Friday, February 18, 2011

Liverpool Welcome High Court Ruling

Former Liverpool co-owner Tom Hicks has been dealt a blow in his plans to sue the club after the High Court ruled that he would have to bring his case to the UK, where it is highly unlikely he will be successful in any pursuit to receive damages over the sale of the team.

Liverpool FC were sold last year after judge Mr. Justice Floyd granted the board of directors permission to sell the club to NESV (New England Sports Ventures, now Fenway Sports Group) for £300 million, despite opposition from Hicks.

Hicks and co-owner George Gillett are trying to claim $1 billion (£620m) in damages from RBS, who the pair had been in debt to over their purchase of the club in 2007, and former directors.

The duo had a much higher valuation of the club and believe they are owed compensation as a result of "an epic swindle".

But Mr. Justice Floyd has ruled that any case will have to be brought to a UK court, and has given former chairman Sir Martin Broughton and NESV the option to receive protection from any damages claimed by Hicks, meaning it is highly unlikely that the former owner will be successful in any case against the club's new owners.

"We are delighted that Mr. Justice Floyd has granted the applications requested by Sir Martin Broughton, RBS and NESV and that the anti-suit injunction prohibiting the former owners from commencing legal actions against these parties outside the EU has been upheld and clarified," said a statement from Liverpool FC.

"Sir Martin, RBS and NESV continue to maintain that there is no basis to challenge the propriety or validity of any actions by them or any of those involved on their behalf in the sale of the club.

"They will continue to take all steps necessary to defend vigorously any litigation threatened or commenced by the club's former owners."

RBS loaned Hicks and Gillett the money to buy Liverpool for a fee of £220m before the club reached the Champions League final for a second time in three years.

Hicks and Gillett had promised to invest in players and build a new stadium to raise the value of the club, but failed to deliver and eventually agreed to sell up and hoped to fetch in the region of £800m for their asset.

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