Friedkin Group agreed to purchase Everton two months after pulled out of negotiations for the purchase of Farhad Moshiri’s 94.1% stake.
Over the weekend, the US company owned by billionaire Dan Friedkin held constructive discussions with Everton majority owner John Textor in an attempt to outbid the Crystal Palace Co-owner John Textor.
Friedkin’s withdrawal from the Everton takeover bid left Textor as the new frontrunner. Textor can own 45% of Palace but not a second Premier League team. This made Textor vulnerable to rival bids, despite holding a 45% share. Friedkin has now agreed to terms that will allow him to pay Moshiri off and repay other lenders. The Premier League could ratify its proposed takeover in six to eight weeks.
Everton released a statement saying: “Blue Heaven Holdings has reached an agreement with The Friedkin Group regarding the terms of sale of Blue Heaven Holdings’ majority stake in Everton Football Club.” The Premier League, Football Association and Financial Conduct Authority will all need to approve the transaction.
The Friedkin Group spokesperson said: “We’re pleased that we have reached an understanding to become the custodians for this iconic football team. We are focused solely on securing approvals for the transaction. We are looking forward to providing stability for the club and sharing our vision of its future, which includes the completion of the Everton Stadium at Bramley-Moore Dock.
Friedkin’s initial attempt to buy Everton failed due to concerns about the £200m that 777 Partner loaned the club. This was one of many companies who have attempted to buy Moshiri out in the last 18 months. 777 Partners has a dispute in New York District Court with Leadenhall Capital. The London-based asset manager.
Friedkin, the principal supporter of 777, and A-Cap have since held talks to alleviate these concerns. Friedkin is believed to have an agreement with A-Cap. The company also has an agreement to pay back some or all the £225m that Rights and Media Funding loaned Everton. The interest rate on the loan is 10.25%. Friedkin will pay off Moshiri as part of the takeover. However, he may lose his entire investment in Everton.
Friedkin loaned Everton £200m when due diligence on the club accounts was completed during its exclusivity period with Moshiri. This sum was used to pay off £158m in loans that Everton had received from MSP Sports Capital (another prospective buyer) and local businessmen George Downing & Andy Bell. It also enabled Everton finalise the funding of their new stadium. The money must be paid back in the event that another party takes over the club or it can be converted to equity if the US company ends Moshiri’s turbulent reign. Friedkin will lend the club additional money to cover its day-today operations as it awaits regulatory approval for its takeover.
Dan Friedkin will not have any problems passing the Premier League owners and directors test. Dan Friedkin also owns Roma after completing a takeover two months after initial talks had failed.
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