The proposed purchase of Everton FC by the Friedkin Group will not proceed after the Club confirmed that negotiations between Blue Heaven Holdings and the Texas-based firm have ended.
A joint statement from Everton and TFG read, in part:
Following a period of exclusivity, discussions between Blue Heaven Holdings and The Friedkin Group over a potential sale of a majority stake in Everton have ended and The Friedkin Group will not be progressing with a purchase of the Club.
Both Blue Heaven Holdings and The Friedkin Group entered discussions in good faith to explore whether a sale could be agreed. Those discussions have concluded. The parties agree it is in both their interests for Everton to explore alternative options.
The Friedkin Group will remain a lender to the Club and is proud to have played a key role in enabling the new stadium to be built, which will help ensure a bright future for both Everton and the City of Liverpool.
Dan Friedkin and his firm were granted exclusivity to pursue a takeover last month and had backed up their intent to buy the Club by paying off the £158m owed to MSP Sports Capital, but reports now claim that TFG cited the risks associated with the debt owed to previous bidder 777 Partners as the reason for their withdrawal from talks.
The Miami-based investment firm lent Everton around £200m, largely to help fund the ongoing construction of the new stadium at Bramley-Moore Dock before being plunged into crisis earlier this year when their Australian budget airline, Bonza, collapsed and they were sued in a $600m New York Civil case by Leadenhall Capital Partners of London.
The source of the funds loaned to Everton has since been revealed to be New York insurance outfit A-CAP who were also implicated in the lawsuit and reports suggest that the Friedkin Group decided that that debt and legal situation was “simply too fraught with risk” after A-CAP refused to take a discount on the amount 777 is owed.
The termination of the proposed takeover comes just a day after an uncorroborated report claimed that the deal was “on track” and it throws Everton back into crisis themselves, although both Alan Myers of Sky Sports and Shamoon Hafez of the BBC claim that the Club is “well-funded” for the time being.
According to a tweet by Dave Powell of the Liverpool Echo, TFG deal “[w]on’t be seeking [a] quick return after paying off MSP loan” and that they “will work with whoever is next potential owner to find best solution for all parties”.