Football
Everton takeover bid has COLLAPSED – Liverpool rivals plunged back into crisis
The proposed takeover of Everton by the Friedkin Group, led by American billionaire Dan Friedkin, has now fallen through amid concerns of ongoing debt.
Everton had been in exclusive talks with the Friedkin Group (TFG) since mid-June, with it expected that the American consortium would purchase the club.
But a statement on Friday morning confirmed that negotiations had fallen through and the proposed takeover would no longer be going ahead.
“The parties agree it is in both their interests for Everton to explore alternative options,” the statement explained.
TFG have, however, remained a lender to the club after lending £200 million to cover existing debts and construction costs for the new stadium at Bramley-Moore Dock.
But while that development is ongoing, the future of Everton itself is uncertain, with TFG’s main concern in ending talks being the scale of debt to 777 Partners.
777 themselves are under insolvency, amid allegations of fraud, with TFG not willing to take on the issues linked with the club’s £200 million debt to that company.
The Athletic explain that Everton owe over £600 million to 777 (now controlled by American firm A-Cap), TFG and local lenders Rights and Media Funding, as well as £450 million in shareholder loans to existing owner Farhad Moshiri.
Moshiri owns 96 percent of the club and is claimed to have effectively written off those loans, though he has been “unable to fund the club for over a year.”
Though administration has not been suggested as an immediate risk at this stage, it is certainly not out of the question if Everton are unable to resolve the situation.
Mounting bills for their stadium’s construction and the debts owed to various companies make them a difficult asset to market to investors.
The club were already sanctioned by the Premier League last season for historic PSR infringements, which led to an eight-point deduction after appeal.
Everton were among the sides involved in a series of questionable deals prior to this summer’s PSR deadline, with midfielder Tim Iroegbunam joining from Aston Villa and striker Lewis Dobbin heading the other way for similar fees.
They have since sold centre-back Ben Godfrey to Atalanta for around £8.4 million, while the £50 million sale of midfielder Amadou Onana to Villa appears close.
Two bids from Man United for centre-back Jarrad Branthwaite, worth £43 million and up to £50 million respectively, have already been rejected.
United have since signed teenager Leny Yoro in a deal worth as much as £59 million, but it remains to be seen if the collapse of TFG’s takeover will impact on Branthwaite’s future.
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