June 21 – Dan Freidkin has taken a step closer to the acquisition of Premier League club Everton having agreed a period of exclusivity agreement with club owner Farhad Moshiri.
The Freidkin Group will now begin its due diligence with any deal subject to passing the Premier League’s owners’ and directors’ test, as well as receiving approval from the Football Association (FA) and Financial Conduct Authority.
Neither Everton or Freidkin have said when the exclusivity ends.
Nor has the value of the sale has been announced, but it is believed to be in the region of £400 million for Moshiri’s 94% equity in the club, and doesn’t include the club’s debt. Freidkin has a net worth of about $4.8 billion.
Everton will join a multi-club ownership structure within the Freidkin Group that took control of Serie A’s AS Roma in 2020 for about £500 million. Since then the club has won the Europa Conference League in 2022 with Jose Mourinho as manager.
In June last year the Friedkin Group entered French football after completing a takeover of fourth-tier side AS Cannes.
Freidkin had been one of five parties bidding for the club, including local investors Andy Bell and George Downing who had lent £158 million to the club and were the fans’ favourites to take over.
Moshiri was also in talks with A-Cap who had invested in 777 Partners, the group that had initially agreed a period of exclusivity to complete the deal with Moshiri, but failed when they ran into financial difficulties of their own.
Everton have major financial commitments to keep construction work moving on their Bramley-Moore Dock new stadium while a reported £40 million of outgoings this week for player and staff wages.
With the new Premier League season fast approaching, and the transfer window open, Moshiri and Freidkin are keen to progress the deal. 777 Partners stumbled over the Premier League’s directors’ and owners’ test, principally around their ability to provide proof of finance. Freidkin is not expected to have the same problems.
Everton will become the 10th Premier League club either majority owned or with significant US investment. If Burnley had stayed up and Leeds United had been promoted it would have been 12.
At the Premier League boardroom table, 14 out of 20 clubs is considered a majority.
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