Today’s Interview With Martin Broughton – Full Transcription

Martin Broughton’s interview with Sky Sports on the huge news of the “sale” of Liverpool Football Club.

Interviewer: You said this morning that you were delighted to conclude the sale of the club to New England Sports Ventures, but in reality you haven’t concluded this deal at all. How much of a delay might there be before Liverpool genuinely does have new owners?

Broughton: You’re right. We’ve agreed a sale, but it’s subject number to a number of things, normal things, like Premier League approval, but the other one is effectively a declaratory judgement from the court that we’ve entered into it [the sale] on a valid basis. It’s likely to take about a week I would think. I would hope we get the judgement by the end of next week. [October 15th]

Interviewer: And the legal challenge that the existing owners have indicated they will pursue to block this deal? Can you tell us about the process that will involve and why you think you’ve got such a strong case against that challenge?

Broughton: Well first of all it’s a great pity they’ve done this. This was their last chance to leave Liverpool with their heads high. It’s a pity they’ve chosen to go down this route. It’s a difficult issue, I don’t want to get into the detail, but part of the terms of me taking on the role (and I was appointed by Tom & George), was that they gave a written undertaking that only I could change the board. And they wrote that into the articles of the two companies, Kop Football and Kop Holdings (the two holdings companies), both of these were given to RBS. They gave an undertaking that they would not interfere and frustrate any reasonable sale. And this is frankly a flagrant abuse of those two written undertakings.

Interviewer: You’ve had many false starts during the six months you’ve been Chairman, bidders from China, Kuwait, India, America have all came and gone. What is it that’s persuaded you this is the most appropriate new owner for this football club?

Broughton: First of all a lot of those  ‘false starts’ were not actual bidders. They were potential bidders and in some cases mirages. These two bidders are the two who at the end of an exhaustive process -and you have to be living on planet Zog to not know the club is for sale. We’ve contacted hundreds of different people and some have contacted us directly. At the end of that process we had two valid bids, both from excellent prospective owners, who were competing with each other which I think demonstrates exactly what the market price is.

Interviewer: And how much is that market price? What has New England Sports Ventures agreed to pay?

Broughton: £300 million effectively. £200 million in writing down all of the acquisition debt, taking on some of the additional working capital debts etc and other liabilities. So it’s £300 million all together.

Interviewer: There have also been a very significant amount of bank fees accumulated over the course of the current owners ownership of Liverpool – tens of millions of pounds. What is going to happen to the fees that have not yet been paid? Will the new owners be liable for those bank fees?

Broughton: That is a matter that is confidential between RBS and the owners.

Interviewer: In terms of the assurances that the new owner has given you to persuade you they are fit and proper owners of Liverpool Football Club – Can you explain in detail exactly what New England Sports Ventures has pledged to do in terms of  investment in a new stadium and also on the playing side of the club?

Broughton: Well I think quite rightly, they don’t want any hostages to fortune. They’ve seen those in the past. They want to be judged by what they do rather than what they say. They can demonstrate what they plan to do by looking at what they’ve done. If you look at the Boston Red Sox as a classic example of taking a very famous, traditionally historic, major team which as seen better days and restored them to former glory is a parallel that demonstrates action. Their mentality is all about winning. All about winning. They have invested a lot of money in players there, they have committed to making the necessary investment in players at Liverpool. At Fenway, they actually chose not to build a new stadium (though everyone said that was what was needed) they looked at that option, they then looked at the option of restoring and renovating Fenway, which they did to the tune of £200+ million, very effectively, One of their members built a new stadium at Baltimore. They have built stadiums and they have restored stadiums. They want to make sure on the stadium that they do the right thing, they haven’t committed yet to which is the right thing. We will have a stadium of more than 60,000. Whether it’s a new stadium or not – that’s not a commitment. Will we have stadium development? Yes.

Interviewer: Over what timetable has the new owner committed to delivering a new stadium for Liverpool fans?

Broughton: A short timetable.

Interviewer: A couple of years?

Broughton: No hostages to fortune, they’re here to look at the club, to understand the club, they will get close to the supporters, the players, the council, they’ll listen to lots of people and they will take the appropriate action. Just as they have in Boston. We will get substantial stadium development, yes.

Interviewer: Is it conceivable that may  focus on development of the existing stadium?

Broughton: It’s conceivable, yes.

Interviewer: In terms of your own future – you were brought in by the current owners, soon to be previous owners, to handle a sale of the club. Will you be staying on to supervise the transition to the new ownership? And then what about after that?

Broughton: First of all I’ve got to complete this process. I’m available to complete the transition process. My role was to come in find the right buyers and hand over to the right buyers. That’s what I see my role as.

Interviewer: In terms of what you describe as the ‘necessary investment’ in players -Liverpool have had their worst start to a top-flight season in more than half a century- do you believe that with the new owners in place there will be substantial investment in players by the time the next transfer window opens?

Broughton: Yes. I think there’ll be money available at the next transfer window. There’s been a huge amount of negativity around Liverpool, there’s uncertainty, the fans demonstrating against the owners, you can frankly see the negativity in some the players, they look like they have the world on their shoulders. Yes there will be money available for investment in the squad, but there is also now a positive impetus for the fans to get behind, the players to get behind and the manger to get behind, to understand that there is a bright new future. Let’s commit to it together.

Interviewer: What else can you say to Liverpool fans who are weary of the promises from new owners, and the potential concern that the the loathed American owners are being replaced by more American owners?

Broughton: First of all, there’s nothing wrong with being American. Ask Sunderland, Ellis Short is a great owner there. There’s nothing wrong with being American. Leverage is a problem in a football club. Wherever you come from you need the right people. These are the right people. My message is ‘keep the faith’, we said we would give you the best owners, I honestly believe we’ve delivered the best owners. I understand their frustration, a fan wants to know what’s going on. But I’ve always believed the best way to deliver this deal was to do develop it in private and not in the public gaze. So I apologise for not giving a running commentary, but I said I wouldn’t give a running commentary. I say to the fans: keep the faith.

Interviewer: Your board meeting discussed two equally credible bidders, are you prepared to share the identity of that other bidder?

Broughton: No, I don’t think that would be appropriate.