Liverpool points deduction a 'risk'
Initially it had been thought the Premier League would not penalise the club for Kop Holdings becoming insolvent, but now the threat of a points deduction has become a serious one. The Royal Bank of Scotland could put Kop Holdings, the company owned by Tom Hicks and George Gillett, into administration if the Americans continue to block a takeover by New England Sports Ventures and have not paid off their £280million debt to the bank by October 15. Under Premier League rules, the fact that the holding company is solely concerned with the ownership of Liverpool and football-related matters could trigger the nine-point penalty. An insider said: "It is not completely clear whether the nine-point penalty would come into play but it would be a risk." West Ham has been used as an example of why the Reds might escape a deduction if administration goes ahead when it was owned by Icelandic bank Straumur. However, the Hammers were a solvent part of a whole portfolio of different companies while Kop Holdings is solely concerned with Liverpool. Hicks and Gillett's legal action against the proposed takeover will begin in the High Court next week.