Liverpool appoint Martin Broughton as chairman to oversee sale of club

Tom Hicks and George Gillett today formally announced the beginning of the end of their turbulent ownership of Liverpool with confirmation they have put the club up for sale and appointed the British Airways chairman, Martin Broughton, to oversee the process.

Broughton has been appointed Liverpool's new independent chairman with immediate effect while Barclays Capital have replaced Rothschild and Merrill Lynch, the Americans' previous choice of bankers, to conduct the search for new investment. Also as expected, and in an indication Hicks and Gillett do not anticipate a swift exit from Anfield after three controversial years at the helm, the co-owners confirmed they have "the full support of its existing bankers [Royal Bank of Scotland and Wachovia] for this process".

Hicks and Gillett are understood to have agreed a six-month extension to their refinancing deal with the RBS and Wachovia. There have also been reports of a three-year, £300m refinancing package with Barclays, denied by Anfield officials and sources close to the Americans.

The Americans have consistently made it clear they value Liverpool in the £500m bracket and recently allowed a deadline to pass from The Rhône Group on their offer to purchase a 40% stake for £110m. Despite interest from several parties since managing director Christian Purslow launched his search for new investors last year, The Rhône Group are the only party to have made an official bid so far.

The refinancing extension removes the threat of a fire-sale of key assets such as Fernando Torres and Steven Gerrard this summer as, under their last arrangement with RBS, Hicks and Gillett had to reduce the club's £237m debt by £100m before July. Whether significant transfer funds will be available to convince manager Rafael Benítez, Torres and Gerrard to remain committed to Anfield remains to be seen, however. Today's statement added: "The Club ... has financing in place which will fully support the Club's operations."

Broughton's arrival will at least end the state of paralysis that has existed inside the Anfield boardroom since Hicks and Gillett's business relationship broke down within a year of their takeover from former majority shareholder, David Moores. Major decisions, such as on the proposed new stadium, the prospective sale of their individual shareholdings and the tenure of former chief executive Rick Parry, have been postponed or delayed since late 2007. The Americans had a veto to block the other's proposals, but this has now been removed and a new five-man board – comprising Broughton, Hicks, Gillett, Purslow and commercial director Ian Ayre – will be able to vote on the club's future direction.

The statement confirming the Americans' intention to quit highlighted the increase in revenues and operating profits during their time in charge. Club revenue has increase by 55% since 2007, although the statement made no mention of Benítez having to sell before he could buy in recent transfer windows and the team's subsequent struggle to reclaim a place in the Champions League.

"Owning Liverpool Football Club over these past three years has been a rewarding and exciting experience for us and our families," claimed the co-owners, whose tenure has resulted in mass protests outside Anfield and prompted security operations on their visits to the stadium.

"Having grown the Club this far we have now decided together to look to sell the Club to owners committed to take the Club through its next level of growth and development. We are delighted that Martin Broughton has agreed to take the position of Chairman, working alongside the club's excellent senior management team. Martin is a distinguished business leader of excellent judgment and with a great reputation. He is a genuine football supporter and will seek to oversee the sales process in the best interests of the Club and its supporters."

Liverpool's new chairman added: "I will run this sale process in the right way, for the benefit of the Club and its fans. Liverpool is one of the world's greatest clubs and my aim is to try and ensure that we find new owners who are able to build on the Club's recent improved financial performance in order to help deliver sporting success."