Everton are facing a critical juncture in their storied history as they grapple with significant financial challenges and an uncertain ownership future. Football Insider revealed that the club may need to secure a new lender for the debt owed to the Friedkin Group; especially if a takeover isn’t completed before the end of the upcoming season.
The Friedkin Group, led by Dan Friedkin, entered into an exclusivity agreement with Everton‘s current owner, Farhad Moshiri, in June. This agreement was to acquire Moshiri’s 94.1% stake in the club. However, concerns related to the loan by the former prospective owner, 777 Partners, have been a significant stumbling block; ultimately leading to the collapse of the deal.
The Texas-based Friedkin Group has been instrumental in providing financial support to the Toffees. This includes a $256 million loan used to repay MSP Sports Capital, another firm that previously attempted to acquire Everton. The loan also provided working capital essential for completing the new stadium development at Bramley-Moore Dock. The club owner, Blue Heaven Holdings, and the new stadium will serve as collateral for the financing.
Under the terms of the loan agreement, Friedkin could potentially seize control of these assets if the debt remains unpaid by the end of the upcoming season. However, the report claims that Moshiri is “highly unlikely” to sell or find a new lender willing to take over the debt in the next nine months.
Despite the failed takeover, the relationship between Everton and Friedkin remains intact. The English side acknowledged Friedkin’s crucial role in enabling the new stadium to be built in a statement confirming the end of takeover talks. Thus, the American group will continue to be a lender to the club.
Former Everton CEO Keith Wyness has publicly blamed Moshiri for the collapse of the Friedkin deal. Wyness suggested that Moshiri should have heeded earlier warnings about 777 Partners.
The Miami-based 777 Partners had reached an agreement in principle with Moshiri last September. Nonetheless, they failed to complete the takeover due to financing issues.
Due to the proposals’ failure, Everton is presently in a difficult financial situation; the club owes more than $768 million to three outside lenders. Moshiri is under tremendous pressure to find another source of funding as the Premier League season draws near.
According to Sky Sports, a group headed by Kevin Malone—the former general manager of the Los Angeles Dodgers—is getting ready to submit a fresh offer for Everton in the next few weeks. The Friedkin arrangement did not pique Malone’s interest in the club; his repeated offer is indicative of the continued interest in purchasing Everton by other parties.
But securing a new buyer at this stage poses significant challenges. The additional debt accumulated through interest-bearing loans from 777 Partners further complicates the situation. Everton will likely need further financial assistance to maintain the stadium build’s progress and meet payroll obligations. Initially, it was expected that 777 Partners would provide this support ahead of a completed takeover.
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