It is commonly known that Liverpool were born after a dispute over rising rent led Everton to split into two. However, there was much more to it. Why Liverpool’s birth happened may have been because of the dispute, but how Liverpool’s birth happened is a different story.
On January 25th, 1892, a general meeting took place to discuss whether “to consider the advisability of forming the club into a limited liability company to purchase [John] Houlding and [John] Orrell’s lands on the basis of their prospectus, or into a LLC on a smaller capital to lease the present or any other ground.” William Clayton proposed that Everton should reject John Houlding’s offer of becoming a limited liability company on his Houlding’s terms – the proposal was carried. The reason why because he thought that the costs were overpriced – the club would be paying more for the land than what it is actually worth. Clayton consulted a land agent to estimate the price of the land, and the land agent said it would be worth 4 shillings and 6 pence per yard. Houlding wanted to sell the land for 7 shillings and 6 pence per yard – 3 shillings more than its actual worth. Clayton added that if the club members were to accept Houlding’s offer, Everton would have hardly any money left.
Another proposal was made by William Clayton – he suggested that the club should be formed into a limited liability company under the name “Everton Football Club Limited”.
Proposed by Mr. Clayton and seconded by Mr. Atkinson –
That the Club be formed into a Limited Liability Co. under the name of the Everton Football Club Limited.
That proposal was also carried. Afterwards, it was agreed that Everton’s solicitor would be in charge of registering the club and “obtain the necessary signatures from members of Committee or members of the club.” However, a few people decided to ignore the agreement…
Even though it was agreed for a solicitor to register Everton as a limited liability company under the name “Everton Football Club Limited”, some Machiavellian members decided to register the club under a different name and on John Houlding’s terms the day after the general meeting. Everton were about to be registered under its agreed name but before it could happen, the registration was denied because there was already a limited liability company with a very similar name. Unsurprisingly, William Clayton wasn’t happy.
Motion by Mr. Clayton:
Resolved that we condemn the action of the members of Com. & members of the Club who have signed memorandum of association registering the Everton Football Club & Athletic Grounds Co. Limited, such action being take with the intention of frustrating the resolution of the members of the club in meeting assembled.
Everton Minute Books – 2nd February 1892
John Houlding was legally (albeit deceitfully) in possession of the Everton name. However, Clayton, George Mahon and co soon had a lifeline. The FA was on Everton’s side.
This council, in accordance with its past decisions, will not recognise or accept the membership of any club bearing a name similar to the one already affiliated with this Association, and in the case of the Everton club, will only recognise the action of a majority of its members at a duly constituted meeting.
Liverpool Mercury, 4th February 1892
This means that there were two Evertons. The FA would only recognise the Everton as we know it, not Houlding’s Everton, because the FA and the Football League said that Everton should be controlled by the majority, not Houlding and his supporters because there wasn’t enough signatories (and by some distance, too.) Following Houlding’s scheming, the club decided to remove him from the board, as well as a couple of his companions. There was also a suggestion proposed by Houlding’s supporters to merge the two Evertons, but to no avail.
The members of the Everton Club […] were summoned by two requisitions, one being from the Houldingites, who modestly sought to rescind all previous resolutions, and that the “Everton Football Club” should amalgamate with the “Everton Football Club and Athletic Grounds Company, Limited,” and stay where they are at present; that the other requisition came from the anti-Houldingites, and asked for the removal of Mr. Houlding from the presidency, and Messrs. Nesbit and Howarth from the committee; that the first named requisition was rejected by an overwhelming majority, and the last-named request agreed to, so that Mr. Houlding and his advocates have been dethroned, and the transfer to the new quarters simplified; that Everton look with confidence next season.
Lancashire Evening Post, 19th March 1892
At a meeting of the members of the Everton Football Club, the suggestion to amalgamate with the Everton Football Club and Athletic Grounds Company, Limited, was not entertained; and a resolution that Messrs. John Houlding, Alex Nisbet, and T.C. Howarth, having lost the confidence of the members of the club, be respectively removed from the presidency and committee was adopted.
Liverpool Mercury, 16th March 1892
John Houlding and co were subsequently removed from the board. Houlding’s Everton was then re-registered and the club’s name was changed to “Liverpool Football Club”. And the rest is history.