Dan Friedkin’s takeover of Everton is set to progress within the next 24 hours, but it comes amid financial concerns.
Friedkin has signed an agreement for exclusive negotiations with Farhad Moshiri, likely leading to the US billionaire acquiring the club.
Despite potential complications from Friedkin’s ownership of AS Roma, the 59-year-old is seen as a more credible investor compared to 777 Partners.
Friedkin faces significant challenges at Everton, where the club has struggled with Profit and Sustainability regulations and cash flow issues in recent years.
The latest financial reports from Goodison Park highlight the scale of the challenge for Friedkin.
Everton currently holds two unfavorable Premier League records. According to Deloitte’s Annual Review of Football Finance, Everton is the only club whose revenue and wage bill both decreased in 2022-23, the most recent season with available financial data.
Their turnover dropped from £181m in 2021-22 to £172m the following season, and the wage bill decreased from £172m to £166m in the same period, reductions of five and four percent, respectively.
The wage bill reduction reflects Everton’s efforts to manage costs, but it underscores the difficult financial situation they are in.
A formal update on the Everton takeover is expected soon. Football finance writer and Everton supporter The Esk predicts that a significant step in Friedkin’s takeover will occur shortly.
On X, The Esk mentioned that a charge from Blythe would soon be removed from the subsidiary company handling Everton’s stadium construction at Bramley Moore Dock.
Blythe represents MSP Sports Capital, the private equity group that loaned Everton over £150m before their failed takeover attempt.
The removal of the Blythe charge and the appearance of a new one on the Companies House register would indicate that Friedkin has taken over the loan from MSP.
This marks significant progress in a lengthy takeover process that has lasted over a year.
Once Friedkin finalizes terms with Moshiri, the final stage will be Premier League approval, which is expected to proceed smoothly.
