The investment group run by U.S. billionaire Dan Friedkin on Monday agreed to buy Everton F.C., potentially ending years of uncertainty for the struggling English Premier League soccer club.
The deal is subject to regulatory approval from the EPL, the Football Association, and Britain's Financial Conduct Authority.
A spokesperson for The Friedkin Group, a privately held consortium of businesses with Chairman and CEO Dan Friedkin at the helm, said it was "pleased to have reached an agreement to become custodians of this iconic football club."
"We are focused on securing the necessary approvals to complete the transaction. We look forward to providing stability to the club, and sharing our vision for its future, including the completion of the new Everton Stadium at Bramley-Moore Dock," it said in the statement.
The deal would give Friedkin the 94% stake currently owned by Farhad Moshiri. British-Iranian businessman Moshiri bought a 49.9% slice of Everton in 2016 and more recently increased that stake with a 100-million-pound capital injection.
Despite Moshiri's investments, the club — founded in 1878 — has gone backward and has narrowly avoided relegation out of the EPL on several occasions in recent years. The club currently sits 19th out of 20 teams in the EPL and is yet to win a game this season. Last season, it was docked points for breaching Premier League financial rules.
Everton's Ownership Saga: A Tumultuous Ride
The club has seen interest from various buyers in recent years, including U.S. private equity firm 777 Partners and more recently American businessman John Textor. Earlier this year, The Friedkin Group agreed a deal in principle to buy Everton but pulled out of talks when it failed to reach an agreement.
Friedkin's Investment and Multi-Club Model
Friedkin also owns Italian Serie A side Roma and, according to Forbes, has a net worth of $7.6 billion. In June, Friedkin had expressed his desire to make both Roma and Everton the cornerstones of a multi-club model, an approach that's gaining traction in the football world.
However, in a dramatic twist, the Friedkin Group pulled out of negotiations in July. While details weren't officially disclosed, reports suggested concerns over the £200m loaned to the club by 777 Partners, which was involved in a legal dispute with a London-based asset management firm.
Textor's Bid and the Premier League Rules
Following Friedkin's withdrawal, Textor emerged as the latest frontrunner to take over Everton. However, Textor's existing 45% ownership of Crystal Palace presented a challenge, as Premier League rules prohibit individuals from holding a controlling stake in multiple clubs. This vulnerability opened the door for Friedkin's return, as he was not subject to the same restrictions.
The Friedkin Group's Agreement and Regulatory Hurdles
The recent agreement between the Friedkin Group and Blue Heaven Holdings, Moshiri's holding company, is a major development. The deal is subject to regulatory approval from the Premier League, the Football Association, and the Financial Conduct Authority. This process typically takes several weeks and could involve scrutiny of the Friedkin Group's financial standing and ability to meet the EPL's ownership requirements.
The Friedkin Group's Vision: Stability and Stadium Completion
In their statement, the Friedkin Group emphasized their commitment to providing stability and sharing their vision for Everton's future. Notably, they mentioned the completion of the new Everton Stadium at Bramley-Moore Dock, a project that's been eagerly anticipated by fans. The stadium is set to become a landmark for the city of Liverpool.
The Future of Everton: A New Era of Hope?
The potential takeover by the Friedkin Group is significant, not just for Everton, but for the Premier League as a whole. If approved, it signifies a new chapter for the club, one that could bring about much-needed stability and potentially a return to the glory days.
The Friedkin Group's track record in owning and managing Roma suggests a potential for successful ownership. However, the challenges facing Everton are significant, and the new owners will need to demonstrate strategic vision and effective leadership to navigate the club back to success.
While the road ahead remains uncertain, the Friedkin Group's commitment to providing stability and sharing their vision for the future is a positive sign. Only time will tell if the new era under the Friedkin Group will usher in a new era of success for Everton.
