Everton owner Farhad Moshiri is expected to start talking to new prospective owners, with would-be buyer 777 Partners expected to miss today’s latest deadline to buy the club.
Earlier this month, Moshiri extended a share purchase agreement (SPA) with 777 to May 31, despite the Miami-based investment firm’s well-documented financial and legal challenges and inability to satisfy the Premier League’s conditions for a takeover after eight months.
The SPA is expected to expire at midnight EST without 777 paying off a loan of £158m to MSP Sports Capital and two Merseyside businessmen, George Downing and Andy Bell, leaving Moshiri free to explore other investment options in the financially troubled club.
Everton’s owner told the club’s fan advisory board last week that he had received unsolicited approaches from several interested parties but was legally prevented from engaging with them by the SPA. The Crystal Palace co-owner John Textor subsequently said he had inquired about Everton, although he cannot invest in another Premier League team without selling his 45% stake in Palace, which he is reportedly prepared to do.
The end of the SPA with 777 does not signal the end of Moshiri’s financial predicament or a new dawn for Everton. Technically it does not end 777’s interest in Everton, despite the company facing allegations of fraud in a New York civil court and its co-owners, Josh Wander and Steven Pasko, resigning from the board of its football operations.
Moshiri has ploughed about £450m into Everton but stands to lose most, if not all, of his investment unless a buyer emerges who is willing to take on the club’s debts. Everton have taken loans worth £220m from Rights and Media Funding and £158m from MSP, Downing and Bell, and have relied on loans totalling about £200m from 777 for working capital and the development of their new stadium over the past eight months.
Everton insist their financial position is stable with the next tranche of broadcasting revenue and season-ticket income likely to ease cashflow issues in the short-term. The opening of the transfer window on 14 June also enables Everton to raise funds through player sales, a position confirmed by the manager, Sean Dyche, and director of football, Kevin Thelwell.
