The co-owners of Liverpool Football Club will block the £300m acquisition by the owner of the Boston Red Sox as they have decided to challenge the deal in the High Court.
Tom Hicks and George Gillett decided to oppose the deal as they claimed the board that approved the acquisition was changed before the sale. Hicks and Gillett are the American owners of the premier football club that has seen its fortunes dwindling in recent years.
Chairman Martin Broughton refuted the statements by the co-owners and said they did not have the authority to change the positions on the board. The High Court will hear the case next week.
The acquisition deal was endorsed by board chairman Martin Broughton, managing director Christian Purslow and commercial director Ian Ayre, the trio outvoted Hicks and Gillett in agreeing the sale.
The co-owners claim that they replace the board before the signing of the deal. A move that Hicks say was according to the legal framework of the club although the board was not agreed to the transaction.
Hicks and Gillett do not agree to the deal with the New England Sports Ventures as they think that it seriously undervalues the club and they would lose up to £140m if the deal finalizes.
If the co-owners get favorable ruling then they will have to repay up to £240m of loans and £40m of fees they owe to the Royal Bank of Scotland before the October 15 deadline. There is a possibility that the bank takes control of the club and allow the deal with the Red Sox to complete.
