

              A boards vote to be verified that could determine the future of so many… a sale to be concluded or a process to be restarted… an administration process to be accepted as reality or loosely stated as never a real concern… a Merseyside derby to be won, drawn or lost. A week of decisions and impact awaits at Anfield, that wait shared by the club and fans alike, there will be no early viewing of that result or a leak of the outcome finding its way into the public domain like the Liverpool team sheet so easily does.

              Shankly famously offered “Some people think football is a matter of life and death. I assure you, it’s much more serious than that”, the stakes are indeed high at Anfield right now, arguably higher than they have ever been but it doesn’t make the mission ahead an impossible one. The truth that the fans seek, needs to also be met with some honest performances on the pitch, whether that is under the reign and tactics of Hodgson, Dalglish or anyone else, no High Court judge is required to confirm that. The future for Liverpool is both out of their hands at present and also in part, what they make it, positives can be taken even by those most pessimistic.

              If Tom Hicks had shown the same level of effort in developing the club, supporting it and progressing it from the first day he walked in the door, as he has in trying to refinance a debt way beyond his means and to hold onto a club whose fan’s despise every breath that he takes, this whole saga could have been a far fetched “what if” question instead of a reality.


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                Liverpool FC & The 9pts Risk Explained

                October 8, 2010 by 5 Comments

                Liverpool head to the High Court to try and validate the sale of the club via a declaratory judegement, the proof that the boards actions were valid. Led by a confident Chairman in Martin Broughton, they hope to complete the sale of the club swiftly and obtain Premier League approval for the purchase. In doing so however, they face both the stubbornness of “Dear Mr Tom Hicks” and his somewhat quieter partner in crime George Gillett… along with the risk of a Premier League 9 point Premier League reduction, should plan B be chosen to be adopted.

                Plan B comes in to play if for one reason or another the High Court decide that the board that voted 3-2 in favour of the sale of the club, was indeed not the board of the club at the time that vote was cast. The legal confirmation is sought as the board that cast the votes (For: Martin Broughton, Ian Ayre, Christian Purlow – Against: Tom Hicks & George Gillett), is cited by Tom Hicks and George Gillett as being invalid as they just prior to the votes being cast they replaced Ian Ayre & Christian Purslow with Mack Hicks & Lori McCutcheon, to control the voting process. An action that is deemed by Martin Broughton after consultation with solicitors Slaughter & May, who have provided guidance through the process, to be invalid, with himself being the only person to be able to sanction any changes to the board, of which he blocked.

                Plan B is a logical next step on the route to sale, should the Americans retain control of the club and this would need to come from the hand of RBS. At present H&G have £237m & above outstanding in debt to RBS in loans that they have so far been unable to refinance, this lies with Liverpool FC’s parent company “Kop Football (Holdings) Ltd”. The repayment deadline for these funds to RBS at present has 7 days remaining on it (October 15th) and RBS are likely to be exceptionally buoyed, that in the form of New England Sports Ventures (NESV), owners of the Boston Red Sox, they have a guaranteed method of payment of that debt which has spiraled out of control for H&G.

                For a sale to be forced through under these circumstances and to avoid further stalling on the recovery of their funds, the parent company Kop Football (Holdings) Ltd would need to be placed in to administration, should RBS opt to travel this route. Liverpool FC on its own, is both a profitable and solvent part of the portfolio thus would not go into administration in its own right and avoid a 9 point Premier League penalty. However, as the vehicle which owns the club (Kop Football Holdings Ltd) could be deemed by the Premier League rules as being solely concerned with the ownership of Liverpool and football-related matters, it could technically trigger the nine-point penalty rule. Should the parent company have had other financial interests, such as non football activities then such a rule would not technically be invoked as was seen in the the instance of West Ham when Icelandic bank Straumur collapsed. The club were a solvent part of the overall portfolio and Straumur had interests in others areas.

                Therefore the risk of a 9 points reduction, technically exists, should the rule be taken to the letter and no other circumstances be considerable, then Liverpool FC would see themselves fall from 6pts in 18th place to the bottom of the table on -3pts.

                It is not a matter that is by any means being deemed as crystal clear, it is an obvious interpretation of the Premier League rules for its member clubs to follow and abide. With the matter heading for the court house next week, it is something that any Liverpool fan would hope never needs to have any clarity provided to it, with a positive result seeing the infamous owners banished from the club.

                As court information is awaited, Hicks & Gillett will not only hope that their fall from grace isn’t made complete with a big thud as rock bottom verdict arrives but that several thousand Liverpool fans are  not outside to wave them off. There is certainly every chance that it could turn out to be a day that will haunt them forever, without doubt there are enough wishing it.


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                  New England Sports Ventures Statement on the Purchase of Liverpool FC

                  October 7, 2010 by 1 Comment

                  The following is a statement issued from New England Sports Ventures on the purchase of Liverpool Football Club.

                  October 6th 2010

                  New England Sports Ventures (“NESV”) can confirm that their bid for Liverpool FC has been selected by the Club’s Board of Directors and agreement has been reached with the Board to purchase the Club. NESV wishes to extend its appreciation to the Board for their diligence and their efforts on behalf of Liverpool FC and its supporters.

