Everton are back to square one with their takeover efforts after the latest proposed acquisition fell through.
The Friedkin Group, owners of Serie A club Roma, conducted four weeks of due diligence during their exclusive period but chose not to proceed XoilacTV with the purchase.
The club remains in a state of uncertainty, though sources maintain that Everton’s business operations are « absolutely not in a precarious position. »
So, what led to the collapse of this takeover bid, and what does the future hold for the club?
Friedkin Group considers the takeover too risky
Everton were gearing up for their first pre-season friendly of the summer against Sligo Rovers in Ireland when it was announced on Friday morning that the Friedkin Group had canceled the deal.
BBC Sport has learned that a significant obstacle was related to the previous prospective buyer, 777 Partners, whose takeover plan had been supported by funding from financial insurers A-Cap.
The 777 Group loaned Everton club 200 million pounds during the time the group took over the team. The issue was not the repayment of this loan but the legal troubles that 777 faces in the US.
In May, 777 and co-owner Josh Wander were accused of a « fraudulent scheme » in a civil court filing in New York by a lender.
The Friedkin Group was uncertain about the duration of the situation, unclear about the management of the loan, and concerned about potential risks. As a result, they chose to withdraw rather than wait for the issues to be resolved.
It is understood that the loan from the Friedkin Group is considered ‘stable,’ meaning they are not seeking immediate repayment.
The group might revisit negotiations if, by some chance, 777’s legal case is resolved quickly and without further complications or delays, such as an appeal.
Who is ready to step up now?
Everton are back on the market, with the Friedkin Group becoming the fourth party in the past two years to be granted exclusivity by owner Farhad Moshiri without finalizing a takeover. This follows previous attempts by 777 Partners, Maciek Kaminski, and MSP Sports Capital.
The Friedkin Group reached a preliminary agreement on June 14, surpassing five other bidders to conduct a detailed review of the club’s finances.
A consortium led by Kevin Malone, the former general manager of the LA Dodgers, also made a takeover bid and was prepared to invest over £78m in football operations this year
The complexities surrounding the debt are a significant concern, and BBC Sport has learned that Malone’s group is « seriously evaluating the opportunity » before deciding whether to renew their interest.
There are also other international corporations interested in the team, for example the group of members of the Saudi royal family has made a buyout offer for 400 million pounds. Additionally, a UK-based investment firm supported by two ‘western billionaires’ also submitted a bid.
It is yet to be determined whether either of these parties will return to negotiations.
In the meantime, a £200m loan from the Friedkin Group was used to repay a £158m loan from MSP Sports Capital, as well as contributions from local businessmen Andy Bell and George Downing. The remaining funds were allocated for the new stadium at Bramley-Moore Dock.
The club’s cash flow is set to improve with the upcoming installment of Premier League broadcasting revenue, valued at approximately £30-40m, if it hasn’t already been received.
Financial stability was bolstered by the sales of forward Lewis Dobbin to Aston Villa and defender Ben Godfrey to Atalanta for a total of £20m before the 30 June 2023-24 profit and sustainability deadline. Additionally, midfielder Amadou Onana was transferred to Villa in a £50m deal earlier this week.
Will Branthwaite stay and are more signings on the horizon?
The squad exuded positivity during their pre-season camp in Ireland last week, maintaining high spirits even as boss Sean Dyche put them through double training sessions on certain days.
In their downtime, players could choose from activities like golf, table tennis, padel, fishing, or unwinding in the spa. They also enjoyed a quiz night with both squad members and staff.
That sense of unity was strengthened by securing their Premier League status with three games to spare last season. Ashley Young told BBC Sport that the team is now aiming for a top-10 finish this season, as new signings Iliman Ndiaye, Tim Ireogbunam, and returning Jack Harrison integrate into the squad.
Despite the recent collapse of the takeover attempt, club sources have assured that there won’t be a fire sale and that the broader transfer plans remain intact 7m.
Additional arrivals are anticipated, with strong interest in Napoli winger Jesper Lindstrom and Leeds United forward Wilfried Gnonto.
Retaining their valuable asset, Jarrad Branthwaite, would be a significant boost for the upcoming season, and Everton have already turned down two offers from Manchester United.
BBC Sport was informed on June 10 that only a ‘mega’ offer would prompt the club to consider selling the player, and that position remains unchanged.
Additionally, Everton have a new stadium to anticipate, set to open for the start of the 2025-26 season, offering a ray of optimism despite the ongoing takeover uncertainty.
