Liverpool FC could face points deduction
Fri 8th Oct 2010 | Football Club Administration
Prospect of Liverpool Football Club being docked 9 points should come as no surprise to Liverpool fans.
The club, which is the middle of a takeover battle could be docked the points if current owners Hicks & Gillett are successful in their attempts to block the proposed takeover by New England Sports Ventures (NESV).
If the High Court rules in favour of the current co-owners and blocks the sale to NESV, it is likely that RBS could call in its loans which including penalties, amounts to around £280m.
Should this happen it would effectively place Liverpool’s holding company, Kop Football (Holdings) Ltd, into administration, triggering a likely points deduction.
According to Premier League sources this would trigger a “significant risk” of a points deduction, even though the insolvency was at the holding company and not the club, and despite Liverpool FC itself being solvent.
This would not be the first time a club has been docked points in this manner. Southampton were docked points by the Football League when its holding company was pushed into administration because the club was its only asset, and the football club itself was insolvent.
Commercially, Liverpool have had an outstanding year having signed an £80m four year deal with Standard Charter. However, they have been unable to compete in terms of matchday revenues due to Anfield’s capacity of 44,000.
Google
Yahoo
Live
del.icio
DiggRelated Articles
SFA Impose Player Trading Sanctions on Rangers
Tue 24th Apr 2012 | Football Club Administration
Rangers’ administrators, Duff & Phelps believe the Scottish FA’s (SFA) decision to impose sanctions on the club will seriously undermine their attempts to rebuild the club. The...
Rangers Administrators Issue Statement
Tue 3rd Apr 2012 | Football Club Administration
Duff & Phelps, administrators of Rangers Football Club, issued the following statement today. Paul Clark, Joint Administrator, said: “As administrators we are obliged, as part of our...
Port Vale Attracting Strong Interest
Wed 21st Mar 2012 | Football Club Administration
Administrators of Port Vale Football Club are reporting strong interest in acquiring the club which went into administration earlier this month. Bob Young, Gerald Krasner and Steve Currie of corporate...
Dave King fears liquidation for Rangers
Wed 7th Mar 2012 | Football Club Administration
Rangers director Dave King believes it is "inevitable" the club will plunge into liquidation after administrators were called in at Ibrox. South Africa-based King, the only survivor from the Sir David...
