NESV Threaten To Walk Away From Purchase If Club Are Docked Points

New England Sports Ventures positioned itself to renegotiate its proposed £300 million purchase of Liverpool over the weekend, threatening to walk away if the club were docked nine points as a result of administration.

Having indicated on Friday that, as the threat of administration was considered remote, NESV remained committed to the deal regardless, the syndicate’s view hardened considerably over the weekend.

Liverpool chairman Martin Broughton is seeking High Court approval for the sale to NESV against the wishes of owners Tom Hicks and George Gillett, with a hearing expected to take place on Tuesday. There were suggestions last night that the club were considering an approach for representation to Lord Grabiner QC, a company disputes specialist.

If the court endorses Broughton’s right to sell the club, NESV will go through with the deal agreed last week. Should the court rule against the chairman, however, administration is a genuine possibility, and NESV now regards it as a deal-breaker and will consider walking away entirely if the club is docked nine points.

NESV is understood to have secured a clause in the deal signed with Broughton in the early hours of Wednesday allowing it to renegotiate the price in the event of administration. Broughton warned on Friday that administration “would impact on Liverpool’s value and [leave it] wide open to predators”.

NESV’s change in position comes after the Premier League told the club board that a nine-point deduction was a “significant risk” even if the administration occurred at Liverpool’s holding company Kop Football (Holdings) Ltd.

Royal Bank of Scotland, whose £237 million loans to Hicks and Gillett via Kop Holdings becomes due on Friday, has indicated that if the court rules against Broughton it might be forced put the company into administration to effect a change of control. NESV’s threat to walk away came as a surprise to RBS and the club board, and was interpreted by several sources close to the negotiations as a positioning exercise. It is also evidence of a marked deterioration in relations between John W Henry’s group, the club board and RBS.

Henry and his advisers are understood to have become frustrated at last week’s events. As late as Monday they believed that they were the only serious bidders for the club, only to be told on Tuesday that they were one of two, with the other emanating from Asia. They also believed that Broughton had clear authority to sell the club and were surprised at the legal challenge from Hicks and Gillett.

They increased their offer to secure preferred bidder status, but an apparent lack of clarity over the threat of administration and the likely Premier League sanctions have tested their patience.

Despite having opened negotiations with Broughton and RBS in mid-August, and begun due diligence two weeks ago, the threat of administration and a points deduction appears to have surprised Henry and his advisers.

RBS has been closely involved in the negotiations with NESV and the club board, and its stance should not have come as a surprise. For several weeks the bank and the board have privately indicated that administration of Kop Holdings was considered ‘Plan B’ if a sale could not be agreed.

The Premier League, meanwhile, insists that it gave the Liverpool board guidance on the risk of a points sanction last Tuesday, but that it did not differ from that given to all clubs at the start of the season.

Liverpool managing director Christian Purslow said on Sunday that he was confident a deal would go through. “I’m completely focused on making sure the sale completes. I’m not contemplating administ-ration and nobody should be,” he said, less than 48 hours after Broughton said it could not be ruled out.

“NESV approached us. They met our chairman. He was immediately struck with their seriousness and the entire senior management team of NESV came to Liverpool. They spent a large amount of time in the club doing their work.”

Dalglish Warns Potential Owners Of Expectations

Liverpool legend Kenny Dalglish has warned Liverpool's potential new owners that their task of rebuilding fans' faith in the club's hierarchy will be tough.

The Merseyside club are subject to a take-over saga with New England Sports Ventures attempting to buy out current Anfield co-owners Tom Hicks and George Gillett.

But it's Hicks and Gillett's time at Liverpool, which has been shrouded with ill-feeling since their arrival in 2007, that has seen the club saddled with unmanageable debts.

And now, a High Court battle is the last resort the current owners have taken to keep control of the club, which has only added to the animosity.

Dalglish, in particular, has been saddened with the events surrounding the club, and is desperate to see a conclusion.

The former Scotland international, who has been reported to be a possible replacement for under-fire Reds manager Roy Hodgson, said in his column in the Daily Mail: "These have been depressing times at Anfield.

"It is never nice when your football club are making as many headlines on the front pages as the back.

"This week looks set to be huge for Liverpool but there is still a feeling of uncertainty because nobody can guarantee what is going to happen next.

"I feel particularly for the fans, who must find it difficult to know which way to turn. I am sure the majority of them are quite happy that the club might be sold but what they really want is to see Liverpool move onwards and upwards from here.

"Let's hope we can and that things work out. Liverpool is usually a glass half-full kind of city, and The Kop are renowned throughout the world for their humour and spirit."

Dalglish added: "It is essential for any potential new owners to assure the supporters they have a long-term plan for the club that will see the club's debt problem resolved, investment made for new players and a solution found where Liverpool's match-day revenues increase either at an enlarged Anfield or a new stadium.

"Fans stop me in the street and ask me what is going to happen. I can't give them a precise answer but I do know this club's DNA will ensure they survive and are successful in the future.

"Just don't expect the scepticism from supporters to disappear overnight, not after the journey they've been on."

Why Liverpool Fans Shouldn’t Fear Administration

The word administration will universally strike fear in football fans. Points deductions and a mass exodus of players is something that will normally follow after a club slips in to administration, however I am certain Liverpool won’t have to suffer the costs of the dreaded A word.

