RBS wins Liverpool FC court battle

13th Oct 2010 12:05

The £300m sale of Liverpool Football Club moved a step closer today when the High Court ruled in favour of Royal Bank of Scotland (RBS) and Liverpool chairman Martin Broughton, preventing the club's American owners from blocking the deal.Mr Justice Floyd agreed that Tom Hicks and George Gillett had breached contractual undertakings when they sacked board members to try and stop the sale to New England Sports Ventures.The American pair had requested a delay in the hearing of an application by creditors RBS for mandatory orders.But the judge threw out the request and told them they had no right of appeal, possibly costing them over £140m.They had gained control of the voting by replacing directors Christian Purslow and Ian Ayre with Hicks's son, Mack, and business associate Lori McCutcheon.However, that broke an agreement signed with RBS when the bank extended the duo's credit facilities. RBS will now be able to get its £237m loan back.A new Liverpool board will be put together by club chairman Martin Broughton and a decision made as to who to sell the club to.