The potential takeover of Everton by the Friedkin Group will not go ahead, the club have announced.
The group, led by American billionaire Dan Friedkin who also owns a controlling stake in Italian side Roma, entered a period of exclusivity to negotiate a possible purchase on June 21.
However, the club said on Friday that no deal had been struck between Friedkin and Everton majority owner Farhad Moshiri’s company Blue Heaven Holdings.
Joint Statement - Blue Heaven Holdings and The Friedkin Group.https://t.co/LQPvOGEGz2 pic.twitter.com/moeboDkzs7
— Everton (@Everton) July 19, 2024
“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,” a statement from the Merseyside club read.
“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.”
Everton said the Friedkin Group would remain a lender to the club, who were twice docked points last season over breaches of Premier League financial rules.
“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,” the Everton statement added.
An injection of £200million – covering working capital and the repayment of a debt to other lenders – triggered the Friedkin Group’s exclusivity period, and it is understood the Friedkin Group has no intention to call in those debts.
However, the continued uncertainty surrounding 777 Partners, and that company’s biggest financial backer A-CAP, is understood to have been an insurmountable issue for the Friedkin Group in proceeding with a takeover.
Miami-based firm 777 had been providing Everton with funding cover after it agreed a takeover deal last September which finally collapsed at the end of May this year.
That debt to 777 was a cause of concern for the Friedkin Group – not because of an inability to pay but due to the risk of becoming embroiled in civil and criminal actions against 777 in various jurisdictions.
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