British newspapers are today reporting that Liverpool slipping in to administration will mean the collapse of the NESV takeover. However I can’t see why Liverpool’s finances will collapse in that way.

If the High Court rules that the NESV takeover cannot be completed, then it will be down to the Royal Bank of Scotland to decide the clubs fate. Their options would then be, to call in the massive debt, and effectively repossess the club, or to extend the time given to Tom Hicks and George Gillett to repay the loans.

The later of the two options seems highly unlikely given the duos past record of paying their debts. So what would happen if the club was to be repossessed?

In this case the Bank of Scotland could appoint an administrator, however it would seem pure madness to do so when there is a party who is actively looking to buy the club. The most sensible solution would appear to be for NESV to simply clear the clubs debt with RBS and therefore takeover the club.

So Liverpool fans shouldn’t be alarmed by the murmurs of administration because it would be a move that wouldn’t suit any party. As long as there is interest in the club, Liverpool will not be going in to administration. With a club of Liverpool’s history and prowess, there will always be interest.

Yes this is all speculation, and with the strange dealings that have gone at Liverpool during the past few weeks and months maybe we should expect the bizarre, but you have to feel that Anfield will be free of the burden of Hicks and Gillett in the not so distant future.

On a side note, Tom Hicks summed up his relationship with Liverpool fans by saying they “are a noise we are dealing with.” I think that says it all about this regime and the desperate need for change on Merseyside.

Liverpool Join Race To Sign £8m Rated Premier League Playmaker

Three clubs are reportedly interested in signing under-used Tottenham midfielder Niko Kranjcar. The Croatia ace is being linked with a move away from White Hart Lane after failing to start a club match this term. Sources in his home country believe Monaco and two un-named Premier League clubs have an interest in signing the 26-year-old.

The two unnamed Premier Leagues are rumoured to be Aston Villa and Liverpool and both sides would do well to snap up the White Hart Lane man who can’t seem to force his way into the Tottenham reckoning. Harry Redknapp is quite right to state that with Gareth Bale in incredible form the Croatian playmaker has less chance to get a first team start and at 26 he will not want to be wasting away on the bench.

Gerard Houllier is known to be an admirer of the former Portsmouth man and the Villa Park boss has been promised funds to invest in his squad in January and the Frenchman is looking to inject more creativity into his Aston Villa squad.

However, it is believed that £8m rated Kranjcar has a liking for Liverpool and may prefer a move to Merseyside but clearly such a move would depend greatly on what state the club is in come January and that also depends very much on whether the Tom Hicks and George Gillett would still be at the club by that time, which seems unlikely.

Roy Hodgson is desperately looking for players to help provide the cutting edge in the attacking third and he would dearly love to secure the signing of the Tottenham man who is an adaptable attacker who can play out wide or in an advanced midfield role.

A move to Monaco seems less likely given the poor start the club has made in Ligue 1 this term added to the fact that after four years in England Niko appears settled and feels the need to prove himself in the Premier League.

Liverpool Line Up Swoop For Reto Ziegler

Liverpool will face competition from several European clubs, but have their eye on Swiss left-back Reto Ziegler, who has just turned down a new deal with Sampdoria.

Liverpool was linked with Ziegler over the summer, but in the end Roy Hodgson brought Paul Konchesky to Anfield. Nonetheless, should Liverpool’s off-field problems be ironed out, Italian website Tuttomercato reports that Hodgson will renew his interest in Ziegler.

The 24-year-old has turned down the offer of a new deal at Sampdoria from the club’s director general Sergio Gasparin. Tuttomercato reports that Ziegler could leave the club as early as January, with Liverpool facing competition from Juventus, Hamburg and Zenit St Petersburg among others.

Zeigler is a quick and skillful player, who can fill a role as a left-winger as well as at left full-back. His versatility could well be an asset to Hodgson’s struggling Liverpool side.

He joined Tottenham as a teenager from Grasshoppers Zurich 2004 and impressed the White Hart Lane faithful with his neat, controlled football. However, he failed to command a regular place in the starting line-up at the North Londoners and moved on for first-team football.

Ziegler scored two goals for Sampdoria in 37 appearances last season.

Gerrard Hopes For Shelvey

Steven Gerrard feels England youth star Jonjo Shelvey has a big career ahead of him at Liverpool.

Shelvey arrived at Anfield in the summer from Charlton, but he has been limited to just one appearance in the League Cup since moving.

But Reds skipper Gerrard thinks he showed enough in the defeat against Northampton, to show he has huge potential.

"When Jonjo came on against Northampton I thought he did really well," Gerrard said on the club's official website.

"He put some dangerous balls into their box and just that piece of action will have done him the world of good as he moves forward.

"It'll give him the confidence to try and shift people from the first eleven.

"He is a talented player. He's still young and still a baby in football terms but if he keeps learning - not just from me but from everyone in the squad, people who are older than him and have been there and done it before - his game will continue to get better and better."

Pepe Reina Wants An End To The Takeover 'Chaos' At Liverpool

Liverpool's goalkeeper Pepe Reina wants a quick end to takeover talk surrounding the club as he feels it is a distracting the club and players.

The takeover crisis involves New England Sport Ventures (NESV) bidding £300 million to take over the club from current owners Tom Hicks and George Gillett. However, the American executives are involving the high court to try to prevent the sale of the club, as they feel it is invalid and undervaluing the club.

But the Spaniard understandably just wants to do the talking on the pitch.

