The Friedkin Group has struck a deal to acquire Everton Football Club, just two months after stepping away from earlier negotiations to purchase Farhad Moshiri’s 94% shareholding.
The US company, led by billionaire Dan Friedkin, returned to the table over the weekend, reviving its bid to buy out Everton’s majority owner.
The move comes as a blow to Crystal Palace co-owner John Textor, who had appeared to be the leading candidate in Everton’s lengthy takeover saga.
Textor, who controls a 45% stake in Crystal Palace, had emerged as the frontrunner after Friedkin initially withdrew. However, the American businessman faced a significant obstacle in his pursuit of Everton.
Due to Premier League rules, Textor cannot hold significant interests in two top-flight English clubs. This left his efforts vulnerable to a competing offer, a threat that has now been realised with Friedkin’s re-entry into the fray and subsequent agreement with Moshiri.
Everton confirmed the agreement in a statement released earlier this week: “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.”
A spokesperson for The Friedkin Group added: “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 initial attempt to acquire the Merseyside club was complicated by concerns over the £200m loaned to Everton by 777 Partners, a US investment firm.
777 Partners, one of several entities that had previously sought to buy Moshiri’s stake, is currently embroiled in a legal dispute with London-based Leadenhall Capital in a New York district court.
Friedkin also loaned Everton £200m during its exclusive negotiations with Moshiri, a sum which helped the club secure funding for its new stadium at Bramley-Moore Dock.
The loan must be repaid in the event of a takeover by another party, or it can be converted into equity if Friedkin completes the acquisition.
Alongside the loans from Friedkin and 777, Everton also owe £225m to Rights and Media Funding, with the debt carrying an interest rate of 10.25%.
Friedkin, who also owns Italian side AS Roma, is unlikely to encounter significant issues passing the Premier League’s owners’ and directors’ test, having successfully navigated a similar process in Italy.