Administration fears for Liverpool

by The Rumour Monger
(Cyberspace)

The spectre of administration, a 9-point deduction, and potential relegation hung over crisis club Liverpool yesterday, as doubts began to surface over the sale of the club to New England Sports Ventures (NESV).

NESV believed that their offer of £300 million had been accepted and that the deal would go through without a hitch. However, current owner George Hicks disputes the authority of chairman Martin Broughton to have completed the sale in the first place, and has lodged an appeal with the High Court.

The case goes before the court on Friday, the same day that Liverpool's £280m debt to the Royal Bank of Scotland becomes due.

If - as seems likely - the debt is not repaid, the bank has the option of placing Liverpool's holding company in administration. The Premier League will then be obliged to impose a 9-point penalty, placing the Reds at the bottom of the table on minus 3 points.

All of this puts NESV in a difficult position. The American consortium remains committed to buying the club, but are not prepared to pay over the odds for a team that faces the genuine prospect of playing in the Championship next season.