"The only thing we can do is play football and the things that are going on around the club, the ownership situation and all that is out of our hands," the 28-year-old told reporters.

"It’s still too soon to talk about the takeover because there is still some chaos down there.

"I am worried. I am worried because of the situation of the club but I am optimistic and I think we are going to bounce back and be our best in a few months. At least that’s what I hope."

What is more worrying for Reina and everyone involved at the club is if Hicks and Gillett manage to block the sale of the team going through.

This would mean that the Royal Bank of Scotland - who Kop Holdings owe £237 million - could chase after the debt as soon as Friday, meaning that Liverpool would be put into administration and incur a nine point penalty in the process.

And Reina admits that this would be a mighty blow in what has already proved to be a hard start to the season.

"It would be a tough setback and a very difficult situation but I am optimistic that everything will be sorted out before that," he added.

"All that we can do now is hope and pray for a good finish and a very good ending.

"We could do nothing [so far] apart from winning games and that hasn’t been the case unfortunately."

The Madrid born star still believes that if the club did go into administration and incur the nine-point penalty, they would still have enough quality to avoid relegation, but conceded that securing a place in Europe would be very unlikely.

"I still believe that even with nine less points we will be able to stay in the Premier League but of course it will be no other target possible for us because with nine points less it’s going to be a tough, tough year.

"I don’t even want to think about that because we won’t be that bad and it won’t be like this."

It has been a difficult start to the season for the reds, having played both halves of Manchester and Arsenal, so Reina feels that a few victories in the coming matches can lift the team spirits.

"The team is good enough to start winning games. It’s a difficult situation but we have to stick together and work hard to try to turn it around."

Reina, who signed a six-year contract with Liverpool in April denied any rumours linking to other clubs, particularly after reported interest from Arsenal.

"The only thing I can do is play football and focus on Liverpool because I just signed a six-year contract," Reina said.

"It’s just because of the press. I don’t know anything else."

The goalkeeper also felt that his fellow compatriot Fernando Torres, who has struggled with form and injuries recently, would be back to his best before too long.

"Fernando is one of the best strikers in the world. As soon as he is fit once again, and he’s working on that, he will be shining once again for us."

Fog Of Anfield Boardroom War Clouds Over Merseyside Derby

All that is known about the immediate future of Liverpool Football Club is this: at 1.30 next Sunday, Roy Hodgson's side will take to the field for the Merseyside derby at Goodison Park. Steven Gerrard will wear the captain's armband, Fernando Torres, injury permitting, will lead the attacking line.

For the 214th time, red will face blue. Everything else is shades of grey.

Liverpool, perhaps for as much as the next seven days, exist in a state of duality. The side that Hodgson picks to face Everton may have six Premier League points, or they may have, in effect, minus three. Their wages may be paid from Dallas, from Boston, from Gogarburn or from points unknown.

They may be supported from the Paddock by fans relieved that the nightmare of the last three years, the toxic reign of Tom Hicks and George Gillett, is over and a new era under New England Sports Ventures (NESV) has begun. They may find the protest songs that have replaced more traditional serenades are spat with greater ferocity than ever.

They may have a bright future, or they may seem to have no future. It may all be over, or it may all just have begun. Liverpool are the Premier League's version of Schrodinger's cat. They are a club caught in existential limbo, simultaneously alive and dead.

At the High Court this week, chairman Martin Broughton must prove that Hicks and Gillett not only signed over to him the right to appoint and remove directors, but agreed he could sell the club for what he felt was the best offer.

Hicks and Gillett, in turn, must prove the NESV offer is not reasonable, and both that their higher valuation of the club is realistic and that someone may be willing to pay it.

Which Liverpool side -- the one imbued with purpose, or the one mired in doubt -- attends Goodison Park may well be decided on the Strand.

If Broughton is proved correct then it is likely to be the former, as a club inspired by the sight of its new owners in the directors' box finally feels the gloom has lifted. If Hicks and Gillett win, even after an appeal that will be heard within 72 hours of the original case, then it will be the latter.

It is here that Liverpool's future becomes complicated. If Broughton is unsuccessful, then the sale will not proceed. On Friday, RBS will call in their debts. Unless Hicks and Gillett can pay back around £200m -- and all attempts to raise that funding have failed -- then the club, or, more accurately, its holding company Kop Football, will be taken into administration.

That, too, has dual ramifications. It is positive, in that it would effectively force Hicks and Gillett out as RBS seize control and look to complete a quick sale, perhaps costing the Americans a further £110m in personal guarantees and most likely presenting the club to NESV.

It is negative, though, because the Premier League would be minded to dock Liverpool nine points, three more than they have.

It is not nearly so simple as that, though. Regardless of how the court finds, if Hicks and Gillett pay back their debts in the next six days -- however hypothetical that seems -- then they remove much of the bank's leverage. They would be able to stop the sale, buying crucial time to remove directors.

Yet even that is a shorthand. Hicks and Gillett as a dual entity no longer exist. The latter has been replaced by Mill Financial, the company with whom he took out a $75m (£47m) loan in December 2008 with his 50 per cent share in the partnership that owns Liverpool as security. He has defaulted on that loan, and Mill, a division of Springfield Financial, have called it in.

Sources in the US insist that is simply a legal measure; Liverpool and RBS believe it is not a complicating factor. Yet both sides are concerned enough to have had contact with Mill in the past few days.

