Chaos returns to Everton as Friedkin Group backs out of deal
The ongoing mess behind the scenes at Everton unfortunately looks set to continue. Current Toffees owner, Farhad Moshiri, announced in September of 2023 that he was selling the team to 777 Partners. The deal, however, dragged on for eight months and ultimately fell through. Despite providing the English club with multiple massive loans, the American investment group could not seal the deal.
While the situation seemed bleak, an agreement with another American group appeared to be in the cards. Everton announced in June that they entered a period of exclusivity with the Friedkin Group. Details in the deal just needed to be ironed out.
Nevertheless, the pending takeover is now officially off, specifically due to the previous loans provided to the club by 777 Partners. Moshiri personally picked the Friedkin Group over a series of other potential partners. The investment conglomerate, led by Texan Dan Friedkin, purchased Italian side Roma in 2020.
Potential new owners back out due to previous 777 loans
In a joint statement regarding the situation, Everton and the Friedkin Group confirmed that the takeover talks have concluded without a deal. “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,” read the statement. “The parties agree it is in both their interests for Everton to explore alternative options.”
The crux of the Friedkin Group’s concerns revolves around the club’s debt involving 777 Partners. 777 previously provided Everton with around $258 million in various loans throughout the 2023/24 season. These funds essentially helped the Toffees run day-to-day operations. According to The Athletic, this large debt is now controlled by insurance firm A-Cap. 777 previously borrowed the money from the firm to help fund Everton.
The Friedkin Group is now aware that both 777 Partners and A-Cap are currently facing accusations of fraud. The harsh allegations were recently brought up by Leadenhall Capital Partners, a London-based investment group. Both 777 and A-Cap have since denied the allegations, but the former group is now essentially fighting to stay afloat. 777 Partners currently faces insolvency after the fraud allegations and months of unpaid debts.
Everton proving to be costly club to purchase
While the Friedkin Group has backed out of a deal to buy Everton, they will seemingly remain associated with the club. The Americans also previously provided the Toffees with a $258 million loan pertaining to Everton’s new stadium. This particular agreement as the secured lender for the arena will stay in place.
Nevertheless, Everton’s future is now back in a precarious place once again. The club currently owes $775 million to a trio of lends, including A-Cap/777 Partners. Along with this massive debt, the Toffees also recently posted losses of about $112 million for the 2022/23 financial year. It was the sixth straight season that the team recorded a significant loss.
These collective losses already yielded two different Premier League points deductions. The latest news regarding the Friedkin Group now puts the club in danger of further penalties by English soccer officials. There is a glimmer of hope, though. Several other firms recently expressed interest in purchasing the Toffees. However, Everton’s 2024/25 campaign is just weeks away from starting. Any deal needs to finish as soon as possible.
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