After a prolonged period of uncertainties, Everton FC is poised for a takeover, of course subject to regulatory approvals. The club released an official statement yesterday proclaiming the takeover agreement with The Friedkin Group (TFG) where Farhad Moshiri’s Blue Heaven Holdings has agreed to sell its 94% stake
This would probably bring a sense of much-needed stability to the club and its fans following a tumultuous period of on-and-off sale discussions with multiple potential partners. Even the final sale was nothing less than a drama. On the sporting side, Everton was on the tenterhooks last season with a potential relegation-situation after having points deducted twice for breaching the Premier League’s Profitability and Sustainability Rules (PSR) followed by enough difficulty this season, where the team is placed at second-bottom of the table with one point after five games
Thus, the sale to TFG brings in a new ownership and a new era
The Timeline
Farhad Moshiri, a former Arsenal shareholder, first bought a 49.9% stake in Everton in 2016 which he increased to 94.1% by January 2022 with a capital injection of £100mn. As per reports, Moshiri has invested more than £750mn in the club since his first stake purchase. Then came the Russian invasion of Ukraine which hit the club hard after having to suspend commercial sponsorship with USM Holdings, part owned by Alisher Usmanov, a long time business partner of Moshiri, whose assets were frozen by the EU. This forced Moshiri to resign from his role as the chairman and since then he has been searching for a buyer
In May 2023, Everton reached an exclusivity agreement with New York-based company MSP Sports Capital for investment but talks collapsed in August. In 2023 another potential stake sale fell through when Miami-based investment fund 777 Partners failed to provide necessary financial conditions outlined by the Premier League
In June 2024, TFG had reached an agreement in principle to buy the 94% stake but talks were called off a month later over concerns on loans which the club had taken up with other investors. Since then, Everton has been in negotiations with American businessman John Textor, part owner of Crystal Palace and Olympique Lyonnais among others, and reached a period of exclusivity agreement which was due to expire on Nov. 30. The Friedkin Group suddenly re-entered the race to buy Everton and managed to acquire in what mirrors a dramatic sale
Enter the MCO Era
The purchase by TFG starts a new era at Everton FC (subject to regulatory approvals) as it enters the multi-club network. TFG led by Dan Friedkin is also the owner of:
- Italian Serie A club AS Roma, which he purchased in 2020 for reportedly €591mn
- The French fourth tier side AS Cannes, where he became a majority investor in 2023
Also, with this stake transfer Everton becomes the 15th club to join the existing group of clubs having links or are connected with multi-club ownership groups in th 2024/25 Premier League season. Further, it becomes the 11th club with an US ownership, either partial or full
The Next Chapter
Evertonians will be keenly hoping this chapter brings a period of stability and growth with all the turmoil they have faced in the previous years. On the other hand, The Friedkin Group will be facing an immense business challenge, both at Everton, to rebuild as well as at AS Roma where the club recently sacked the coach and Chief Executive quit, almost simultaneously, leaving horde of irate and disappointed fans
We wish the new owners all the best