That Hicks's two would-be directors are both his loyalists indicates he cannot be sure of Gillett's place on the board.

That is how unclear Liverpool's future is: not only is Broughton trying to sell a club he does not own, not only is Hicks trying to hold on to a club he did not pay for, half of that club belongs to a real estate company based in Arlington, Virginia, and their intentions -- though most likely simply to recoup their money -- are shaded in grey.

Liverpool can only hope that, by the time red and blue face each other, everything else is black and white.

Liverpool's New Owners Face A Familiar Stadium Dilemma At Anfield

Jamie Carragher's testimonial committee had three basic wishes when, more than two years ago, they started preparing for his big day. Everton would provide the opposition; local charities would receive the proceeds; and the game would be the first at Liverpool's grand new stadium on Stanley Park. On 4 September this year they fulfilled two out of three. At Anfield.

Like many before them, they were long ago resigned to the fact that option three was an illusion.

The frustrations of Carragher's committee were trivial and brief in comparison to those suffered by Liverpool supporters, and by residents of one of the most deprived local authority wards in Britain, for whom a new stadium was presented as key to regeneration and 1,000 new jobs in the late 1990s.

This week, given the right result in the high court, New England Sports Ventures will be tasked with delivering an arena that is essential both to the revival of Liverpool FC and a community. The contentment of Fernando Torres and promised transfer sprees deliver headlines that win immediate support for prospective new owners, but it is how quickly they construct a solution to a 40-year-old problem will determine Liverpool's long-term fortunes.

John W Henry and his 16 fellow investors in NESV do not yet have control of Liverpool but there is already scepticism over their prospects. The club's astute former chief executive, Peter Robinson, identified the constraints at Anfield when calling for a joint stadium with Everton in the late 1960s. It was an inability to fund a new stadium that prompted David Moores to sell to Tom Hicks and George Gillett, and the main reason the Americans lost their business model and trust at Liverpool.

"If they had not been leveraged then they would have started the stadium, and we wouldn't be saying what terrible guys these are," said Martin Broughton, the Liverpool chairman attempting to sell the club against the wishes of the American co-owners.

As regards the income-generating potential of a big, modern stadium, Liverpool have been left trailing by a growing number of rivals for more than a decade. A commitment to build, and to inject £100m in cash into the project, was a condition of the sale process conducted by Broughton and the chief executive Christian Purslow, and it was the track record of NESV in redeveloping the Fenway Park home of the Boston Red Sox that swayed a majority on the Liverpool board. The club had received an identical £300m offer, of which £240m is cash, from a rival suitor in Asia.

NESV will not arrive blind to the situation should they be installed as owners this week. The group have already held discussions with the Royal Bank of Scotland over financing a new stadium through, as Broughton put it, "a sensible, normal level of debt and equity". Joe Anderson, the leader of Liverpool city council, is also primed to meet owners he has welcomed but whose intention to consider redeveloping Anfield he opposes.

Liverpool and the Anfield area have deteriorated in tandem while the club have remained at their iconic, atmospheric but financially constrained 45,362-capacity home. Given the respective revenue streams of England's leading clubs it is no surprise that Rafael Benítez, and Gérard Houllier before him, frequently complained about the expectation to deliver a first league title since 1990 on such an uneven playing field.

In the financial year 2008-09, Liverpool earned £42m from gate and match-day income. Manchester United generated £109m and Arsenal £100m in the same period. United's good fortune in having access to acres of land to redevelop Old Trafford, and Arsenal's exhaustive fight to construct the Emirates, means they earn more from home matches per season than from TV and broadcasting. Liverpool are among those clubs for whom TV and broadcasting revenue outweighs match-day earnings.

Liverpool's commercial income has tripled in recent years under director Ian Ayre, however, helping the club achieve a record income of £185m in the year ending 30 July 2009. That, and Liverpool's mass global appeal, ensures that in two of the three main revenue streams for Premier League clubs – commercial activities, broadcasting rights and match-day – Liverpool fare impressively. Once the interest payments on debts built up by Hicks and Gillett are no more – last year they stood at almost £40m – their spending power increases further. But they will continue to languish behind their competitors without a new stadium that can seat 60,000-plus, and now is not the time to be found wanting.

Manchester City embody the race to cement a place in the Champions League and close the drawbridge on the rest before Uefa's financial fair-play rules come into effect in 2012-13. The rules "encourage clubs to operate more responsibly by not spending more than they earn", according to Uefa, and will prevent clubs that are bankrolled by billionaires competing in Europe unless they break even over a rolling three-year period. Debt taken on to build a new stadium does not enter the Uefa equation, so Tottenham, with planning permission for a new 56,000-seat stadium near White Hart Lane and an application in to lease the Olympic Stadium after 2012, have also stolen a march on Liverpool.

"The financial fair-play rules come into effect pretty damn soon so taking a rational, commercial approach to success is absolutely the right way forward," insists Broughton. "I couldn't help notice that Manchester City's wage bill for last year was exceeding its revenue. That is going to be very difficult under financial fair play. They might be able to sort it out before then but we were not looking for someone who was going to put us in that position. We were looking for somebody who was going to see this as a commercial business that can be commercially successful."

Simply breaking the ground would be ground-breaking for Liverpool.

