Liverpool battle moves to court, new bid made

American owners Tom Hicks and George Gillett are trying to block the club’s sale after the board agreed a 300 million-pound ($478.1-million) deal with New England Sports Ventures (NESV), owner of the Boston Red Sox, against their will.

The duo had on Tuesday accepted they had breached their contracts with the lenders but argued that they did so because the board had failed to fully exploit alternative sale options.

While events unfolded inside the court room, Singapore billionaire Peter Lim threw his hat into the ring with an increased cash bid for the club of 320 million pounds.

The case, which is being watched intensely by Liverpool fans who want to get rid of the current owners, will also go a long way to determining whether the club go into administration and face a nine-point deduction.

Hicks and Gillett had tried to dismiss two members of the board and replace them with their own people ahead of the NESV agreement in a bid to scupper the plan, which they said was not in the best interests of the Premier League club.

RBS lawyers argued that Hicks and Gillett had shown “breathtaking arrogance” by trying to change the board.

Liverpool’s major creditor Royal Bank of Scotland (RBS) is contesting the case against the owners because it had ruled that only chairman Martin Broughton could make changes to the board.

That was required by RBS to prevent the two Americans from blocking any sale. Tuesday’s case will examine whether Broughton had the authority to agree the deal with NESV.

RBS said in a statement that Hicks and Gillett were in breach of their contractual undertakings agreed when their loan was extended in April, but said the start of court action does not represent plans to appoint an administrator.

The holding company of the club could already technically be in default, but that would make little difference to proceedings, which will hinge on the outcome of the court case.

Hicks and Gillett, who bought the Merseyside club in February 2007 for 218.9 million pounds and have been increasingly unpopular with fans for burdening it with debt, on Tuesday accepted they had breached their contract.

The pair also argued that the board had overlooked other offers for the club which had stronger prospects and that also they could have been given more time by RBS to find a better deal.

The situation was further complicated when Singapore billionaire Lim increased his bid for one of the world’s most famous clubs to 320 million pounds.

Lim, who made a fortune through stockbroking and is Singapore’s eighth richest man, said in a statement that he would make a further 40 million pounds available for new players.

If the October 15 deadline for a refinancing of Liverpool’s debt is missed, lawyers believe RBS could take control of the club and conduct the sale itself.

That could result in the holding company of the five-time European champions briefly being put into administration, which would result in the points deduction under Premier League rules.

Fans have held boisterous protests calling for the owners’ departure, blaming the club’s worst start to a season for more than half a century on a lack of new players and uncertainty over the future.

The 18-times English champions have picked up just six points from seven games this season.

While many fans joined together to line the Strand in London in protest on Tuesday, Justin Room, wearing a red Liverpool shirt had made it into the packed court room.

“I’ve gone from five years ago in Istanbul watching us win the European Cup to being here, in a courtroom, almost bottom of the league and watching a judge decide our future,” he said.

“They’ve just got to get out, the owners. They’re hated, absolutely hated.”