The Toffees are once again back in crisis
A proposed takeover headed up by The Friedkin Group to buy Everton is officially off.
The Athletic reported on Friday that the Texas-based owner, who also own Serie A outfit Roma, have pulled out of the deal – leaving the Merseyside club in crisis.
Friedkin Group (TFG) had emerged as a potential buyer last month after a deal previously agreed by another American investment group, 777 Partners, ended up collapsing.
Why is the Everton deal off?
One of the biggest motivations behind TFG’s decision to end negotiations was due to concerns over the club’s debt to 777.
While in negotiations with the Miami-based group, the Toffees borrowed £200m ($258m) of money from them however they are now owned by American insurance firm A-Cap – who were the original source of the money.
TFG have also given Everton a £200m loan but are concerned with the finances of the club, plunging Everton’s immediate future into serious doubt.
All in all, Everton owes more than £600m to three separate groups as well as £450m in shareholder loans to current owner Farhad Moshiri.
What will happen to Everton?
As Everton have tried to balance the books the best they can, their form has also deteriorated.
For several years now, the side have been embroiled in relegation battles and been forced to wheel and deal in the market.
They’re currently on the verge of selling prized asset Amadou Onana to Aston Villa for £50m and recent news will only further test their resolve to keep Jarrad Branthwaite given interest from Manchester United.
Sean Dyche has largely been forced to wheel and deal in the transfer market too, resorting to loans and free signings.
Additionally, there is also the impending move to their new Bramley Moore-Dock Stadium next season – which they are still some £70m short of paying off.
Premier League survival will once again be detrimental to their future both in the short term and long term as they await to find new buyers.
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