Everton find themselves back to square one on the takeover front after the latest proposed acquisition fell through.
The Friedkin Group, owners of Serie A side Roma, conducted four weeks of due diligence during their exclusivity period but ultimately decided not to proceed with the purchase Xoilac TV.
This leaves the club in limbo once again, though sources maintain that Everton is “absolutely not in a precarious position” as a business.
So, what went wrong with the latest takeover bid and what does the future hold?
Friedkin Group Considers Takeover Too Risky
Everton Club is preparing for a friendly match with a club in Ireland, however at this time, Friedkin Group suddenly announced the end of the cooperation contract.
According to research from reporters at BBC Sport, the leading corporation planning to take over the team is 777 Partners, in addition, the investment will be supported by insurance company A-Cap.
The 777 group loaned Everton £200 million during their takeover attempt. The issue wasn’t repaying that loan, but the legal action 777 faces in the US.
In May, 777 Group founder Josh Wander was accused of fraud, then the trial took place in New York.
The Friedkin Group was uncertain about how long this legal situation would last, unclear about who was in charge of the loan, and wary of any potential risk. In the end, they decided to leave and return to work as usual without waiting for the situation to be resolved
The loan from the Friedkin Group is understood to be ‘stable,’ indicating that they are not seeking immediate repayment.
The group could resume talks if, in the unlikely scenario, 777’s litigation case is settled quickly and without additional issues or delays, such as an appeal.
Who will step up now?
Everton are back on the market, and the Friedkin Group is the fourth party in the past two years to be granted exclusivity by owner Farhad Moshiri without completing a takeover, following 777 Partners, Maciek Kaminski, and MSP Sports Capital.
They had agreed to a deal in principle on June 14, surpassing five other rival bidders for an in-depth review of the club’s finances.
A consortium led by Kevin Malone, former general manager of the LA Dodgers, made a takeover offer and was prepared to commit over £78 million to football operations this year.
The complications surrounding the debt are a major concern. Kevin Malone told BBC Sport that his group is “seriously evaluating the opportunity” before deciding whether to renew their interest.
A consortium of international investors, including a member of the Saudi royal family, made a £400 million offer. Not only that, according to research, a company based in England and managed by two of the world’s leading billionaires also wants to participate in this bidding deal.
It remains to be seen whether either of these parties will return to negotiations.
According to research, the past loan of 200 million pounds from Friedkin Group will be paid in the following form: deducting 158 million pounds from the investment fund MSP Sports Capital and two local businesses, Andy Bell and George. Downing, with the remainder covering costs for the new stadium at Bramley-Moore Dock.
The club’s cash flow will soon improve with the receipt—if they haven’t received it already—of the next portion of Premier League broadcasting revenue, worth around £30-40 million.
The financial situation was bolstered by the sale of forward Lewis Dobbin to Aston Villa and defender Ben Godfrey to Atalanta for a combined £20 million before the 2023-24 profit and sustainability deadline on June 30. Additionally, midfielder Amadou Onana departed for Villa in a £50 million deal earlier this week.
Branthwaite Staying and More Signings Incoming?
There was a sense of positivity around the squad during their pre-season camp in Ireland last week. Despite being subjected to double training sessions on some days by boss Sean Dyche, the players remained in high spirits 7m.
During their downtime, players could choose from activities like golf, table tennis, padel, fishing, or relaxing in the spa. The squad and staff also enjoyed a quiz night together.
That unity was strengthened by securing their Premier League status with three games remaining last season. Ashley Young told BBC Sport they are now aiming for a top-10 finish this term, as new signings Iliman Ndiaye, Tim Ireogbunam, and the returning Jack Harrison settle in.
Despite the latest takeover attempt falling through, club sources have stated there won’t be a fire sale and the broader transfer plans remain unchanged.
More arrivals are anticipated, with strong interest in Napoli winger Jesper Lindstrom and Leeds United forward Wilfried Gnonto.
On June 10, BBC Sport was informed that Everton would require a ‘mega’ offer to even consider selling Branthwaite, and that stance remains unchanged.
Everton also have a new stadium to anticipate, which is still on track to open for the start of the 2025-26 season. This development highlights signs of positivity amid the ongoing takeover uncertainty.