Everton’s takeover talks with the Friedkin Group have come to a halt after the two parties were unable to finalize an agreement. The Friedkin Group, which also owns Serie A club Roma, had initially agreed in principle to take over the Premier League team back in June. However, the deal fell through when a previous prospective buyer, 777 Partners, failed to pay off a loan of £200m that they had given to Everton during their takeover attempt. The legal action that 777 faces in the US further complicated matters for the Friedkin Group, who decided it was best to explore alternative options rather than wait for the issues to be resolved.
The Friedkin Group had concerns about the outstanding loans and hoped that the lenders would agree to reduce what was owed to them. The complex financial situation and potential risks involved led them to believe that the deal was not worthwhile. Everton has faced criticism in recent years due to significant losses, posting just under £400m for the four years between 2019 and 2023. The club was docked a total of eight points for breaching the Premier League’s Profit and Sustainability Rules. Despite these setbacks, Everton remains an attractive proposition for investors if the right price can be agreed upon.
It is worth noting that Farhad Moshiri, who bought a 49.9% share in Everton in 2016, is now the majority owner through Blue Heaven Holdings with a 94% stake. Moshiri had announced a deal with 777 Partners for a takeover in September 2023, but the deal fell through due to the group’s failure to meet the Premier League’s ownership conditions. The Friedkin Group marks the fourth party to be granted exclusivity by Moshiri without completing a takeover.
While the failed takeover is undoubtedly a setback for Everton, the club is not in immediate financial danger. The loan from the Friedkin Group is considered stable, meaning they are not looking to call it in immediately. Everton’s move to a new stadium at Bramley-Moore Dock for the 2025-26 season also indicates a long-term vision for the club’s future.
Overall, the failed takeover highlights the challenges and complexities involved in football club acquisitions. Financial due diligence and concerns over outstanding loans can significantly impact the viability of a deal. However, Everton’s status as a Premier League team and its potential for growth make it an attractive proposition for investors. The club will need to address its financial situation and continue to work towards sustainable success both on and off the pitch.