                  NESV wants to create a long-term financially solid foundation for Liverpool FC and is dedicated to ensuring that the Club has the resources to build for the future, including the removal of all acquisition debt. Our objective is to stabilize the Club and ultimately return Liverpool FC to its rightful place in English and European football, successfully competing for and winning trophies.

                  Since 2001, New England Sports Ventures has made successful investments in sports and entertainment properties. Our portfolio of companies, including the Boston Red Sox and Fenway Park, New England Sports Network, Fenway Sports Group and Roush Fenway Racing are all committed to one common goal: winning. NESV wants to help bring back the culture of winning to Liverpool FC.

                  We have a proven track record, shown clearly with the Boston Red Sox. The team has won two World Series Championships over the past six years. We will bring the same kind of openness, passion, dedication and professionalism to Liverpool FC.

                  We are hopeful with regard to the pending legal and English Premier League procedures now underway, however, in light of these issues, we will respectfully refrain from comment or further actions at this time.

                  Background on NESV

                  Created in 2001, New England Sports Ventures is one of the largest sports, media and entertainment companies in the world with a proven track record of success for each of its subsidiaries. NESV’s portfolio of companies includes: 100 percent of the Boston Red Sox, a Major League Baseball club; 80 percent of New England Sports Network, a regional sports television network; 100 percent of Fenway Sports Group, a sales and marketing company; and 50% of Roush Fenway Racing, a NASCAR racing team.

                  NESV is led by Principal Owner John Henry and Chairman Tom Werner, who collectively have more than 30 years of experience as owners in Major League Baseball. This ownership group has been voted as the best in MLB by the readers of the Sports Business Journal in each of the past two years, and in 2009 Sports Illustrated selected this group as the number one ownership group in MLB.

                  NESV Achievements

                  From 2002 through 2009, the Boston Red Sox have had the second highest regular season winning percentage in MLB, have qualified for the postseason in a club record six of the past seven seasons, and have won more postseason games and World Series Championships than any other club. In addition to a commitment to winning, NESV has made a significant investment into extensive improvements to Fenway Park, resulting in additional seating, more concourse space, expanded concessions options, and an overall enhancement to the Fenway Park fan experience. The Red Sox have also been deeply committed to supporting the community. Since 2002, the Red Sox Foundation has donated more than $38 million to worthy charitable programs throughout New England, and the team through its Community Relations efforts has given away more than 27,000 autographed items and Fenway experiences to be used in fundraising efforts, and has helped facilitate more than 4,000 player and alumni appearances in the community.

                  New England Sports Network has had the highest rated MLB games for the past six seasons from 2004 through 2009, and in 2009 delivered the highest television household ratings among all regional sports networks in the United States. NESN has also created a large amount of unique and original television content and is at the forefront of the industry in terms of digital media.

                  In addition to assisting with sponsorship sales for both the Red Sox and NESN, Fenway Sports Group serves as the exclusive sales agency for other tier one properties and brands such as Major League Baseball Advanced Media, Boston College, and the Deutsche Bank Championship PGA Tour event; helping many of its clients grow sponsorship revenues by more than 20% annually. FSG also manages all non-baseball events hosted at Fenway Park, including the hockey events centered around the 2010 NHL Winter Classic, the Fenway Football Challenge, and major concerts. FSG provides specialized sports business consulting services for other professional sports teams, assisting the Miami Dolphins in selling the naming rights deal for Sun Life Stadium.

                  Roush Fenway Racing is one of NASCAR’s premier racing teams and has won 32 championships and more than 360 races in drag racing, sports car and stock car racing; as well as five championships across NASCAR’s three premier series.

                  John Henry, Principal Owner

                  Henry’s background includes finance and agriculture, and he is a former limited partner of the New York Yankees and sole owner of the Florida Marlins. He is in the Futures Hall of Fame. He sits on the Executive Council of MLB and manages the Roush Fenway Racing relationship. He is an active board member of Major League Baseball Advanced Media (MLBAM) and specializes in digital media issues. Henry is passionate about soccer and lives in Boston, Massachusetts and Boca Raton, Florida.

                  Tom Werner, Chairman

                  Werner’s background includes Harvard, ABC, and Carsey-Werner, and he is the former owner of the San Diego Padres. He produced some of the biggest hit series in television history such as The Cosby Show, Roseanne, 3rd Rock from the Sun and That 70′s Show. His primary responsibility within NESV is the New England Sports Network (NESN). Werner maintains a residence in Los Angeles and Boston and is passionate about the business of sports.


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                    Martin Broughton Interviews

                    October 7, 2010 by Leave a Comment

                    As news was confirmed that Liverpool Football Club had accepted an offer on the club from New England Sports Ventures (NESV), the owners of the Boston Red Sox, Liverpool chairman Martin Broughton provided a number of interviews to confirm details on the sale and the legal process that awaits the club to conclude it.

                    Martin Broughton: Sky News Interview

                    Martin Broughton: BBC News Interview

                    Martin Broughton: LFCTV Interview with Claire Rourke


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