Liverpool Chairman Wanted Abramovich-Style Owner

Liverpool chairman Martin Broughton has revealed that he "scoured the world" in search of a sugar daddy owner in the mould of Roman Abramovich and Sheikh Mansour bin Zayed al-Nahyan but failed to find one.

While a section of Liverpool fans are concerned it will be a case of out of the frying pan into the fire by swapping one set of American owners with another, Broughton attempts to ease their worries in an exclusive interview with ESPNsoccernet while away in the States.

Instead of a billionaire, Liverpool will have a few multi-millionaires, and in the financially-competitive Premier League there is some scepticism about the men who own Boston Red Sox, New England Sports Ventures.

From his Washington hotel, Broughton told ESPNsoccernet that it might turn out to be better in the long run.

Broughton explained: "We searched the world looking for another owner like the ones at Chelsea and Manchester City. With all of Liverpool's traditions, heritage, history and powerful global brand, I must admit I thought it would be possible to find one.

"We hoped for someone who wanted a 'trophy asset', but having scoured the world without finding one, the conclusion is that there are no more Romans out there.

"Yes, of course, it is disappointing that even a name like Liverpool failed to attract one, so I cannot imagine other club having much luck."

I suggested to Broughton that it is very optimistic to believe that there are sugar daddies queueing up to buy Premier League clubs, when in reality that is not the case. The majority of Premier League clubs would leap at the chance of a takeover, and Liverpool at last have one, while many are still waiting in hope to clear their debts.

Broughton said: "Yes, everyone is aware of how many Premier League clubs there are for sale, but Liverpool is different, at least it should have been different, as it is a global brand compared to some of the other clubs, and for that reason you would have thought it would have appealed to a sugar daddy.

"But the truth is that there is only one Roman Abramovich, there is only one Sheikh Mansour, because we couldn't find another one."

Chelsea cost their Russian owner less than £70 million, taking control with a £17 million buyout of Ken Bates, although he invested half a billion from that point. It was the same at Manchester City, where there wasn't a premium price tag.

Broughton added: "With Liverpool, whatever the price to buy it, came a heavy obligation to spend something like £300 million on a new stadium, and £350 million of debt or an obligation to turn that into equity. Liverpool came with some heavy numbers, whereas Abramovich paid very little to gain control of Chelsea.

"So no matter how far and wide we looked there was no evidence of a sugar daddy type around.

"Perhaps it will end up being to our advantage, when the financial fair play rules apply in 2013, we will have the ideal owners in a way, owners who understand the commercial realities of a running a club and running a sporting team, and how to invest in the team, and produce a winning team.

"More reality will come in to football, and it is important that our supporters take this aspect on board. Put Manchester City to one side, and how many big money transfers were there this summer? Not that many. Reality is setting in across the board."

Hicks And Gillett Could Cost Themselves £110 Million

Liverpool's ace card against Tom Hicks and George Gillett in the looming court case is that the £300 million takeover by New England Sports Ventures is actually in the best interests of the outgoing owners - because it wipes out a massive £110 million worth of personal guarantees to the Royal Bank of Scotland.

Hicks and Gillett stand to lose a total of £254 million if the move by the owners of the Boston Red Sox collapses and they cannot find a replacement new owner by Friday.

In another twist, leaked minutes from a Liverpool board meeting allegedly contain Hicks making personal and abusive comments about Liverpool fans, which will rake up the hatred felt by the supporters against the current owners. However, it is impossible to see how much more despised Hicks and Gillett can become.

More importantly, ESPNsoccernet can exclusively reveal the cornerstone of Liverpool's case is that the takeover is in everyone's best interests. The hearing is not likely until Tuesday at the earliest. An inside source said: "It's in Hicks and Gillett's best interests, the board will argue, because it caps their losses at £144 million. Part of the deal with NESV is that the Royal Bank of Scotland wipe out the £110 million of personal guarantees."

An out of court settlement with Hicks and Gillett cannot be ruled out as the board is so confident that they will win the court case. Martin Broughton cannot comment on the specifics of the case, but the Liverpool chairman has told ESPNsoccernet that he believes he can win the case and the takeover can go through.

Behind the scenes 'negotiations' are clearly going on between the warring factions aimed at avoiding a messy public court hearing that would tear the club apart. Equally, the court hearing, which comes just days before Friday's deadline with the Royal Bank of Scotland, is unlikely to be the end of the legal wranglings, as whoever losses the initial hearing is sure to seek an appeal.

On the issue of an appeal, Liverpool's lawyers will argue that if Hicks and Gillett lose and the takeover can go through, and they call for an appeal, it would seriously jeopordise the takeover, and potentially throw the club into administration, thereby putting the club's surviva at risk.

If the legal actions drag to a second hearing, it is inevitable that RBS will have to take some decision on Friday, most likely to suspend the outcome of whether to put the club into administration pending the final court room verdict.

The logical solution is for both sets of lawyers to find some sort of middle ground, even if it is a settlement on the steps of the High Court. There is no direct contact anymore between the factions, with Hicks and Gillett on one side and the three English members of the board led by Broughton on the other.

Broughton told ESPNsoccernet exclusively: "All of these issues I cannot possibly comment on, as this is going to court, one would assume. We have no date for the hearing yet, but we are told it is a 'short order' and so it would be any day hopefully early next week.

However, without going into any legal detail, Broughton said: "Yes, I am confident we shall win. However we all know when you have to sets of lawyers they are both telling you that they are 100% confident that they will win."

