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Everton creditors fight to take control of Premier League club
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Everton Football Club’s creditors are fighting to buy the Premier League team from its Anglo-Iranian owner Farhad Moshiri, in the latest twist following the collapse of the 777 Partners takeover deal.
Businessman Andy Bell and property tycoon George Downing are competing with US firm MSP Sports Capital to enter exclusive talks with Moshiri, people with knowledge of the matter said.
While Bell, Downing and MSP are central figures due to the loans they provided to help finance the club’s new stadium, people said Everton had received other investment proposals.
The Liverpool-based club has been in limbo since September when 777 agreed to become its next owners. However, Miami’s investment firm failed to meet the conditions required for the league’s approval and its deal with Moshiri. expired last week.
BDT & MSD Partners, a commercial bank and investment firm, is ready to provide financing to the club as part of an acquisition, people with knowledge of the matter said. The U.S. bank has not yet agreed to back any of the lenders, these people said, but is willing to back the most credible buyer.
BDT & MSD, Moshiri, Everton and Bell declined to comment. MSP and Downing have been contacted for comment.
U.S. insurance group Advantage Capital Holdings, a major 777 creditor, made a separate proposal, a person with knowledge of the matter said. Bloomberg previously reported that A-Cap had offered to refinance all of Everton’s existing debt and take a minority shareholding position, with Moshiri retaining a majority stake.
A-Cap did not comment on the proposal, but previously told the Financial Times that it was now a “senior secured creditor of the club”.
Following its offering in September 2023, 777 has provided more than $200 million in loans to Everton. The apparent debt shift to A-Cap follows the Miami company’s decision to appoint a external restructuring company following clashes with 777’s creditors and the collapse of its reinsurance financing structure in Bermuda.
A-Cap reduced its exposure to 777 after state regulators and U.S. ratings agencies raised concerns.
Everton are one of the most successful teams in the history of English football, having been crowned champions of England nine times, although the most recent of these triumphs came in 1987.
The loss-making and debt-ridden club has struggled since its finances were hit by the coronavirus pandemic, which meant matches had to take place in empty stadiums. Another blow came when Russia invaded Ukraine, forcing Everton to cut ties with sponsors linked to oligarch Alisher Usmanov, Moshiri’s former business partner who was placed under sanctions.
Meanwhile, Everton have had to finance the construction of a waterfront stadium designed to increase match-day revenues compared to their current home, Goodison Park.
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MSP, Bell and Downing are among the investors who have provided around £160 million in loans to help finance the Bramley-Moore Dock stadium. Rights and Media Funding, which has also financed Spanish La Liga clubs, is another creditor.
Bell, who founded British broker AJ Bell, and Downing are Everton fans. MSP, led by American-Iranian businessman Jahm Najafi and former sports agent Jeff Moorad, owns a minority stake in McLaren Racing, which competes in Formula 1 and other motorsport competitions.
Everton’s net debt rose to around £330 million at the end of June 2023, from £141 million a year earlier. These numbers do not include the debt associated with the A-Cap and the 777.