Everton Football Club creditors are fighting to buy the Premier League team from its British Iranian owner Farhad Moshiri. This is the latest twist after the failed takeover by 777 Partners.
People with knowledge of this matter said that stockbroker Andy Bell and property mogul George Downing were competing with US firm MSP Sports Capital for exclusive talks with Moshiri.
The people who spoke to me said that Everton had received other investment proposals. While Bell, Downing, and MSP may be central figures due to the loans they provided for the club’s stadium, they also claim Everton has received loan offers from others.
Since September, the Liverpool-based club was in limbo. 777 had agreed to be its new owner. The Miami investment firm did not meet the conditions for league approval, and the deal with Moshiri ended last week.
BDT &MSD Partners, a merchant bank and investment company, is willing to finance the club in the event of a takeover. This was confirmed by people familiar with the situation. People with knowledge of the matter said that the US bank had not yet agreed to back any of the creditors, but was willing to help the most credible buyer.
BDT &MSD, Moshiri and Everton declined to comment. MSP and Downing have been approached for comments.
A person familiar with the situation said that US insurance company Advantage Capital Holdings has made its own proposal. It is a major lender to 777. Bloomberg reported earlier that A-Cap offered to refinance Everton’s existing debt, and take a minor equity position with Moshiri keeping the majority stake.
A-Cap has not commented on the proposal, but it previously said that they were now a “senior secure creditor of club”.
After its bid on September 2023, Everton received more than $200mn in loans from 777. A-Cap’s apparent transfer of debt follows the Miami company’s decision to hire an external restructuring firm following clashes with creditors of 777 and the unraveling of its Bermudian Reinsurance Funding Structure.
A-Cap reduced its exposure to 777 as a result of concerns raised by US state regulators, rating agencies and other stakeholders.
Everton has been the champion of England nine times. The most recent was in 1987.
Since the pandemic of coronavirus, Everton has been struggling to make ends meet. This led to matches being played in empty stadiums. Everton suffered another blow when Russia invaded Ukraine and forced them to cut their ties with sponsors linked to Alisher Usmanov – Moshiri’s former business partner.
Everton, on the other hand, has been forced to pay for the construction of an waterfront stadium, which is intended to boost its match-day revenues compared to its current home, Goodison Park.
MSP, Bell and Downing were among the investors who provided around £160mn of loans to help fund the Bramley Moore Dock stadium. Another lender is Rights and Media Funding. This company has also funded clubs in Spain’s La Liga.
Bell, the founder of UK broker AJ Bell and Downing, are Everton supporters. MSP is headed by American-Iranian Jahm Njafi, a businessman, and Jeff Moorad, a former sports agent. They own a minority stake of McLaren Racing which competes in Formula One, and other car racing competitions.
Everton’s net debt increased from PS141mn to approximately £330mn by the end of 2023, up from £141mn one year prior. These figures do not include debts associated with A Cap and 777.
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