Dalglish Quiet Over Potential Liverpool Return

Kenny Dalglish was asked on Saturday if he wanted to return to football management, and the Liverpool legend chose not to rule out his potential comeback.

The name of Dalglish echoed around Anfield at the end of Liverpool's recent 2-1 defeat to Blackpool, with many fans believing the Scot should have been handed the manager's job after Rafael Benitez departed. Dalglish did offer his services over the summer but was flatly ruled out of the equation by chairman Martin Broughton.

However, after Roy Hodgson took his league record to one win in seven with the Blackpool defeat, the possibility of Dalglish taking on a second stint as the Reds' manager appears to be back on the horizon.

The club expects to have new owners within a week's time as New England Sports Ventures attempts to complete the takeover of Liverpool Football Club, and Broughton recently confirmed that, while the new owners have confidence in Hodgson, the current manager does have a release clause in his contract.

Dalglish has far too much respect for Hodgson to put him in an unenviable position by reiterating his desire to take the reins at Anfield, but the club's most revered player could not deny his interest when asked over the weekend.

"First of all you need to be asked, second it needs to be suitable if you were asked," Dalglish told Reuters.

"Because you don't say 'No', people think you say 'Yes' but that is not necessarily true either. I wouldn't say anything other than I am really happy at the moment. There is nothing definitive either way."

Chairman Confirms Hodgson Release Clause

Liverpool chairman Martin Broughton has confirmed to ESPNsoccernet that the future of manager Roy Hodgson following a takeover is catered for in the provisions of his contract.

Prospective owners New England Sports Ventures (NESV), led by John W Henry, plans to sit down with Hodgson once the deal is complete to discuss his vision for Liverpool's future.

The men who own the Boston Red Sox have no immediate plans to install their own manager but Broughton was brutally honest about the situation Hodgson now faces, and how Hodgson entered into his Liverpool contract with his eyes wide open.

In an exclusive interview with ESPNsoccernet, Broughton revealed: "Roy knew when he signed up from Fulham that we were in the process of finding new owners, it was not a surprise to him. He was fully reconciled with the possibility there would be an ownership chance and the risk involved with that.

"But Roy is self confident and was, when he signed up, confident he was capable of doing the job at Liverpool. With that in mind provisions were made in Roy's contract to relate specifically to any change in ownership."

The 'break clause' in Hodgson's contract was revealed by ESPNsoccernet this week, although even then there were no hints that a change in manager was being planned immediately.

"I suggested that the clause relates to Hodgson being paid a full year's salary within 28 days should the new owners want to bring in their own manager," Broughton commented: "I don't have Roy's contract in front of me, so I can't comment on that, but it is something like that in his contract.

"But he came to the club knowing full well the circumstances and the risks attached to it."

Hodgson will have to prove himself to the new owners. Broughton added: "I would full expect Roy to continue as manager and there has been no indication to me to suggest otherwise. However, as we all know, at the end of the day, everything depends on results."

Interest In Aabech

Lyngby striker Kim Aabech is being chased by clubs in England, Germany and Holland, according to his agent.

The 27-year-old striker has been with Lyngby since 2005 and has emerged as one of their prized assets,

Aabech, who looks to play behind a main striker, is now being looked at by a number of clubs.

Liverpool were one of the clubs mentioned in Denmark, but his agent Frank Hansen is not taking that too seriously.

"I've read that [Liverpool's interest] but they are probably just a tad too big, but there is great interest in Kim," Hansen told Tipsbladet.

"There are two Danish clubs that have asked about him, and there are clubs in the Championship, and in Holland and Germany who are considering him."

Young Reds Lose At Blackburn

Liverpool's U18s went down to a 3-2 defeat at Blackburn Rovers on Saturday afternoon.

The young Reds led at the interval thanks to a strike from Adam Morgan and could have been two ahead had Raheem Sterling's earlier effort not been ruled out for offside.

But the home side hit back after the break with an equalising goal from Jamie MacLaren and then took the lead from the penalty spot after a hotly disputed handball decision.

Things got worse for Rodolfo Borrell's men when Matthew Regan was sent off for the Reds, before MacLaren netted again to give Blackburn a two-goal cushion.

Adam Morgan netted his and Liverpool's second late on, but it wasn't enough to salvage anything from the match - and to compound the Reds' misery Craig Roddan was shown a red card after the final whistle.

Premier League Approves NESV's Liverpool Takeover

The Premier League has given the go-ahead for New England Sports Ventures's proposed takeover of Liverpool.

The group has offered £300m for the club but Reds co-owners Tom Hicks and George Gillett oppose the sale as they value Liverpool at double NESV's bid.

If the pair manage to block the deal in the High Court, their holding company could face administration, resulting in a nine-point deduction for the club.

The duo must pay major creditors Royal Bank of Scotland £280m by 15 October.

The Premier League statement read: "The Premier League has met with the owners and directors of New England Sports Ventures (NESV) regarding their proposed takeover of Liverpool FC and has received details, in accordance with Premier League rules, of the proposed company and ownership structure as well as the make-up of the new board."

Americans Hicks and Gillett own Liverpool through their Kop Holdings vehicle and the club is its only real asset.

RBS is owed £240m in loans and £40m in fees and, if Hicks and Gillett manage to block the sale in the High Court next week, they would need to repay or refinance the debt to avoid administration.

