August 22 – John Textor is closing in on an agreement in principle to buy Premier League Everton from Farhad Moshiri, but he has yet to complete on a buyer for his 45% stake in Crystal Palace.
The deal for Everton is expected to be agreed by the end of this week, though reports differ as to whether Textor (pictured) was in Liverpool to negotiate terms and get an update on the progress of the new stadium at Bramley-Moore Dock. Either way, Textor still has to sell his Palace stake and depending on how he finances any deal for Everton will likely need that money to complete.
Textor paid £87.5 million for a 40% stake in Crystal Palace in 2021 and has reportedly turned down a deal from fellow US investors in Palace, Josh Harris and David Blitzer, for around £100 million. They currently own 18% stakes in the club.
Reports say there are three other investors who have expressed an interest in buying Textor’s shares – one from the Middle East and another from the US.
Crystal Palace chairman Steve Parish told the BBC last week that he would not stand in the way of Textor selling his shares or buying Everton.
Moshiri wants a deal done fast, not least because of growing financing issues around cashflow and a potential need to refinance the stadium build towards the end of the year as it pushes for completion.
In July 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 became increasingly 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 was not repaid but turned Friedkin into a lender to the club.
The stumbling block for Friedkin was a further £200 million owned to previous prospective buyer 777 Partners who failed to compete their deal. It is a problem that has not been overcome.
777 Partners’ takeover had been backed by financial insurers A-Cap. A-Cap is facing legal action in the US by Leadenhall Capital Partners, a London-based investment firm. Leadenhall has 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.
The result is that Everton is contingent on another party’s lawsuit unless a buyer is prepared to take the risk of being caught in any legal fallout or claim from that suit.
That issue has not deterred Textor whois no stranger to living on the financial edge with his football clubs.
Textor already owns Lyon in France, Botafogo in Brazil and Molenbeek in Belgium and is seeking a club in Portugal. All of his clubs have variously struggled with cash flow. Textor has also reportedly shown interest in English Championship club QPR.
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