Slaughters and US law duo advise on Liverpool takeover boardroom battle
A raft of law firms are advising on the potential sale of Liverpool Football Club to Boston Red Sox owners New England Sport Ventures (NESV), amid a boardroom wrangle at the club. Slaughter and May, Weil Gotshal & Manges and Shearman & Sterling are advising the Liverpool board, US owners Tom Hicks and George Gillett and NESV respectively on the proposed takeover.
October 06, 2010 at 09:07 AM
3 minute read
A raft of law firms are advising on the potential sale of Liverpool Football Club to Boston Red Sox owners New England Sport Ventures (NESV), amid a boardroom wrangle at the club.
Slaughter and May, Weil Gotshal & Manges and Shearman & Sterling are advising the Liverpool board, US owners Tom Hicks and George Gillett and NESV respectively on the proposed takeover.
The total deal is valued at almost £300m, covering £237m in loans and £40m of fees thought to be owed to Royal Bank of Scotland.
However, the takeover is dependent on the resolution of a dispute between the Liverpool board, which supports the sale to NESV, and owners Hicks and Gillett, who believe the offer undervalues the club.
Weil Gotshal is not advising Hicks and Gillett on the dispute due to potential conflicts, and it is understood that another firm has been recommended by Weil to act on the dispute.
In a statement issued today, Liverpool chairman Martin Broughton said: "The board decided to accept NESV's proposal on the basis that it best met the criteria we set out originally for a suitable new owner."
"By removing the burden of acquisition debt, this offer allows us to focus on investment in the team. I am only disappointed that the owners have tried everything to prevent the deal from happening and that we need to go through legal proceedings in order to complete the sale."
Yesterday (5 October) Hicks and Gillett attempted to remove managing director Christian Purslow and commercial director Ian Ayre from the Liverpool board, and replace them with Hicks' son Mack Hicks and Lori Kay McCutcheon, a vice president at Hicks Holdings, in a bid to retain control of the club.
In an interview today, Broughton said: "Part of the terms of me taking on the role [of chairman] was that [Hicks and Gillett] gave a written undertaking that only I could change the board and they would not interfere and frustrate any reasonable sale. And this is frankly an abuse of these undertakings."
The sale is also conditional on a court judgment. Broughton added: "The key issue is the court, which should meet I would think next week sometime. That is the most likely time, in short order." The deal will also require Premier League approval.
Earlier this month RBS moved the £237m debts to a team dedicated to toxic assets, a move which suggested it was intending to force a sale.
This resulted in Hicks approaching the debt restructuring arm of Blackstone in an attempt to secure the funds required to repay the club's debt to RBS by the mid-October refinancing deadline, despite strong objections from Liverpool supporters' groups keen to see the club taken under new ownership.
Hicks and Gillett took control of Liverpool in a 2007 takeover which handed lead roles to Allen & Overy (A&O) and DLA Piper.
A&O London corporate managing partner Andrew Ballheimer advised Kop Football, which was set up by Hicks and Gillett to complete the takeover, but the magic circle firm is not involved in the current sale of the club.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllA&O Shearman, White & Case Advise on €1.2B Public Takeover of German Steel Giant Salzgitter
3 minute readHengeler Advises On €7B Baltica 2 Wind Farm Deal Between Ørsted and PGE
2 minute readSlaughter and May and A&O Shearman Advise as Latest UK Company Goes American
3 minute readTrending Stories
- 1Public Notices/Calendars
- 2Wednesday Newspaper
- 3Decision of the Day: Qui Tam Relators Do Not Plausibly Claim Firm Avoided Tax Obligations Through Visa Applications, Circuit Finds
- 4Judicial Ethics Opinion 24-116
- 5Big Law Firms Sheppard Mullin, Morgan Lewis and Baker Botts Add Partners in Houston
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250