Under the terms of the NESV deal that was agreed by the Liverpool board, the co-owners stand to lose about £140m.

Should Kop Holdings be placed in administration, the Premier League board, which comprises chief executive Richard Scudamore, chairman Sir Dave Richards and secretary Mike Foster, would then decide whether to dock points.

Premier League rules state the points penalty can be applied if a parent company insolvency is caused by the club's management.

Liverpool are already in the bottom three of the Premier League after a dismal start to the season, amassing only six points from their opening seven games.

An appeal is likely regardless of the High Court ruling, with no outcome likely before the 15 October refinancing deadline set by RBS.

RBS will have the choice to waive their demand for repayment until the legal dispute is finalized, or call in the debt and place the parent company into administration.

Portsmouth became the first Premier League club to enter administration on 26 February and automatically received a nine-point reduction, condemning them to relegation.

In a similar case, West Ham avoided a penalty when their holding company went into administration in 2009 - that is because the east London club was just one of several interests in the portfolio of Icelandic bank Straumur.

However, also in 2009, Southampton were docked 10 points by the Football League after their parent company Southampton Leisure Holdings went into administration, as a League investigation found they were "inextricably linked as one economic entity". That was a decision taken by the Football League rather than the Premier League.

With the Premier League meeting the owners and directors of NESV in the last couple of weeks, league bosses have confirmed that John W Henry and his board have passed recently changed the 'new owners' and directors' test.

However, BBC Sport understands that the Premier League has yet to see a business plan from NESV and is keen to avoid further embarrassment after a succession of takeovers at Portsmouth failed to solve their financial problems.

If for some reason a deal with NESV is scuppered, BBC Sport sources have learned that the Asian consortium that has also tabled a bid for the Merseysiders could then be in a position to proceed.

But there is no hint of concern over NESV's financial muscle.

The Premier statement continued: "The Premier League is satisfied, with the information provided, that the individuals NESV intend to put in place in the event they complete their takeover of Liverpool FC meet the criteria set out in our owners' and directors' test.

"The board of the Premier League will continue working with Liverpool FC in regard to this process, however, we are aware that the formal completion of this takeover is yet to be resolved and it is therefore inappropriate for us to offer any further comment at this time.”

Liverpool Sale May Collapse If Nine Points Are Deducted

The prospective new owners of Liverpool could be discouraged from buying the club if next week's court action fails to force the deal through and the club is then placed into administration, incurring a nine‑point penalty from the Premier League. Sources close to the Liverpool battle said the loss of nine points, which could sink the team into a genuine relegation battle, would mean "the economics of the club are devastated", and New England Sports Ventures might reconsider its position.

It was previously thought that the Premier League would not deduct nine points, its penalty for clubs which go into administration, because the holding company would be in default, not the club. However it emerged yesterday that the league's chief executive, Richard Scudamore, believes that the holding company's administration cannot be entirely separated from the club, and the nine-point penalty would apply.

NESV is not commenting on the Liverpool situation until it is resolved. However, it would be natural, when considering its position, for the consortium to take account of the dramatically changed circumstances Liverpool would be in if the club lost nine points.

The penalty could be imposed next Friday and, with no further Premier League matches having been played, Liverpool would be bottom on minus three points, eight points behind the two clubs immediately above, Wolves and West Ham United, and nine points from safety.

That would be a huge setback for a club still aspiring to be in the top four, not fourth from bottom, making it almost certain, at the very least, that they would not qualify for the Champions League for the second successive season. Financially, that would have a major impact, and relegation a catastrophic one, so new owners might have to contemplate spending more than they planned on new players in January to ensure Premier League survival.

NESV, which owns the Boston Red Sox, has concluded a deal with the Liverpool chairman, Martin Broughton, to buy the club, a takeover which the Premier League approved in principle yesterday. However the consortium, and its majority shareholder, John W Henry, must wait to see whether a high court judge is prepared to declare that Broughton does have the right to sell the club, against the unwavering opposition of the current owners, Tom Hicks and George Gillett, who are fighting to get some money from their exit out of Liverpool.

If Broughton's court action fails, the £237m owed to Royal Bank of Scotland by Hicks's and Gillett's Liverpool holding company, Kop, falls due next Friday, 15 October. Hicks and Gillett, under financial pressure in the US, are expected to fail to pay, and RBS is currently believed likely to put the club into administration, although the scale of the damage that could do to Liverpool might cause the bank to reassess.

"Going into administration needs to be avoided at all costs, as the negative impact would be catastrophic," Broughton 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."

The whole prospect of NESV reconsidering its position dramatically increases the importance for Liverpool of Broughton succeeding with next week's court action. He will ask the judge, crucially, to declare that as the chairman, he had the sole right to appoint and remove directors, so keeping his majority on the board, with the managing director Christian Purslow and commercial director Ian Ayre. On Tuesday, Hicks attempted to sack those two and replace them with his son, Mack, and Mack's assistant, Lori Kay McCutcheon.

Broughton will also ask for a declaration that Hicks and Gillett cannot block the deal because of undertakings they gave RBS not to obstruct a "reasonable" sale. Hicks argues the deal, which will pay him and Gillett nothing, "dramatically undervalues" Liverpool, so he is fighting to hold out for another deal offering more money.

