Sport nationDan Friedkin is conducting due diligence on an Everton takeover after 777 Partners failed in their bid to acquire the club. However, a potential issue has emerged regarding the debt owed to 777 Partners, which could impact Friedkin’s takeover plans.
According to The Esk, the debt to 777 Partners, which has been taken over by lenders A-Cap, represents a “potential but not unresolvable” due diligence issue for Friedkin. The debt, which totals over £200m, was incurred by 777 Partners during their failed takeover attempt last season.
Friedkin has already paid off one major debt to MSP Sports Capital, which was a crucial step in his takeover bid. However, the uncertainty surrounding 777 Partners’ status and the debt they owe to A-Cap may still pose a challenge for Friedkin.
The situation is further complicated by the fact that 777 Partners are no longer in control of their football operations, according to Josimar. This has led to concerns about the suitability of 777 Partners to own Everton, and the potential risks associated with their involvement.
Despite these challenges, Friedkin is expected to press on with his takeover bid, which is believed to be in excess of £800m. This figure includes the cost of replacing Farhad Moshiri, as well as investments in the new stadium and squad.
Friedkin’s bid is seen as a more suitable option for Everton than 777 Partners, who were deemed unsuitable to own the club. A-Cap, who are now in control of the debt, are likely to view Friedkin’s ownership as a safer bet than Moshiri’s.
The due diligence process is ongoing, and Friedkin will need to navigate these complexities in order to complete his takeover bid. However, the fact that 777 Partners’ unsuitability to own Everton remains an ongoing factor in Friedkin’s bid does not appear to be causing alarm bells to ring at this stage.
Sport nation
Amina Umar