The future of Everton has been plunged into further doubt after the Friedkin Group pulled out of a deal to buy the English Premier League soccer club.
Last month, Dan Friedkin, who also owns Italian side Roma, reached a framework agreement for a takeover of Everton.
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Friedkin had entered into a period of exclusive negotiations with current owner Farhad Moshiri around a buyout of the latter’s 94% stake (which he has been looking to offload for some time) but failed to finalize an agreement.
The opportunity to buy the Merseyside club came after private equity firm 777 Capital Partners’ deal to buy the team collapsed last month.
But the Friedkin group has backed out of a takeover after stating the £200 million ($258.4 million) Everton owes to 777 and financial insurers A-Cap was a stumbling block due to legal issues 777 faces in the US and the potential risks associated with this.
In a statement issued today, Everton said: “Following a period of exclusivity, discussions between Blue Heaven Holdings and the Friedkin Group over a potential sale of a majority stake in Everton have ended and the Friedkin Group will not be progressing with a purchase of the Club.
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By GlobalData“Both Blue Heaven Holdings and The Friedkin Group entered discussions in good faith to explore whether a sale could be agreed. Those discussions have concluded. The parties agree it is in both their interests for Everton to explore alternative options.”
The Premier League side added that the US group will remain a lender to the club and credited it with playing a “key role” in enabling its new stadium to be built.
The Friedkin Group injected £200 million into the club and paid off a £158 million loan to MSP Sports Capital and local businessmen Andy Bell and George Downing.
Between September and May, Everton and 777 were in negotiations around the latter group becoming the new owners. However, an exclusivity period between those parties ended at the start of June, with 777 unable to satisfy the Premier League as to adequate proof of funding.
777 (which already has stakes in soccer clubs across Spain, Italy, Germany, Australia, and Belgium) had initially hoped to conclude the transaction by the end of 2023 but never managed to meet the standards of ownership set out by the Premier League in its rule book.
The league also wanted 777 to show that it had the means to pay off a debt of over £150 million to the MSP Sports Capital organization.
However, 777 never managed to satisfy the league on these fronts, and indeed over the last month or so has been facing public financial issues, notably being accused of running a “fraudulent scheme” in a US civil court filing by London-based Leadenhall Capital Partners and Leadenhall Life Insurance Linked Investments Fund.
Meanwhile, the Bonza budget airline owned by 777 entered voluntary administration in late April.
Bell and Downing, a pair of wealthy Everton fans, could be an option to take over the club, while Crystal Palace shareholder John Textor is also said to be eyeing up Everton after announcing his divestment from Palace.
Everton is planning to move into its new Bramley Moore Dock stadium (for which costs have reportedly increased to close to £800 million) in 2025-26.
The club was deducted eight points (over two separate incidents) last season, for a duo of breaches of the Premier League’s profit and sustainability rules.
