September 24 – Having pulled out of a deal to buy Everton on July 22, two months later The Friedkin Group has now reached an agreement to buy Farhad Moshiri’s majority 94% stake in the club.
“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,” said a club statement.
The Texas-based investors, who also own Serie A club Roma, had conducted due diligence on the club in June during a period of exclusivity following the failure of 777 Partners to complete their proposed acquisition.
Friedkin then baulked at the deal in July having already injected £200 million into the club that included paying off a £158 million loan to MSP Sports Capital and two local businessmen. In July it was agreed that money would not be repaid immediately with Friedkin becoming a lender to the club.
That £200 million loan could now be converted into equity.
The stumbling block for Friedkin in completing the deal in July was a further £200 million owed to 777 Partners whose takeover attempt had been backed by financial insurers A-Cap who was itself 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 was with A-Cap and its backing of 777, the asset caught up in the dispute was Everton Football Club. It is understood that Friedkin now has an agreement to pay off A-Cap. Friedkin has also agreed to repay some or all of the £225m loaned to Everton by Rights and Media Funding at a 10.25% interest rate.
No figure has been given for any payment to Moshiri though it looks like he has lost most, if not all, of his investment in the club.
With the money in place and the deal agreed, Friedkin Group principal, Dan Friedkin who has a net worth of about £5.7 billion, is unlikely to have problems passing the Premier League’s owners’ and directors’ test. That could still take 6-8 weeks.
What the announcement does achieve immediately is ownership stability and confidence in the club as it progresses towards its move from Goodison Park to their new stadium at Bramley-Moore Dock, now scheduled to open for the 2025/26 season.
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.”
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