Roma’s American owners The Friedkin Group (TFG) have agreed a deal to complete the takeover of Everton, subject to regulatory approval. The deal will reportedly see TFG, an existing Everton lender, purchase current owner Farhad Moshiri’s 94 per cent stake in the Merseyside club.
A joint statement said from Moshiri’s company and TFG said: “Blue Heaven Holdings and The Friedkin Group confirm that they have reached agreement over the terms of the sale of Blue Heaven Holdings’ majority stake in Everton Football Club. The transaction is subject to regulatory approval, including from the Premier League, the Football Association, and the Financial Conduct Authority.”
A spokesperson for TFG added: “We are 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.”
The latest development represents the latest twist in a long-running but ever-changing takeover saga that began over 12 months ago. In that time, Everton’s external debt has risen to around £600million as they have sought ways to finance everyday running costs and their new stadium project. £200m of that debt is owed to Friedkin, who previously pulled out of takeover talks with Moshiri in July over concerns about the club’s outstanding debt.TFG will now hope to succeed where others have failed in completing a takeover of the Merseyside club. Moshiri has also previously entered into exclusive talks with the KAM Group, MSP Sports Capital, Crystal Palace part owner Textor and,Miami’s 777 Partners.
All of those deals collapsed, though, most notably with 777, who are now being sued for fraud in New York and have also lent Everton around £200m.
Any deal for TFG to buy Everton remains subject to regulatory approval, which would usually be expected before the end of the year.
Everton have endured another difficult start to the season. Winless in their opening four games, they earned their first point of the season away to promoted Leicester City on Saturday but remain close to the foot of the table.
Everton’s Financial Woes
Everton's financial struggles have been a major factor in the protracted takeover saga. The club's external debt has ballooned to £600 million, fueled by a combination of stadium development costs and the need to fund day-to-day operations. This debt burden has attracted several potential buyers, including the Friedkin Group. However, concerns over the club's financial health and the complexity of its debt structure have resulted in multiple failed takeover attempts.
The Friedkin Group's Path to Everton
The Friedkin Group's pursuit of Everton has been a rollercoaster ride. Initially, they expressed interest in acquiring the club in June and entered into exclusive negotiations with Farhad Moshiri. However, concerns surrounding the £200 million loan provided by 777 Partners, a previous would-be buyer, led to the talks breaking down in July. Despite those initial concerns, the Friedkin Group has ultimately secured a deal to acquire Everton, highlighting their commitment to the club and a willingness to navigate its complex financial landscape.
Negotiating the Debt
The Friedkin Group's strategy to resolve Everton's debt issues is key to their takeover success. They have reportedly reached agreements with A-Cap, the principal backer of 777 Partners, to pay off the £200 million loan. Additionally, they have committed to repaying some or all of the £225 million loaned to Everton by Rights and Media Funding. These agreements demonstrate the group's commitment to addressing the club's financial burden and building a stable foundation for the future.
A New Era for Everton?
The Friedkin Group's arrival at Everton marks a significant moment for the club. While the immediate focus is on securing regulatory approval, the takeover represents a potential shift in the club's trajectory. The group’s experience in managing Roma, another iconic football club, could provide valuable insights and guidance to Everton. The group's commitment to providing stability and a clear vision for the future, including the completion of the new stadium, has instilled hope among fans.
The impact of the Friedkin Group's ownership on Everton’s future remains to be seen. Their success will depend on their ability to navigate the club's financial challenges, build a strong team on the pitch, and engage with the passionate fanbase. The takeover marks a turning point, but it's the years to come that will truly determine the long-term success of this new era for Everton.
A Promising Future or Another False Dawn?
The takeover of Everton by The Friedkin Group comes after a tumultuous period for the club. Moshiri's tenure has been marked by financial instability and inconsistent performance on the pitch. The departure of Moshiri marks the end of an era, and the Friedkin Group has a chance to rewrite the club's story. Their experience with Roma, their commitment to stability, and their focus on the new stadium project give reason for optimism. However, the Friedkin Group will need to prove their ability to manage Everton's finances, build a competitive team, and cultivate a positive relationship with the fans. Whether this takeover heralds a new era of success or simply another false dawn remains to be seen.
