American court injunction blocks Liverpool sale

A court in Texas last night prevented the sale of Liverpool football club going through. The temporary injunction was issued by the American judge in response to a suit filed by Liverpool's existing owners Tom Hicks and George Gillett against the Royal Bank of Scotland, the Liverpool board and prospective owners New England Sports Ventures [NESV] group. The suit also seeks damages of approximately £1 billion. Hicks allegedly says in the suit that the attempt to sell Liverpool for £300m is an undervaluation that represents an "epic swindle". 

The startling twist came at the end of a dramatic day in which it seemed the deal was all but done. But news of the injunction reached Liverpool at around 10pm last night, just as John W Henry of NESV arrived at Anfield to finalise the sale.

Earlier in the day the High Court in London had ruled against Hicks and Gillett's attempt to prevent the sale with Mr Justice Floyd sanctioning the deal, saying that the two Americans had acted in breach of undertakings made to the Royal Bank of Scotland when they blocked the sale to NESV. The judgment seemed to pave the way for what was hoped would a sale by Sunday's Merseyside derby against Everton.

But Hicks and Gillett had other ideas and in a move that stunned the Liverpool board and NESV the pair sought an injunction from a Dallas Court. The Daily Telegraph quotes a source close to Henry as saying he was "in a state of disbelief" at the actions of Hicks and Gillett, while the Liverpool Board could barely contain its collective anger in a statement released late last night: "Following the successful conclusion of High Court proceedings today, the Boards of Directors of Kop Football and Kop Holdings met tonight and resolved to complete the sale of Liverpool FC to New England Sports Ventures," ran the statement.

"Regrettably, Thomas Hicks and George Gillett have tonight obtained a Temporary Restraining Order from a Texas District Court against the independent directors, Royal Bank of Scotland PLC and NESV to prevent the transaction being completed. The independent directors consider the restraining order to be unwarranted and damaging and will move as swiftly as possible to seek to have it removed."

It's believed that in bringing the suit in a Texas Court, Hicks and Gillett' plan is to put RBS and NESV in contempt of American courts, something that would have serious implications for their business interests. The question they and the Liverpool Board must find an answer to is just how much jurisdiction does a Dallas court have over a football club in Merseyside? ·