Inside Everton’s Friedkin Takeover: From the Brink to New Hope with a U.S. Investor

The phone call that reshaped Everton’s future occurred just as another group was on the verge of finalizing its own takeover agreement.

In late June, the Friedkin Group (TFG), based in Houston, Texas, outmaneuvered Everton supporters Andy Bell and George Downing to secure exclusivity with then-majority shareholder Farhad Moshiri.

Bell and Downing, supported by MSD, the family office of American billionaire Michael Dell, were just days away from clinching their own exclusivity agreement with Moshiri. However, within a week of their declaration of intent in early July, TFG had gained a significant advantage.

Importantly, they provided another lifeline to a club that had been struggling to remain stable.

Under the terms of the exclusivity deal with Moshiri, TFG delivered an immediate £200million ($250m). It also assumed another £150m loan from the American firm MSP Sports Capital, which involved Bell, Downing, and Moshiri, while supplying additional funds to manage day-to-day operational costs and payments for the new stadium project at Bramley-Moore Dock.

These loans and all other short-term debts will now transition into a combination of equity and long-term senior debt, backed by the new stadium, leading to a substantial enhancement of the club’s financial standing.

Moshiri invested approximately £800m during his ownership, including £450m in shareholder loans. Nevertheless, the club’s financial status became increasingly precarious when his funding ceased. By the end, they found themselves depending on loans—from 777 Partners’ high-interest short-term advances to longer-term backers RMF—to survive.

TFG had previously expressed interest in Everton, viewing some of the club’s community-oriented values as influential benchmarks, even before acquiring Roma in 2020. It was highly placed on the initial pitch list established by Deloitte’s Sports Business Group, appointed by Moshiri to oversee the sales process in 2022.

The arrival of TFG has been regarded by many within the takeover process—as those involved in this account speak to eScored anonymously to safeguard their relationships—as a potential best-case scenario for Everton, particularly in light of recent struggles.

Led by president Dan Friedkin, son of founder Thomas H. Friedkin, TFG has annual revenues of £10billion. Most of its profits originated from selling Toyota vehicles in the United States, but it has also expanded into entertainment, film, and luxury travel. The group has a recent, albeit mixed, history in sports, owning the Italian club Roma and the French fourth-tier team Cannes, a factor deemed favorable by deal-makers as their understanding of the sports industry enabled TFG to act swiftly.

Conversely, rivals Bell and Downing have always been seen as reluctant contenders, positioned as buyers of last resort. Although they had vested interests in the form of loans provided to the club and frequently attended Goodison’s executive lounges, they were ready to step back if a better prospect emerged. To them, TFG was indeed that.

The announcement of TFG’s exclusivity with Moshiri promised to conclude years of uncertainty and upheaval at Everton, a club that had long sought new ownership.

During this tumultuous period, while a financially constrained Moshiri sought an exit strategy, the club desperately needed to find solutions to fulfill its financial obligations.

Founded in 1878 and a key player in establishing the Premier League, Everton has competed in English football’s top division since 1954. However, after facing three consecutive relegation battles and two violations of the Premier League’s profit and sustainability regulations (PSR), the club was operating under a skeleton, interim board created to manage MSP’s minority investment in the summer of 2023.

As was to be expected from Moshiri’s time at the helm, a final twist would emerge.

A month after obtaining exclusivity, TFG withdrew from discussions, expressing concerns regarding Everton’s debts, and once again uncertainty loomed large. John Textor, the American owner of the Eagle Football Group, which holds a 45 per cent stake in Premier League club Crystal Palace, attempted to negotiate a deal with Moshiri, only for TFG to dramatically return to negotiations in September and finalize agreements.

TFG’s acquisition of Everton, through Roundhouse Capital Holdings, a subsidiary within the group, has now been finalized, effectively ending years of instability at Goodison Park.

TFG representatives have been present in Merseyside since early December, awaiting final approval. The Premier League communicated to all involved last Thursday, after a board meeting, that it was inclined to approve the transaction, and this was confirmed by an independent oversight panel on Wednesday.

Approval from the Financial Conduct Authority (FCA), one of three organizations alongside the Premier League and the Football Association that must authorize any takeover, was also granted late last week. The transaction was officially completed late on Wednesday, and TFG representatives, including newly appointed executive chairman Marc Watts, are scheduled to attend Goodison Park on Sunday for the home match against Chelsea.

