Liverpool would almost certainly be docked nine points if the eventual route to ownership for New England Sports Ventures (NESV) involved going into administration. Earlier indications from the Premier League suggested administration of Kop Holdings would not fall foul of insolvency rules on the grounds that the insolvency would apply to the holding company rather than the club itself. However, the situation has been clarified and NESV have been told that administration of Kop Holdings would incur a 9-point penalty.
Liverpool would almost certainly be docked nine points if the eventual route to ownership for New England Sports Ventures (NESV) involved going into administration. Earlier indications from the Premier League suggested administration of Kop Holdings would not fall foul of insolvency rules on the grounds that the insolvency would apply to the holding company rather than the club itself. However, the situation has been clarified and NESV have been told that administration of Kop Holdings would incur a 9-point penalty.
Liverpool chairman Martin Broughton commented, ‘Going into administration needs to be avoided at all costs, as the negative impact would be catatstrophic. Setting aside the deduction, it would have an impact on Liverpool’s value and [the club] would be wide open to predators.’
If Martin Broughton wins the court case against the current owners, now most likely to be held next Tuesday, the club would not have to go into administration.