Everton face a new wave of uncertainty following the collapse of US billionaire Dan Friedkin’s takeover attempt.
Friedkin’s withdrawal came after a month of exclusive talks, driven by concerns about the club’s mounting debt. This development has plunged the Merseyside club back into turmoil, exacerbating an already turbulent period.
Friedkin’s decision to end the takeover talks followed a due diligence process that revealed the significant financial exposure at Everton.
The group deemed the cost of completing the deal too high; particularly after the complications arising from a failed takeover attempt by American investment firm 777 Partners.
During their six-month negotiation period with Everton, 777 Partners invested approximately $258 million to cover operational costs, anticipating a successful acquisition.
However, issues with 777’s other financial assets led to the deal’s expiration without agreement.
Friedkin’s potential acquisition was seen as a beacon of stability for Everton. His management of Roma in Serie A had garnered praise for its success and strategic foresight.
His withdrawal, therefore, represents a significant setback for Everton, which has been eagerly seeking financial stability and visionary leadership.
A statement from the Friedkin Group and Everton confirmed the end of their negotiations, emphasizing that both parties had entered discussions in good faith.
Despite the disappointment, the Toffees officials maintain that there are other interested parties ready to revive talks to purchase some or all of Farhad Moshiri’s stake in the club, Sky Sports say.
Despite the recent developments, they assert that the club’s financial position remains manageable.
However, sources close to another potential consortium, led by Everton supporters Andy Bell and George Downing, indicate that they do not plan to revive their bid.
This consortium had previously invested considerable time in attempting to convince Moshiri to back their project. Nonetheless, Friedkin’s withdrawal and the underlying reasons have deterred them from pursuing the acquisition further.
Everton’s financial struggles are not new. Last season, the club faced multiple point deductions from the Premier League due to exceeding permissible losses; it culminated in an overall penalty of eight points by April.
These financial woes have significantly impacted the club’s performance and standing.
Despite the collapse of the takeover, there is a silver lining concerning the ongoing construction of Everton’s new stadium at Bramley-Moore Dock. The Friedkin Group has played a pivotal role in this project, paying off a $130 million loan to MSP Sports Capital, which was crucial for the stadium’s development.
The $646 million stadium is slated to open for the 2025-26 season, and the Friedkin Group remains committed to the club as a lender.
The end of the exclusivity period with the Friedkin Group has reopened the race for Everton’s takeover.
Football insiders, including Alan Myers, suggest that John Textor and the Manoukian Group, both previously interested in acquiring Everton, may re-enter the fray.
Myers emphasized that the outcome will depend on who is willing to meet Moshiri’s valuation and take on the existing debts, including those owed to 777 Partners.
Myers expressed his belief on X that either Textor or the Manoukian consortium could emerge as serious contenders: “It wouldn’t surprise me if the Manoukian group and Textor come back; in the end, it’s who’s willing to pay the money.”
Photo credit: IMAGO / PanoramiC
