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 and proposed new Everton chairman Dan Friedkin, agreed a complex deal to purchase Moshiri’s 94.1% shareholding in September. Through its entity Roundhouse Capital Holdings Limited it has acquired 98.8% of the shares in Everton and converted the club’s short-term debt to equity.

It has received regulatory approval from the Premier League, Women’s Professional Leagues Limited, Football Association and the Financial Conduct Authority to add Everton to its football portfolio alongside Roma, and takes to 11 the number of Premier League clubs owned or part-owned by an American investor.

Friedkin has appointed Marc Watts as Everton’s executive chairman. 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.”

Although the cost of the takeover has not been disclosed, the deal could cost TFG about £500m. Moshiri has taken a huge financial hit. The British-Iranian billionaire invested more than £450m into the club but could walk away with as little as £25m. TFG had 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 club’s new stadium at Bramley Moore dock. It has since injected more money to cover day-to-day running costs. That injection, plus other short-term debt, is understood to have been converted to equity.

TFG has also 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.

TFG is understood to have resolved other outstanding issues related to Everton’s debt, including transferring some debt to new senior lenders at better rates. Moshiri’s loans to the club, via Bluesky Capital, had to be converted into equity before 11 January 2025 for Everton to avoid falling foul of the new associated party transactions (APT) rules. A profitability and sustainability rules dispute between the club and the Premier League has also to be settled. 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.

The Premier League said its board had “approved The Friedkin Group’s 98.8% acquisition of Everton Football Club, following the completion of the league’s owners’ and directors’ test” and that the takeover had been ratified by an independent oversight panel.

TFG’s takeover will bring 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.

Everton said: “Everton Football Club has been acquired by Roundhouse Capital Holdings Limited (Roundhouse), an entity within The Friedkin Group.”