Soccer

Friedkin Group agrees deal to buy Everton from Farhad Moshiri

US company agrees deal to buy 94 per cent share

The deal comes two months after previous negotiations between the parties hit a dead end. Photograph: Matt McNulty/Getty Images
The deal comes two months after previous negotiations between the parties hit a dead end. Photograph: Matt McNulty/Getty Images
Andy Hunter
Mon Sept 23 2024 - 14:28

The Friedkin Group has agreed a deal to buy Everton, two months after pulling out of talks to purchase Farhad Moshiri’s 94 per cent shareholding.

The US company, owned by the billionaire Dan Friedkin, held fresh talks with Everton’s majority owner over the weekend as it looked to gazump interest from the Crystal Palace co-owner John Textor.

Textor had emerged as the latest front-runner in Everton’s protracted takeover saga after Friedkin walked away. However Textor, while holding a 45 per cent stake in Palace, cannot own a second Premier League club and was vulnerable to a rival bid. That threat has materialised, with Friedkin agreeing terms to buy out Moshiri.

A statement released by Everton said: “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.”

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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.”

Friedkin’s first attempt to purchase Everton faltered owing to concerns over the £200 million loaned to the club by 777 Partners, one of several companies which have tried to buy out Moshiri in the past 18 months. 777 Partners is involved in a legal dispute with Leadenhall Capital, the London-based asset management firm, in a New York district court.

Friedkin also loaned Everton £200 million during its period of exclusivity with Moshiri. That sum, which enabled the club to finalise funding for its new stadium, has to be repaid in the event of a takeover by another party or can be converted into equity should the US company finally end Moshiri’s turbulent reign.

On top of the loans from Friedkin and 777, Everton owe £225 million to Rights and Media Funding with an interest rate understood to be 10.25 per cent.

Friedkin is unlikely to have problems passing the Premier League’s owners’ and directors’ test. The American also owns Roma, having completed a takeover of the Italian club two months after initial negotiations had fallen through. – Guardian