Everton is set to be forced to start a fresh search for a new owner after the English Premier League football club confirmed the end to a proposed takeover from The Friedkin Group (TFG).
The US consortium, which owns Italian Serie A club AS Roma, has been in exclusive talks with Blue Heaven Holdings, the entity controlled by Everton owner Farhad Moshiri, for the past month, but has now withdrawn from negotiations.
Everton said in a statement today (Friday): “Following a period of exclusivity, discussions between Blue Heaven Holdings and The Friedkin Group over a potential sale of a majority stake in Everton have ended and The Friedkin Group will not be progressing with a purchase of the club.
“Both Blue Heaven Holdings and The Friedkin Group entered discussions in good faith to explore whether a sale could be agreed. Those discussions have concluded. The parties agree it is in both their interests for Everton to explore alternative options.
“The Friedkin Group will remain a lender to the club and is proud to have played a key role in enabling the new stadium to be built, which will help ensure a bright future for both Everton and the City of Liverpool.
“Blue Heaven Holdings maintains a positive relationship with The Friedkin Group and would like to thank them for the time and effort they have put into this process.”
TFG has been in talks with Everton after the club last month confirmed that an agreement for embattled US investment fund 777 Partners to purchase a majority shareholding had expired.
Moshiri agreed to sell his majority shareholding in Everton to 777 Partners in September last year. Moshiri said the deal would secure “complete financing” for the club’s new stadium, which is currently being built at Bramley-Moore Dock.
The Athletic said TFG withdrew from negotiations on Thursday, citing concerns about the club’s debt to 777. It said the £200m (€237.3m/$258.3m) debt, comprised of a series of loans the now financially-troubled 777 made to Everton last season, is now controlled by American insurance firm A-Cap, the original source of that money. TFG’s concerns about the debt are said to be related to the fact that 777 is now in the hands of insolvency experts.
The Athletic said TFG has already lent Everton £200m to repay another debt of £158m to a group of investors led by American firm MSP Sports Capital, along with paying the latest invoice from Everton’s stadium construction partner, Laing O’Rourke.
It added that TFG has now replaced MSP as the secured lender at Everton Stadium Development Limited, the club subsidiary that owns the new facility. Through its ownership of Roma, TFG is also attempting to push forward with a project to deliver a new stadium for the club in the Pietralata district of the Italian capital.
Everton last month announced it will stage a series of special events over the coming months under the ‘Gwladys Street Presents’ banner to celebrate Goodison Park as the club prepares to depart its long-term home for the state-of-the-art new Bramley-Moore Dock stadium.
Everton started work on its new 53,000-capacity home in August 2021 and the project is due for completion later this year before the club moves into the venue ahead of the 2025-26 season.
