Sport nationThe proposed takeover of Everton Football Club by Dan Friedkin’s Friedkin Group has hit a snag, according to finance expert Stefan Borson. Despite paying off the club’s £158million debt to MSP Sports Capital, a significant step forward in the takeover process, Borson warns that “big issues” still need to be addressed.
The main concern is the £200million debt owed to 777 Partners, a US investment firm that loaned Everton the money to cover operational costs after agreeing to buy the club last September. Although the deal fell through, the debt remains, and Borson believes it’s a significant obstacle to the takeover.
“Everton are not out of the woods yet in terms of their levels of debt,” Borson told Football Insider. “We don’t actually know what the deal is that Friedkin’s agreed with Moshiri. It’s not done yet, and there are still, from a balance sheet perspective, big issues with Everton.”
Borson’s concerns are echoed by the fact that the Premier League has yet to approve the takeover. While paying off the £158million debt to MSP Sports Capital was a necessary step, the league will likely want assurances that the club’s finances are stable before giving the green light to the takeover.
The situation is complex, with multiple parties involved and significant amounts of money at stake. Friedkin’s group has agreed to buy Farhad Moshiri’s 94.1% stake in the club, but the deal is contingent on several factors, including the resolution of the debt issue with 777 Partners.
Everton fans will be anxious to see the takeover completed, but Borson’s warnings suggest that there is still much work to be done. The club’s financial situation is precarious, and the debt owed to 777 Partners is a significant burden that needs to be addressed.
In addition to the financial concerns, there are also questions about the long-term viability of the club under new ownership. Friedkin’s group has promised to invest in the club and improve its fortunes, but the proof will be in the pudding.
For now, Everton fans will have to wait and see how the situation unfolds. The club’s future is uncertain, and the next few weeks will be crucial in determining its fate. One thing is certain, however – the takeover is far from a done deal, and there are still many hurdles to overcome before it can be completed.
In conclusion, the proposed takeover of Everton Football Club by Dan Friedkin’s Friedkin Group is facing significant challenges, according to finance expert Stefan Borson. Despite paying off the club’s £158million debt to MSP Sports Capital, the £200million debt owed to 777 Partners remains a major obstacle to the takeover. The situation is complex, and the club’s financial situation is precarious. Everton fans will be anxious to see the takeover completed, but it may be some time before the situation is resolved.
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