Friday, October 08, 2010

League Approves Sale Of Gillett's Liverpool FC Club is reporting today that that the English Premier Soccer League has approved a $476 million bid by New England Sports Ventures --- owners of the Boston Red Sox – to purchase the Liverpool franchise from Richard Petty Motorsports majority owner George Gillett, Jr., and his partner, Tom Hicks.

The deal is expected to face a court challenge from Gillett and Hicks, who stand to lose approximately $223 million on the deal and say the club is worth approximately twice what NESV has offered.

Gillett and Hicks must repay their major creditor -- Royal Bank of Scotland -- $445.5 million by October 15; roughly $382 million in loans and another $63.6 million in fees. If they succeed in blocking the sale in British High Court next week, they will be forced to either repay the bank or refinance their debt to avoid penalties from the league.

New England Sports Ventures -- headed by Roush Fenway Racing co-owner John Henry -- issued a statement Tuesday saying, "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 ... return Liverpool FC to its rightful place in English and European football, successfully competing for and winning trophies.”

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