If Hicks succeeds, Liverpool are expected to be put into administration on Friday, then for RBS to sell the club to NESV for £200m. Yet that would be up for negotiation, and a nine-point penalty could severely affect the outcome.

Red Sox Owners Given Arsenal Tour Ahead Of Anfield Bid

Sport.co.uk can exclusively reveal that the prospective new owners of Liverpool, New England Sports Ventures (NESV), were given a personal tour of Arsenal's Emirates stadium in a bid to learn about the sustainable financial model instigated by the North London club.

NESV, owners of MLB franchise Boston Red Sox, were shown around the Gunners new arena and state-of-the-art London Colney training ground three weeks ago by chief executive Ivan Gazidis as they weighed up their bid for Premier League rivals Liverpool.

Arsenal have been hailed for the successful manner in which they moved from Highbury to the Emirates in 2006, after announcing a desire to move in 1999. The Gunners recorded pre-tax profits of £56 million for the year ending May 31, 2010, with group turnover increasing from £313m to £379.9m. Having recorded a handsome profit on the redevelopment of Highbury into premium real estate, the club also boast an unmatched record for takings on matchdays at their new stadium.

The prospective new owners of Liverpool have promised to free the club from the burden of 'acquisition debt' when they take charge at Anfield. NESV are poised to take control of the ailing Premier League outfit, as soon as a deal can be reached with fellow Americans Tom Hicks and George Gillett.

A statement from NESV read: "NESV wants to create a long-term financially solid foundation for Liverpool FC and is dedicated to ensuring that the club has the resources to build for the future, including the removal of all acquisition debt.

"Our objective is to stabilise the club and ultimately return Liverpool FC to its rightful place in English and European football, successfully competing for and winning trophies.

"Since 2001, New England Sports Ventures has made successful investments in sports and entertainment properties.

"Our portfolio of companies, including the Boston Red Sox and Fenway Park, New England Sports Network, Fenway Sports Group and Roush Fenway Racing are all committed to one common goal: winning.

"NESV wants to help bring back the culture of winning to Liverpool FC.

"We have a proven track record, shown clearly with the Boston Red Sox. The team has won two World Series Championships over the past six years. We will bring the same kind of openness, passion, dedication and professionalism to Liverpool FC.

"We are hopeful with regard to the pending legal and English Premier League procedures now underway, however, in light of these issues, we will respectfully refrain from comment or further actions at this time."

George Gillett’s Role Now Unclear In LFC After Default On £75m Loan

The role of George Gillett in Liverpool Football Club remains unclear as he is in default on a £75m loan he took out to invest in the club.

The loan from Mill Financial, an arm of US hedge fund Springfield Financial Company, should have been paid by the co-owner of the football club.

But it has not been and Mill Financial could take control of his shareholding.

At this stage the company does not appear to be exerting that much influence at Anfield, and has not returned calls from the ECHO, so its intentions are unclear.

Technically, Liverpool view the current legal dispute as a straight fight with Tom Hicks, not Gillett, owing to that £75m loan default.

But despite this debt not being paid, and unconfirmed reports that a US hedge fund took control of his share at Anfield, Gillett carried enough sway to join his co-owner in their attempt to vote Christian Purslow and Ian Ayre off the board during Tuesday’s extraordinary meeting.

For the time being George Gillett remains on the board of Kop Holdings along with co-owner Hicks, chairman Martin Broughton, managing director Purslow, and commercial director Ayre.

When buying Liverpool FC, the Americans set up a complex series of holding companies with an overriding parent company registered in Delaware.

Gillett’s £75m loan from Mill Financial is secured against his 50% share in the Delaware based parent company.

But the £237m RBS debt is secured against Kop Holdings, which sits much further down the line in the hierarchy of holding companies and just one level above Liverpool Football Club company, which ultimately controls the assets of the Reds – the playing squad, stadium, and commercial rights.

As the RBS debt is secured against the company in direct control of LFC it is in the strongest position to be repaid.

The £75m loan from Mill Financial provided the cash that Gillett used to invest in the club and had amounted to his Reds equity.

Liverpool Confident New Owners Can Keep Torres

Liverpool chairman Martin Broughton believes new owner John Henry and right-hand man Tom Werner can convince Fernando Torres and Steven Gerrard that they have a winning mentality, and they should stick around Anfield to see how far they plan to take the team.

As soon as the owners of the Boston Red Sox are installed and running the club, they plan to meet up with manager Roy Hodgson and his key players to convince them of their vision of turning around Liverpool's on-field fortunes.

There has already been speculation that Torres will head off to Manchester City or Barcelona in the summer after Hodgson's disastrous start to the new season, but Broughton has other ideas. Circling clubs are hoping to take advantage of Liverpool's current problems to capture Torres, and Gerrard remains on the radar of Jose Mourinho at Real Madrid and Rafa Benitez at Inter Milan.

Broughton told ESPNsoccernet: "The new owners want to be winners, and Fernando Torres wants to be a winner. They will be well matched. Will Fernando want to stay when he hears what they've got say? Absolutely."

The chairman's plan was to announce the takeover and then engage with all the team to explain to them about the new era at the club. But Broughton explained: "The plan was to get all the players together at the training ground to inform them of events, but then we discovered that most of them had gone off for international duty.

"Christian Purslow has spoken to Jamie Carragher and the few players who have been left. He [Purslow] has also spoken to our manager Roy Hodgson about the ideas and plans of the new owners."