This saga has been characterized by patience and numerous ups and downs. Here, eScored covers:

• Why TFG maintained a long-standing interest in Everton
• The group’s initial priorities now that the deal is finalized
• How Moshiri’s financial circumstances left the club scrambling to fill funding gaps
• Why some insiders believed administration could ultimately be advantageous
• The lesser-known executives who played pivotal roles in securing the future.

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Summer 2023 marked a critical juncture for Everton, viewed as a distressed asset in the takeover discussions. The club’s financial demands, intensified by a costly stadium development, were nearly unbearable.

In its report on Everton’s 2022-23 accounts, auditor Crowe UK pointed out a “material uncertainty” regarding the club’s ability to continue as a going concern should relegation occur. Sean Dyche stepped in as manager mid-season, and it required a dramatic second-half goal from Abdoulaye Doucoure on the final matchday to keep Everton in the Premier League.

Everton had long depended on Moshiri, who became majority shareholder in 2016, to absorb significant losses—totaling £400m between 2018 and 2023—and assist in funding their £760m new stadium project along Liverpool’s waterfront. However, managing short-term, high-interest debts became increasingly challenging.

It is typical for elite clubs to operate at a loss, supported by affluent benefactors like Moshiri, but Everton’s figures were alarming.

The issue stemmed from the fact that Moshiri’s funding streams had dried up.

In March 2022, shortly after Russia’s illegal invasion of Ukraine, Everton severed sponsorship ties with organizations linked to his close associate, Alisher Usmanov, a sanctioned oligarch of Uzbek origin. This action curtailed Moshiri’s access to funding sources.

That season, Moshiri first mulled over selling the club. He engaged in exclusive talks with the lesser-known KAM Sports, led by Minnesota real estate mogul Maciek Kaminski, but the deal disintegrated quickly when the proof of funds failed to materialize.

Following that, Moshiri reiterated his commitment to Everton, asserting the club was not for sale, yet many familiar with the circumstances believe the delay in initiating a formal sales process was a critical mistake.

During this time, the governance of the club had arguably reached its most dysfunctional state. According to sources consulted by eScored, Moshiri, though well-intentioned, was poorly guided and had lost faith in his management team.

Accounts suggested that two disparate factions existed within Everton: one operating from Liverpool under former chairman Bill Kenwright and CEO Denise Barrett-Baxendale, the other being Moshiri, who was based in Monaco or London. The lack of alignment resulted in damaging disconnections and inefficiencies in decision-making.

The initial sales process was unsurprisingly ineffective. The club was marketed by various parties, many of whom claimed to represent Moshiri or other club officials, but there was little coordination or clarity.

At least one potential buyer left with the impression that Moshiri or his associates were never genuinely interested in selling, despite their denials that the club had been on the market in recent years.

Financial services firm Deloitte was eventually brought on board, ahead of merchant bank Raine, to orchestrate a formal sales process via Moshiri’s Blue Heaven Holdings.

The first real solution to Everton’s financial predicaments came from MSP Sports Capital, an American investment group led by former agent Jeff Moorad and businessman Jahm Najafi.

As reported by eScored’s Matt Slater, MSP was close to finalizing minority investment in Everton as part of a complex deal that would have seen them invest an initial £150m in convertible debt for an eventual 25 per cent stake, but retreated when the arrangement was obstructed by one of Everton’s other lenders, Rights and Media Funding (RMF).

Similar to many of the club’s creditors, RMF, a relatively unknown lender based in Cheshire, North-West England, possessed a change of control clause, granting it a significant role in any takeover discussion. It was viewed by others involved in the process as a key stakeholder that required satisfaction.

RMF, which had provided a £200m loan secured against club assets, was unwilling to relinquish its position amid concerns of potential default and believed MSP was not contributing sufficient capital in relation to its equity.

Other stakeholders felt that the loan to Everton’s stadium holding company did not meet their expectations and required a more comprehensive approach to address the club’s broader financial needs.

The only remaining option at that point was the controversial Miami-based 777 Partners, which had also expressed interest prior to MSP’s exclusivity agreement.

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In desperate need of funds, a deal was struck with 777 just three weeks after MSP exited.

While 777 was not viewed as a perfect resolution, it could assist Everton in meeting their immediate financial obligations. Until the final stages, when Moshiri was able to select from a roster of bidders, most decisions were made under duress.

Even then, negative opinions surrounded 777 and its co-owner, Josh Wander.

