Friedkin pulls out of Everton acquisition over debt concerns

July 22 – Everton owner Farhad Moshiri is looking for another buyer for the club after the Friedkin Group pulled out of a £400 million deal agreed in principle in June.

The US investors, who also own Serie A club Roma, had entered a period of exclusivity with Moshiri, but are understood to have become concerned over the complications of Everton’s debt.

Friedkin had injected £200 million into the club that included paying off a £158 million loan to MSP Sports Capital and two local businessmen. That money will not be repaid immediately with Friedkin becoming a lender to the club, according to a joint statement.

The stumbling block for Friedkin is a further £200 million owned to previous prospective buyer 777 Partners who failed to compete their deal. Their takeover had been backed by financial insurers A-Cap.

A-Cap is facing legal action in the US over its backing of 777 Partners by Leadenhall Capital Partners, a London-based investment firm. Leadenhall accused 777 and A-Cap of fraud arguing that 777 borrowed hundreds of millions of dollars from Leadenhall secured on assets it had already used as security on other loans.

Leadenhall says 777 also used collateral it did not own to secure loans.

While the dispute is with A-Cap and its backing of 777, the asset caught up in the dispute is Everton Football Club, and A-Cap wants blood.

The question now is whether any other investor can be found who is more comfortable with Moshiri and Everton’s debt situation, or whether Moshiri can find another solution to make the sale easier or the debt more manageable.

Meanwhile, the progression towards Everton’s move from Goodison Park to their new stadium at Bramley-Moore Dock is continuing with the stadium now scheduled to open for the 2025/26 season.

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