The Friedkin Group has agreed a deal to buy Everton, two months after pulling out of talks to purchase Farhad Moshiri’s 94.1% shareholding.
The US company, owned by the billionaire Dan Friedkin, held constructive negotiations with Everton’s majority owner over the weekend as it sought to gazump interest from the Crystal Palace co-owner John Textor.
Textor had emerged as the latest frontrunner in Everton’s protracted takeover saga after Friedkin walked away. However Textor, while holding a 45% stake in Palace, cannot own a second Premier League club and was vulnerable to a rival bid. That threat has materialised, with Friedkin agreeing terms to buy out Moshiri and pay off other lenders. Its proposed takeover could be ratified by the Premier League in the next six to eight weeks.
A statement released by Everton 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 The Friedkin Group said: “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.”
Friedkin’s first attempt to purchase Everton faltered owing to concerns over the £200m loaned to the club by 777 Partners, one of several companies that have tried to buy out Moshiri in the past 18 months. 777 Partners is involved in a legal dispute with Leadenhall Capital, the London-based asset management firm, in a New York district court.
Those concerns have been alleviated, however, after talks between Friedkin and A-Cap, 777’s principal backer. It is understood Friedkin has an agreement to pay off A-Cap. The company has also agreed a deal to repay some or all of the £225m loaned to Everton by Rights and Media Funding. That loan has an interest rate of 10.25%. Moshiri will be paid off as part of Friedkin’s takeover, although he stands to lose most of his investment in Everton.
Friedkin also loaned Everton £200m during its period of exclusivity with Moshiri, when due diligence was completed on the club’s accounts. That sum paid off £158m of loans from MSP Sports Capital, formerly another prospective buyer, and the local businessmen George Downing and Andy Bell, and enabled Everton to finalise funding for their new stadium. It has to be repaid in the event of a takeover by another party or can be converted into equity should the US company finally end Moshiri’s turbulent reign. Friedkin will loan the club more money to cover day-to-day operations while awaiting regulatory approval on its takeover.
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Dan Friedkin is unlikely to have problems passing the Premier League’s owners’ and directors’ test. The American also owns Roma, having completed a takeover of the Italian club two months after initial negotiations had fallen through.
Source: theguardian.com