777 initially gained some credibility through its football CEO, Don Dransfield—a respected former executive with the City Football Group, which has Manchester City at the center of its multi-club model—and the financial institutions, including the boutique sports finance firm Tifosy and a stream of reputable investment analysts, working on its behalf.

Those close to the deal were aware of the swirling rumors around 777 and the series of negative reports about its inability to meet financial commitments, but due diligence from stakeholders on all sides failed to uncover anything that would obstruct its bid.

Within the terms of its agreement with Moshiri, 777 provided the club with regular loans of approximately £20m to maintain payments to stadium builder Laing O’Rourke.

The initial vision for the development was for Moshiri to cover the early stages, before seeking external financing for the project’s completion. Usmanov’s USM was set to secure a naming rights deal, estimated to be worth £200m.

However, those plans were dashed by sanctions, leaving Everton scrambling to fill the funding void on short notice. The decline in their on-field performance and precarious PSR standing rendered the club less attractive to prospective owners, compounded by the global geopolitical crisis. The MSP and 777 agreements were aimed at mitigating the issue.

When the 777 deal was arranged in September, expectations were that the takeover would close by the end of 2023, but it wasn’t until March 2024 that 777 received conditional approval from the Premier League. The FCA and the Football Association (FA) had already granted approval.

The precise terms outlined by the Premier League remain undisclosed, but they were believed to involve repayment of MSP’s nearly £160m loan, assurance of funding for the financial segment of Everton’s new stadium project, and capital deposited in an escrow account to aid the club’s cash flow until the season’s end.

These conditions were perceived as significant challenges for a group that had encountered financial struggles, yet several sources believe they would not have been barriers earlier in 777’s trajectory.

Had 777 met those conditions, Everton could now find itself in a similar position to other clubs in its portfolio, such as Belgium’s Standard Liege and Brazil’s Vasco da Gama, both of whom are urgently searching for new owners following the collapse of the Miami group. Genoa, the Italian side it first acquired in Europe’s top five leagues in 2021, was sold this week to Romanian entrepreneur Dan Sucu.

The delays in either approving or denying 777’s bid could have been devastating for Everton, given their reliance on monthly loans to pay operational costs.

At that moment, the club’s debt nearly reached £1bn, including £450m in shareholder loans that Moshiri was anticipated to write off. As the urgency for cash intensified, the club became heavily dependent on high-interest loans. Each failed takeover further burdened their debts, erecting additional barriers for potential bidders.

However, the truth was that 777 needed Everton just as much as the club required them. 777 had attempted and failed to secure investment through its football operations via Tifosy, and adding Everton—a prestigious Premier League club—to its portfolio could simplify raising capital.

777 financed Everton through RMF’s debt facility, fulfilling its financial obligations through the conclusion of the last season. During this period, both Wander and other 777 affiliates were regularly present at Everton matches.

The takeover, which had been teetering on the brink, kept alive through repeated extensions from Moshiri, ultimately collapsed in June when 777’s purchase agreement expired. A prevalent complaint was that Moshiri failed to see the overall picture regarding the 777 arrangement, which appeared to be doomed.

On the flip side, those familiar with the developments suggested that 777 upheld its purchase agreement and helped Everton navigate a financially difficult period.

While it adhered to its contractual obligations, Moshiri found it challenging to terminate the agreement without incurring a significant financial penalty.

However, as it became evident that 777 would not finalize the transaction, he quickly moved on to explore other options.

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As the 2023-24 season concluded, Everton found itself once more in a rush for new investment, but this time Moshiri had viable alternatives—albeit some were not very attractive.

With speculation of financial collapse swirling, potential investors gathered around. One offer presented during that period nearly anticipated administration.

As last season came to a close, Everton engaged financial advisors from Teneo to devise a feasible path forward.

Some prospective investors argued that entering administration could ultimately benefit Everton, clearing away unmanageable debt and providing a fresh start. With the team comfortably above the relegation zone in the Premier League, they could have absorbed the nine-point deduction associated with administration without facing relegation.

However, Moshiri and other club executives dismissed this possibility. He aimed to protect his investment, and administration would likely have left him with nothing. There was recognition of the human cost, including potential job losses and reputational harm, associated with such measures.

By continuously extending the repayment dates for MSP’s loans and the 777 contract, he temporarily closed off this option.

The ongoing concern always revolved around what, if anything, would take 777’s place if the deal fell apart. Fortunately for Moshiri, tangible options emerged this time.

