Everton takeover by Friedkin Group completed as Moshiri era is ended

The Friedkin Group has completed its takeover of Everton and brought the turbulent era of Farhad Moshiri to an end.

The US company (TFG), owned by the Texas billionaire Dan Friedkin, agreed a complex deal to purchase Moshiri’s 94.1% shareholding in September. It has acquired Everton through an entity, Roundhouse Capital Holdings Limited, and bought 98.8% of the club in total. Everton recently increased their share capital to convert debt owed to Moshiri’s Bluesky Capital into equity, after changes to Premier League shareholder loan regulations. The loans from Bluesky Capital totalled £451m and have been wiped out.

Friedkin will become the Everton chairman and has appointed Marc Watts, the president of TFG, as the executive chairman. TFG’s chief financial officer, Ana Dunkel, will also serve on a new Everton board of directors. Colin Chong, the club’s interim CEO, will remain in the role until a decision on a permanent CEO is made. Additional appointments will follow in the coming weeks.

Watts said: “Today marks a momentous and proud occasion for The Friedkin Group as we become custodians of this iconic football club. We are committed to leading Everton into an exciting new era both on and off the pitch. Providing immediate financial stability to the Club has been a key priority, and we are delighted to have achieved this. While restoring Everton to its rightful place in the Premier League table will take time, today is the first step in that journey.”

No figure has been placed on the takeover but TFG could eventually pay in the region of £500m. Everton still have long-term debt relating to their new stadium, although TFG has refinanced that with senior lenders at more preferential rates. The takeover received regulatory approval from the Premier League, Women’s Professional Leagues Limited, Football Association and the Financial Conduct Authority and adds Everton to a portfolio that includes Roma and Cannes. It takes to 11 the number of Premier League clubs owned or part-owned by an American investor.

In an open letter to fans, Watts stated TFG’s immediate priority is to stabilise Everton and improve results. He outlined its long-term goals as: “Strengthening the men’s first-team squad through thoughtful and strategic investment. Cultivating home-grown superstars through Everton’s academy. Fostering a distinct on-pitch and commercial strategy for the women’s team. Respecting the club’s traditions and keeping Everton at the heart of the community. Maximising the potential of the new stadium through long-term commercial partnerships and events that benefit the city of Liverpool. Enhancing Everton’s reputation as a unique and historical name in world football.”

Moshiri has taken a huge financial hit for his calamitous tenure. The British-Iranian billionaire invested more than £450m into the club but could walk away with as little as £25m. TFG previously loaned Everton £200m to pay off a £158m loan from MSP Sports Capital and the businessmen George Downing and Andy Bell, and to finalise funding for the stadium at Bramley Moore dock. It has since injected more money to cover day-to-day running costs. “The transaction has seen most of Everton’s debt either converted to equity, repaid or refinanced on terms more favourable to the stability of the club,” Watts said. “Whilst there is much work to be done, and PSR remains a limiting factor in the short term, the underlying financial position is now much stronger.”

TFG agreed to repay some or all of the £225m loaned to Everton by Rights and Media Funding, that carries a 10.25% interest rate, and negotiated the repayment of a £200m loan from 777 Partners, once Moshiri’s preferred buyers for Everton. 777 Partners and its financial backer, A-Cap, are accused of fraud in lawsuits being heard in the US. TFG is unlikely to repay anywhere near £200m – a sum of £60m has been reported but not confirmed. Concerns over the 777 loan prompted TFG to pull out of a deal for Everton in July. The company revived talks with Moshiri two months later to gazump rival interest from the Crystal Palace co-owner John Textor.

Moshiri’s loans needed to be converted into equity before 11 January 2025 for Everton to avoid falling foul of the new associated party transactions (APT) rules. That has been achieved. A profitability and sustainability dispute between the club and the Premier League remains unresolved, however. Everton were docked points twice last season for two PSR breaches but the second case has not concluded owing to a dispute over £16.96m in stadium interest payments. A final decision, that could result in a third points deduction, is expected this season.

TFG’s takeover brings much-needed financial stability to Everton, who squandered a fortune on poor signings in the early years of Moshiri’s tenure and more recently flirted with relegation and administration. Sean Dyche is the eighth permanent manager since Moshiri became the major shareholder in February 2016. Moshiri sacked Roberto Martínez, Ronald Koeman, Sam Allardyce, Marco Silva, Rafael Benítez and Frank Lampard during unsuccessful attempts to improve Everton’s fortunes. Carlo Ancelotti left of his own accord.

Dyche, along with the director of football, Kevin Thelwell, has significantly reduced Everton’s wage bill and worked to a limited transfer budget while preserving the club’s top flight status for the past two seasons. Dyche’s and Thelwell’s contracts expire at the end of the season and TFG’s call for stability is believed to extend to football operations, even though it has overseen a period of managerial upheaval at Roma.

Moshiri said: “Despite a challenging geopolitical backdrop, a significant amount has been achieved over the last couple of years including the delivery of a new sporting department, the stabilisation of our finances and the delivery of our iconic new stadium. I now hand over to new owners confident in the outlook for the club and that our incredible fans will see the success on the pitch that they so thoroughly deserve.”