RBS deadline and law suit - Liverpool's fate hangs in balance
Once a premiership giant, Liverpool now finds itself in hot waters as the possibility of financial administration now becomes a stark reality for the club and its fans. Liverpool's chairman, Martin Broughton has even admitted that he fears administration
and docking of nine points in the future but he is also hopeful that he will be able to manage it and take the club out from the quagmire of financial vulnerability.
Reportedly, Liverpool has to meet Royal Bank of Scotland’s deadline of 15th October 2010 for the repayment of £237m or else the bank will either take over the control of the club directly or put it into administration. To make things worse, a Liverpool civil
war involving the American owners and Liverpool's management is also expected at the High Court just before the drop scene.
While answering the reporters' queries regarding Liverpool’s future prospects, Broughton said: “It could happen, yes. This is all part of why it is important that we made the decision on Tuesday to accept one or the other of the two very acceptable bids.
Heading for administration was a very likely outcome if we didn't. Even now with the court case looming, administration cannot be ruled out.”
However, he is hopeful that Liverpool’s fate is not yet sealed and administration is not inevitable but he also said that the real battle will be fought in the court where the future of the club will be decided in the end. It would be a tragedy of massive
proportions for not only Liverpool fans but also for the whole football world if the 5-times European Champion loses its financial footing.
Commenting on it, Broughton said: “Yes, this is about Liverpool, but it is also about football, not just Liverpool, and all of football would want to see Liverpool in a healthy state. Yes, I am confident that we shall succeed, but lawyers are always confident
- on both sides.”
The impact of administration will be a colossal one for Liverpool as it will devalue the club immensely which will make it pregnable for takeover. At the centre of all the financial bickering are the former owners of Liverpool- Hicks and Gillett. Apparently,
the legal team has cautioned Broughton of speaking openly about the American tycoons in the wake of court proceedings.
On the other hand, Hick has publicly declared that he has not given any undertaking to Liverpool's chairman regarding the constitution of the Board whereas Broughton clearly asserts that undertaking was part of the agreement with RBS to increase the facility
of the loan.“If an obligation is given to RBS as part of the agreement then an obligation has been given to the major creditor and one would expect that to be honoured,” Broughton said.
Nevertheless, Broughton believes that the new owner, John Henry will be successful in convincing Fernando Torres and Steven Gerrard to remain in the club so that they can all together build the future of the team. The owners of Boston Red Sox are also hoping
to meet the manager, Roy Hodgson and his team as soon as possible to discuss their future strategy.
In the case of any adverse verdict from the court, the competitors will jump in to capture the prized possessions of Liverpool. Gerrard and Torres are already prospective targets of various clubs, especially Real Madrid and Inter Milan. Broughton commented:
“The new owners want to be winners, and Fernando Torres wants to be a winner. Will Fernando want to stay when he hears what they've got to say - absolutely? The plan was to get all the players together at the training ground to inform them of the events, but
then we discovered that most of them had gone off for international duty.”
The coming few days will be vital for Liverpool as the effects of these could well decide the fate of the club for many years to come.
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