Liverpool could face administration, says chairman

Liverpool chairman Martin Broughton admits the club could end up in administration if the increasingly bitter battle to take over the Reds isn’t resolved in his favour next week.

The future of the Premier League outfit will be decided in the High Court on Tuesday as Broughton battles with the club’s American owners George Gillett and Tom Hicks over the proposed sale of the club to New England Sports Ventures (NESV).

Broughton has set up a 300-million-pounds (478-million-dollars) sale to NESV, who own the Boston Red Sox baseball team, but Hicks and Gillett are not happy with the price and are now taking the issue to court.

If Hicks and Gillett win their case, then Broughton says the club could very well go into administration as the club’s main financial backers, Royal Bank of Scotland (RBS), are due to call in their debt of 280 million pounds (447 million dollars) on October 15.

Should RBS call in their debts, then that would see Liverpool enter administration which would also see a nine-point deduction in the Premier League.

“It (administration) could happen, yes,” Broughton told the Daily Telegraph.

“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. It is not inevitable, and I am not going to start giving percentages of how much it is possible.

“That is why we are going to court to clarify our position on the sale of the club, and we have to win in court, and we will win in court.”

Broughton admits administration would be a major blow to his bid to sell the club for a fair price, as well as hindering the team’s hopes of avoiding relegation.

Roy Hodgson’s side are already languishing in the Premier League relegation zone after their worst start to a season for nearly 50 years.

“Going into administration needs to be avoided at all costs, as the negative impact would be catastrophic,” he said.

“Setting aside the nine-point deduction, it would have an impact on Liverpool’s value and be wide open to predators, whereas we have what we believe is the right new owners to take the club forward.”