Everton’s takeover negotiations with the Friedkin Group have been terminated after the two parties were unable to finalize an agreement.
The Friedkin Group, which also owns Serie A club Roma, had reached a preliminary agreement in June to acquire the Premier League team. The group was given exclusive negotiation rights after a deal with Miami-based 777 Partners collapsed.
In a joint statement released on Friday, the Friedkin Group and Everton’s current owners, Blue Heaven Holdings, stated, “The parties agree it is in their mutual interest for Everton to explore alternative options.”
The primary obstacle has been the unresolved issues related to the previous potential buyer, 777 Partners.
This group had provided Everton with a £200 million loan during their takeover bid, with funding from financial insurers A-Cap. The problem wasn’t the repayment of the loan itself, but the legal challenges faced by 777 Partners in the U.S.
The Friedkin Group was uncertain about the duration of these legal issues, the management of the loan, and the associated risks, prompting them to withdraw from negotiations rather than await resolution.
Despite the setback, the Friedkin Group, which previously invested £200 million into Everton and cleared a £158 million loan to MSP Sports Capital and local investors, will “remain a lender to the club,” according to the statement.
The loan is described as ‘stable,’ meaning the group does not intend to demand immediate repayment, and club sources have assured that Everton is “absolutely not in a precarious position.”
Additionally, a consortium led by former LA Dodgers general manager Kevin Malone is considering whether to revive its interest in acquiring Everton.
The main concern for this group, as with the Friedkin Group, involves finding a solution to the existing debt issues. This consortium had previously offered over £78 million for football operations before the Friedkin Group received exclusive negotiation rights.
Farhad Moshiri, who bought a 49.9% share in Everton in 2016, is now the club’s majority owner through Blue Heaven Holdings with a 94% stake.
Moshiri has faced increasing backlash from fans as the club reported nearly £400 million in losses over the four years from 2019 to 2023.
These financial setbacks led to the club being penalized a total of eight points for violating the Premier League’s Profit and Sustainability Rules.
In September 2023, Moshiri announced a takeover agreement with 777 Partners, but the deal was delayed as the group struggled to meet the Premier League’s ownership criteria.
The takeover ultimately fell through in June when 777 missed the deadline for the share purchase agreement.
The Friedkin Group became the fourth entity to be granted exclusive negotiation rights by Moshiri without finalizing a takeover, following 777 Partners, Maciek Kaminski, and MSP Sports Capital.
Everton has confirmed their move to a new stadium at Bramley-Moore Dock, scheduled for the start of the 2025-26 season.