Several bidders patiently awaited their chance while the club proceeded with 777, unable to engage during the exclusivity period. Interest stemmed from the Middle East but predominantly the U.S. Some potential buyers were deterred by the existing 777 debts, subsequently assumed by its principal creditor, A-CAP, an American insurance company.

Everton became increasingly appealing than it had been merely twelve months ago when MSP withdrew. They retained their Premier League status, notwithstanding two separate point deductions for infractions against PSR, and their new stadium was nearing completion. Investors saw an opportunity.

Bell and Downing were initially the leading candidates and seemed poised to finalize a deal. Their offer, backed by MSD and facilitated by Manchester firm Zeus Capital, combined debt and equity elements.

MSD committed to a significant loan, secured against Everton’s new stadium, with Bell and Downing anticipated to contribute roughly half of the £200m equity portion. MSD intended to garner additional funds through connections to celebrities willing to invest as minority shareholders alongside Bell and Downing.

The takeover was perceived as the most feasible option before TFG’s arrival, which ultimately eclipsed Bell and Downing’s plans by securing exclusivity with Moshiri.

TFG had shown serious interest in Everton from the outset. They recognized the club’s rich history and worldwide fan base, considering it one of the last significant Premier League institutions available. While other potentially stable clubs were being marketed, Everton was regarded as having untapped potential and a higher ceiling.

After years of attempting and failing to realize a new stadium at Roma, TFG viewed the construction of the new venue on Liverpool’s waterfront as a considerable asset. They appreciated the club’s impactful community initiatives.

Beautiful. 💙 pic.twitter.com/444Rw38BJA

— Everton Stadium (@EvertonStadium) December 12, 2024

Yet, they initially encountered a significant obstacle.

The situation concerning 777 and A-CAP created apprehension among prospective investors, including TFG at the outset. Legal proceedings were ongoing in New York against both parties by various plaintiffs, including UK firm Leadenhall.

Leadenhall claimed that 777 had double-pledged assets to them as collateral on loans. They contended they were entitled to funds owed by ACAP and 777. The litigation remains active in New York, with A-CAP branding Leadenhall’s assertions as “baseless”.

Following extensive due diligence conducted by a team of lawyers, TFG ultimately deemed the risk and ambiguity surrounding an Everton acquisition unacceptable—especially while the A-CAP loan remained unresolved.

eScored has been informed by sources familiar with the situation that TFG felt pressured by the investment community in the U.S. to believe it was overpaying for the club, similar to the perception of its acquisition of Roma.

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TFG’s exit from discussions dealt a bitter blow to Everton, which had seemingly been on the verge of resolution.

However, Moshiri, aided by Deloitte, continued to explore alternatives.

Bell and Downing opted against re-entering negotiations, and an offer from Textor, part-owner of fellow Premier League outfit Crystal Palace, was given serious consideration. While the American made headway in communications with Moshiri and openly expressed his confidence during a press conference in France, where his Eagle Football Group owns Lyon, he faced substantial challenges.

Premier League regulations prohibit owners from possessing stakes in two clubs. Textor needed to divest his Palace shares, but there was no indication that a deal was imminent, with Everton urgently seeking certainty.

He also needed consensus from at least four key stakeholders to complete a transaction for Everton. In addition to Moshiri, Textor would need to negotiate with existing lenders RMF, A-CAP, and TFG. This made it a considerable challenge for any prospective new investor, not merely Textor.

While Textor’s involvement could have pressured TFG to act, it initially insisted on the full repayment of its £200m loan to Everton before it would approve the arrangement.

TFG showed little interest in shares of Textor’s Eagle Football Group, which could have been a potential repayment method, as he sought to raise capital for his Everton investment through an initial public offering—essentially a public listing.

Had TFG not re-engaged, Moshiri would have likely had to continue pursuing Textor’s offer, as the latter’s Palace shares remain unsold.

In one aspect, stepping back from exclusive talks with Moshiri proved advantageous for TFG. They retained a strong position, remaining out of the spotlight.

TFG never fully disengaged. As a significant creditor, they were in ongoing communication with officials and key stakeholders, keeping abreast of developments.

Discussions with other lenders revealed a viable deal was possible, and TFG was the only player poised to act immediately.

Subsequent legal consultations indicated there was indeed a way to settle the A-CAP predicament, and the U.S. insurer seemed increasingly amenable to a resolution.

TFG stepped away from negotiations before acquiring Roma in 2020, and four years later, they replicated the strategy with Everton.

