Will the ongoing Everton takeover saga ever come to an end? This was the burning question among fans when news broke that Dan Friedkin had halted exclusive negotiations with Farhad Moshiri.
Moshiri had selected AS Roma owner Friedkin as the preferred buyer, hoping he would take on the club’s debts and offer some cash for Moshiri’s shares. However, Moshiri’s asking price of £50m for his 94% stake in Everton raised eyebrows considering the club’s £800m debt burden.
With numerous third parties, including Friedkin, now involved, the situation has become increasingly unclear and complex. To shed light on the situation, TBR spoke with football finance expert Kieran Maguire from Liverpool University and author of Price of Football.
Friedkin’s decision to walk away from Everton is not unprecedented, as Miami-based firm 777 Partners also failed to secure Premier League approval after nine months of exclusive talks with Moshiri. Facing financial and legal troubles, 777 Partners’ issues have trickled down to Everton as one of their lenders, causing further complications.
Maguire suggests that Friedkin likely deemed the situation too risky due to potential legal disputes and financial entanglements involving 777 Partners and their lenders. The intricate web of debt and legal actions made it a precarious investment for Friedkin.
Speculation has arisen that if 777 Partners were to sell their debt in a liquidation scenario, Everton could renegotiate the debt at more favorable terms, easing the burden for a new investor.
However, Maguire notes that complex corporate lending arrangements, including ‘change of control clauses,’ could complicate debt renegotiation if ownership changes. While renegotiation is possible, it must be mutually beneficial for all parties involved.
Regarding the possibility of administration at Everton, Maguire acknowledges the looming threat due to the club’s debt levels. While potential investors may consider administration to acquire the club at a reduced price, Maguire believes it’s not a likely outcome.
Despite the challenges and uncertainties surrounding Everton’s future, Maguire remains confident that interested parties are still in the mix, exploring various options to navigate the complex financial landscape.
