Liverpool: Between a Rock and a Hard Place!

LIVERPOOL FC is a proud and storied, champion football team. The club has won a record eighteen league titles, seven FA Cups and seven League Cups (currently called the Carling Cup after its sponsor). Liverpool is one of the most successful clubs in English football, also one of the wealthiest and most widely supported football teams in the world. The club is the most successful English club in European competition, having won five European Cups and three UEFA Cups.

BUT their last two seasons have been a massive disappointment. 2009-10 was a frustrating season for the Reds, who underperformed for most of the season and finished 7th in the Premier League, their worst finish since 1999. This was not good enough for their fans and owners, who haven't won the Premier League since 1990. Rafael Benitez, under increasing pressure throughout the season as results continued to slide, finally left the club in June, 2010 by mutual consent.

ROY HODGSON was appointed manager a few weeks later, in time to start fresh for the new season. The former Fulham coach was seen as an inspired choice, one seen as changing the fortunes of the slumping team. However, his appointed to drink from the poisoned chalice as Liverpool has become has seen Liverpool drop into the relegation zone, third from bottom, with only six points from seven games. The Red's fans are seeing red, if you know what I mean.

IN THE MIDST of this awful start comes a new controversy. This is in the form of a takeover bid for Liverpool by the owners of the Boston Red Sox baseball team. In fact, Liverpool's board have agreed to sell the club to John Henry's New England Sports Ventures group, though the current owners, Tom Hicks and George Gillett, have said that they intend to oppose the deal, which they say dramatically undervalues the club.

I PREDICT that Hicks and Gillett will lose their battle. They are universally despised by the Liverpool faithful. But event more importantly, the Royal Bank of Scotland is owed £237m ($378m) in debt and they want their money, now! They have threatened to put the club into administration if the offer from Henry is not accepted. The result of administration would see the English Premier League dock 9 points from the club's results for the season, which on current form, would pretty much doom them to relegation. This something all parties would want to avoid.

IN MY VIEW, this puts the current owners on the rack. They will try their hardest to delay administration and anything like it. Only by attrition can they hope to get a better deal. And they need a better deal, because the NESV will leave them with almost nothing for their personal investment in Liverpool. Sad but true. Hicks and Gillett not have to face the fans and the RBS, but their own board is hostile. The NESV plan is great for the club but terrible for the owners. But with the weight of administration and green light from the board will see Henry and his team owning Liverpool within the week.