Everton takeover talks with the Friedkin Group have suffered a major setback after the two parties failed to finalize an agreement.
The Friedkin Group, which also owns Serie A club Roma, had agreed in principle to take over Everton in June. Chairman Dan Friedkin and his group were granted exclusivity in talks after a deal to sell to Miami-based firm 777 Partners broke down.
“The parties agree it is in both their interests for Everton to explore alternative options,” stated the Friedkin Group and Everton’s current ownership group, Blue Heaven Holdings, in a joint statement on Friday.
BBC Sport understands that a major stumbling block involved a previous prospective buyer, 777 Partners, whose proposed takeover plan had been backed by funding from financial insurers A-Cap. The 777 group had loaned Everton £200m during their takeover attempt, and the issue was not repaying that amount but the legal action 777 faces in the US.
The Friedkin Group was unsure how long these legal issues would last, unclear about who was in charge of the loan, and wary of any potential risks. Consequently, they decided to walk away rather than wait for the issues to be resolved.
Despite the collapse of the takeover, the Friedkin Group, which injected £200m into the club and paid off a £158m loan to MSP Sports Capital and two local businessmen, will “remain a lender to the club,” the joint statement added. It is understood that the loan from the Friedkin Group is a ‘stable’ one, meaning the group is not looking to call it in immediately, and club sources have said Everton as a business is “absolutely not in a precarious position.”
