LONDON -- Liverpool's board agreed to sell the debt-riddled English Premier League club to the owners of the Boston Red Sox on Wednesday, although legal action may be needed to force the existing American owners out.
Current co-owners Tom Hicks and George Gillett Jr. said Tuesday they would resist the bid from New England Sports Ventures, which owns the Red Sox, and a separate bid from Asia because both "dramatically undervalue" the 18-time English champions.
Hicks is the former owner of the Texas Rangers and currently owns the NHL's Dallas Stars. The Rangers filed for Chapter 11 bankruptcy protection in May and were purchased at auction in August by a group headed by baseball Hall of Famer Nolan Ryan.
The Red Sox owners offered to pay about $477 million (300 million pounds) for a club with debts of $453 million (285 million pounds) that must be repaid by Oct. 15, a person familiar with the situation said. The person spoke on condition of anonymity because financial details aren't being discussed publicly.
Despite the opposition of Hicks and Gillett, who own all the shares in Liverpool, Boston's offer was accepted by the non-owner board members: Liverpool chairman Martin Broughton, who was hired by Hicks and Gillett in April to sell the club; managing director Christian Purslow; and commercial director Ian Ayre.
"I am delighted that we have been able to successfully conclude the sale process which has been thorough and extensive," Broughton said. "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."
Broughton said that New England Sports Ventures "best met the criteria we set out originally for a suitable new owner."
"NESV's philosophy is all about winning and they have fully demonstrated that [with the] Red Sox," Broughton said. "We've met them in Boston, London and Liverpool over several weeks and I am immensely impressed with what they have achieved and with their vision for Liverpool."
Before a board meeting Tuesday to discuss the offer -- as well as the bid from Asia -- the current owners unsuccessfully tried to remove Purslow and Ayre from the board and install one of Hicks' sons and a financial controller from his company.
Hicks wants to sell for about $955 million (600 million pounds), a figure that has forced several investors to end their interest. The owners bought the club in 2007 for 74 million pounds, taking on 44.8 million pounds of liabilities.
"The owners have invested more than $270 million in cash into the club. And during their tenure, revenues have nearly doubled, investment in players has increased and the club is one of the most profitable in the [Premier League]," Hicks and Gillett said in a statement. "As such, the board has been presented with offers that we believe dramatically undervalue the club.
"To be clear, there is no change in our commitment to finding a buyer for Liverpool Football Club at a fair price that reflects the very significant investment we've made. We will, however, resist any attempt to sell the club without due process or agreement by the owners."
A finance expert in the sport said the new owners will struggle to restore Liverpool as a major soccer power unless they follow their initial purchase with heavy investment.
Joe McLean, a partner at the accounting firm Grant Thornton, said a new, larger stadium to replace Anfield would have to be a priority after Hicks and Gillett failed to make good on their promise to improve upon Liverpool's aging 45,362-seat arena.
That could cost as much as $635 million (400 million pounds), but McLean said it is essential if the club is to start matching the likes of Manchester United and Arsenal in terms of match day revenue.
"It would only be a good deal if they could follow up their initial investment with more substantial investment," said McLean. "The problems didn't start with Hicks and Gillett. The whole structure is flawed. Manchester United, Chelsea and Arsenal are pushing ahead and Liverpool is falling behind with each game they play."
The turmoil comes after Liverpool lost to Blackpool on Sunday, continuing the club's worst start to a league season since 1953. Liverpool hasn't won in five matches in all competitions and is currently in the Premier League's relegation zone. The team was also recently knocked out of the League Cup by Northampton, a club struggling in the fourth tier of English soccer.
Broughton, who is on the three-man board that has approved the sale to NESV, said the club will default on its debt if the takeover is blocked.
"We don't have the capacity to repay our loans," Broughton said. "I don't want to speak for RBS [Royal Bank of Scotland] and what they plan to do at that stage.
"It would be serious. The impression I get from the fans is they would actually swallow that to get rid of the owners, but we don't want to swallow that."
Broughton said he was confident of winning any court case necessary to force through the sale against the wishes of Hicks and Gillett.
If Liverpool fails to repay its debt to Royal Bank of Scotland or present the lender with a viable plan, the bank could take control or force the business into a form of insolvency known as administration.
The Red Sox ownership signaled its soccer interest last summer by hosting an exhibition match between Celtic and Sporting Lisbon at Boston's Fenway Park.
The Red Sox ownership group, which bought the MLB team for $660 million in 2002, is headed by financial trader John Henry, with two other principals: Tom Werner, who made his money producing hit shows on U.S. television; and Larry Lucchino, a longtime baseball executive.
While the Red Sox won the World Series in 2004 and 2007 -- its first titles since 1918 -- this season the team was decimated by injuries, finished third in the AL East and failed to make the playoffs.
One of the priorities at Liverpool will be to replace the crumbling 45,000-capacity Anfield with a newer and bigger stadium.
Fenway Park is the oldest ballpark in the major leagues, having opened in 1912, and has the smallest capacity at 37,000.
But rather than push for a new ballpark, which would be difficult to construct in downtown Boston, ownership has spent millions in renovations and added about 4,000 seats since buying the team.
Information from The Associated Press was used in this report.
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