TFG effectively sidelined Textor, mirroring their earlier tactic against Bell and Downing. They could have rested on their rights, taking complete ownership of the club by default come June should repayment of their loan not be fulfilled. That was the counsel of some involved in the process, but those close to the group indicated a strong desire to act at Everton and safeguard their investment.

During a pivotal weekend in September, a comprehensive agreement for Moshiri’s 94.1 per cent stake was reached, on terms slightly more favorable than previously. TFG has since issued additional loans to Everton, reportedly in the tens of millions, increasing its ownership to 99.5 per cent through an expanded share issuance.

The process required three months for TFG’s bid to gain regulatory validation. Throughout this timeframe, nods were required from the Premier League, the FA, and the FCA. The complexities surrounding A-CAP and Leadenhall were greater, but the takeover unveiled the green light as the latter has not yet contested it.

A-CAP’s debt has been restructured for repayment in stages, with RMF’s loan set to be refinanced with a different lender under more favorable terms, thereby severing the latter’s ties with the club.

The preceding months have seen TFG working to comprehend the club’s operations and what is necessary for its revival. Officials from the group have maintained regular dialogues with colleagues at Everton and toured club facilities, including the new stadium.

Some have attended matches, although Dan and his son Ryan Friedkin have not done so yet. There has been an initial emphasis on harnessing the commercial prospects arising from the new state-of-the-art venue on the city’s waterfront.

Among the club’s interim management team, including interim CEO Colin Chong and executives like chief financial officer James Maryniak and chief legal counsel Katie Charles, a positive view has been formed regarding their efforts to navigate through turbulent times. Maryniak and Charles, in particular, have been recognized as unsung heroes, tirelessly working towards a favorable resolution.

There has also been acknowledgment of Bell and Downing for their financial support and guidance during a crucial juncture. Discussions regarding Bell and Downing potentially joining TFG’s new leadership in some role have not been ruled out.

The futures of manager Dyche and director of football Kevin Thelwell need timely resolution, as both have contracts expiring at the season’s close. Currently, it seems TFG will prioritize filling senior leadership positions within the club before making decisions related to the football department.

Dyche, along with others prior to him, has faced constraints in the transfer market, given significant player departures like Anthony Gordon and Alex Iwobi aimed at balancing the financial books. He has publicly noted in recent weeks that he has yet to converse directly with TFG.

TFG has expressed a positive view regarding some of the efforts made by the football department, especially during challenging times, but no definitive decisions have been communicated as of yet.

Watts has been appointed as executive chairman, and in an open letter to fans upon the announcement of the agreement, he laid out a set of priorities for TFG, which include “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, and respecting the Club’s traditions while keeping Everton deeply connected with the community”.

Ana Dunkel, TFG’s chief financial officer, also joins the board, while Chong continues in his role as the search for a permanent CEO, conducted through executive recruitment firm Nolan Partners, is ongoing. Additional appointments are expected in the future.

No matter the leadership structure, the prospect of new—and much-needed—investment into the team is seen as a significant positive.

Moshiri, for his part, departs the scene after incurring substantial financial losses. He will receive a minor sum upon the transaction’s completion, believed to be in the tens of millions, with deferred payments anticipated further down the road.

Individuals affiliated with the former Everton owner have downplayed the notion that he will profit as little as £40m from the acquisition, yet the total amount he ultimately stands to gain will be only a small fraction of his £800m investment.

During Moshiri’s eight-year reign, Everton experienced regression. Although his search for funding became fraught, he succeeded in selling the club to more reputable investors who appear eager to rectify previous mismanagement. Other offers, including Textor’s, might have been better financially for him, but TFG brought with it assurance and respectability.

Moshiri made numerous miscalculations while at the helm, yet he leaves having facilitated the construction of a new stadium, largely within budget and timelines, which has subsequently played a crucial role in attracting new investment.

A primary barrier to progress for Everton has been financial constraints and debt, which have already shown improvement on the very first day of the takeover. With Moshiri having transformed his loans into equity and various debts set for refinancing at long-term, low-interest rates, that burden has been lifted.

Likewise, the “existential threat” he once characterized as facing one of the oldest and most storied institutions in English football seems to have dissipated.

Those at the beleaguered club can now breathe more easily and, hopefully, look forward to a promising future along the banks of the Mersey under new American ownership.

(Photos: Getty Images; design: Dan Goldfarb for eScored )