Early History of Liverpool FC

Liverpool F.C. was founded after an internal dispute within Everton F.C. The dispute was between the Everton F.C. committee and brewer John Houlding, the landholder of the Anfield ground and president of Everton F.C.
The Everton committee viewed Tory councillor Houlding as having a personal financial and political agenda. There was a sharp conflict on the business model of how the club was run. Relations were cold once the Everton committee saw Houlding's intentions and moves.
Anfield was owned by Houlding one year after Everton moved in. Houlding bought the land from its owner, John Orrell. Everton initially made a donation to a local hospital in lieu of rent. After one year they were paying rent to their own president. Orrell owned the adjacent land.^[1] Houlding had sole lucrative selling rights on all refreshments at the ground.^[2]
The largely Methodist based politically Liberal leaning Everton F.C. committee were uneasy with this, especially the potential selling of alcohol. This would take revenue away from the club. Houlding also increased the rent from £100 to £250 per year, after Everton came 2nd in the second Football League season, 1890. Everton offered a compromise of £180. An international match was hosted, England vs. Ireland indicating the quality of Anfield at the time. The rent was not a major issue as the club's profits were substantial. However, from paying a small contribution to a local hospital, Everton five years later was paying £250, a substantial sum in those days.
Orrell, who still owned the adjacent land, then took steps to exercise his legal right to run a road through the new main stand to access his property. This effectively meant that Everton would need to buy or rent both Anfield and Orrell's land. Everton committee members accused Houlding of having known of the legal right of way before allowing the new stand to be built. The committee wanted Houlding to negotiate on the combined Anfield and Orrell's land rent of £370 or the purchase of both, but were told the rental fee was non-negotiable. Houlding refused to give Everton FC a contractual rental lease.^[3] Houlding did not negotiate with Everton who had already made a plan to move to Goodison Park on the north side of Stanley Park. After Houlding attempted to hijack the club undiplomatically serving a notice to quit to force their hand, Everton enacted their plan to move to Goodison Park.^[2][4][5]
The original name of Liverpool F.C. was Everton F.C. and Athletic Grounds, Ltd., or Everton Athletic for short, adopting blue. The Athletic in the name was to fulfil Houlding's plan to make Anfield into a football and athletics ground, which never materialised.
However, on 4 February 1892, the Football Council decided that it would not approve the creation of another club named Everton, on the basis that the name bears resemblance to an existing member. Liverpool F.C. was formally established on 15 March 1892, while Everton were still occupying and playing at Anfield, in an attempt by Houdling to hijack the club. Houlding wanted to take over Everton's fixtures and position in the Football League. Liverpool F.C. and Athletic Grounds Ltd was officially recognized by the Football Council in June 1892, three months after the club was established.^[6]
The root of the dispute was fundamental differences of ownership. Houlding wanted ownership to be within a small group of people, giving annual returns. The Everton Committee wanted a large spread of ownership, via shares, as it was viewed as a community club. On moving to Goodison Park Everton issued 5,000 shares for fans. The directors owned 6% of the club. Liverpool F.C. stayed largely owned by a few people in the corporate model with the directors owning 52% of the club, and has remained so throughout its history. Everton played its last home match at Anfield on 18 April 1892 vs. Bolton Wanderers F.C.

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