Everton’s £800m Friedkin Group takeover OFF plunging club back into crisis and facing administration
EVERTON have suffered a fresh blow in their hopes of finding a new owner after the Friedkin Group’s proposed takeover of the club fell apart.
A statement said that following a period of exclusivity for talks between the parties, the group would not be progressing with a purchase.
The statement read: “Following a period of exclusivity, discussions between Blue Heaven Holdings and The Friedkin Group over a potential sale of a majority stake in Everton have ended and The Friedkin Group will not be progressing with a purchase of the Club.
“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. The parties agree it is in both their interests for Everton to explore alternative options.”
The breakdown came after four weeks of negotiations over an £800million deal.
The Friedkin Group (TFG), who also own Italian side AS Roma, pulled out of a deal on Thursday over concerns about the club’s debt to 777, an investment firm based in Miami.
According to The Athletic, that debt comes from a series of loans taken out by the club from the firm last season and is worth £200m.
The concerns are said to be related to the fact that 777 are now in the hands of insolvency experts after it’s companies began to unravel earlier this year following lawsuits with unpaid bills and fraud allegations, which are denied by the firm.
Everton also saw a takeover deal with 777 collapse earlier this year.
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This second failed takeover has now left the Goodison Park outfit in a precarious situation as they stare down administration.
The statement added: “The Friedkin Group will remain a lender to the Club and is proud to have played a key role in enabling the new stadium to be built, which will help ensure a bright future for both Everton and the City of Liverpool.
“Blue Heaven Holdings maintains a positive relationship with The Friedkin Group and would like to thank them for the time and effort they have put into this process.
“When there is further news to share, it will be provided via the Club’s official communication channels.”
The owner of TFG, Dan Friedkin has an estimated worth of £4.8bn.
SunSport reported last month how Friedkin was believed to have agreed to majority owner Farhad Moshiri’s demand for £200m up front to be given the rights to examine the club’s finances before moving ahead with the deal.
It has left Everton dancing with fire once again under Premier League Profit and Sustainability rules following losses of £133m over the last two years, putting them £2m beyond the league’s PSR limit of £105m going into the year of the regulation cycle.
The club also need a further £200m to complete the construction of their new Bramley – Moore Dock home.
Everton were by two point deductions that added up to ten points last season, but managed to survive the drop under Sean Dyche.
Their massive debts, estimated to be worth £600m overall, also mean Everton continue to flirt with administration – which would bring an automatic nine-point deduction.
The club turned down two offers from Manchester United for defender Jarrad Branthwaite while they also failed to agree a sale with Newcastle over Dominic Calvert-Lewin.
But this fresh setback could force the club between a rock and a hard place of selling another star.
The club have already agreed a £50m sale for Amadou Onana to Aston Villa.
Premier League sides deducted points and others at risk
Nottingham Forest
Deducted four points during the 2023-24 season for breaching Premier League spending limit by £34.563m. Failed in their appeal with decision upheld.
Everton
Initial 10-point deduction for 2021-22 Premier League breaches reduced to six points on appeal. Were deducted a further two points later in the 2023-24 season. Appealed, but since withdrawn following Prem survival.
Sheffield United
Hit with a two-point deduction for their finances during the 2022-23 EFL season. Will begin the 2024-25 Championship season on -2 points following their relegation from the Prem.
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Manchester City
Etihad club emphatically denies the 115 allegations laid against them in February 2023. The lengthy Commission case has been scheduled to start in October or November but a final decision is not expected until March or April 2025.
Chelsea
Blues chiefs flagged up illicit payments made to agents and others during the Roman Abramovich era. Fined £8.6m by Uefa but still to be formally charged by the Prem despite an ongoing investigation.
Leicester
Foxes breached Prem PSR loss limits last season but did not have to report their 2022-23 accounts until this month because of their relegation. That puts the timetable back and means that they will probably face a Prem points deduction for the 2024-25 season following their return to the top flight.
Everton (again)
The Toffees are again at risk of breaking PSR rules and are in a race against time to raise funds and balance the books. Not only could that lead to another charge but also administration. That would lead to an automatic nine-point deduction for the 2024/25 season.