Liverpool owners try to block bids, dump officials

Liverpool's crisis escalated Tuesday after the debt-ridden club's American owners opposed two new takeover bids and attempted to remove two senior board members.

Co-owners Tom Hicks and George Gillett Jr. won't accept either bid because they would not earn a significant profit. The bidders are only willing to pay about 300 million pounds ($477 million). The club's debt has grown to 285 million pounds and is due to be repaid by Oct. 15.

One offer is from New England Sports Venture - the owners of the Boston Red Sox baseball team - with the other from an Asian investor, a person familiar with the situation said. He spoke on condition of anonymity because the names of the bidders aren't being publicly discussed. Red Sox president Larry Lucchino declined comment on whether his team was involved in a bid.

Before a meeting Tuesday to discuss the offers, the owners unsuccessfully tried to remove managing director Christian Purslow and commercial director Ian Ayre from the board and install one of Hicks' sons and a financial controller from his company.

Purslow, Ayre and chairman Martin Broughton want to pursue negotiations with the bids and are now considering legal action against Hicks and Gillett.

"The board of directors have received two excellent financial offers to buy the club that would repay all its long-term debt," the statement said. "A board meeting was called today to review these bids and approve a sale. Shortly prior to the meeting, the owners - Tom Hicks and George Gillett - sought to remove managing director Christian Purslow and commercial director Ian Ayre from the board, seeking to replace them with Mack Hicks and Lori Kay McCutcheon.

"This matter is now subject to legal review and a further announcement will be made in due course. Martin Broughton, Christian Purslow and Ian Ayre continue to explore every possible route to achieving a sale of the club at the earliest opportunity."

The turmoil comes after Liverpool lost to unheralded Blackpool on Sunday to confirm the club's worst start to a league season since 1953. Liverpool hasn't won in five matches in all competitions and will remain in the relegation zone for at least two weeks. The team was also recently knocked out of the League Cup by Northampton, a club struggling in the fourth tier of English football.

A group of Liverpool celebrities has appeared on a video playing on the Internet pleading with Hicks and Gillett to leave the club.

Hicks and Gillett were forced to put the club up for sale in April after struggling to meet the repayments resulting from their 2007 leveraged takeover. Hicks wants to sell for about 600 million pounds, a figure that has forced several investors to end their interest.

Archive