Everton badge, Dan Friedkin
Dan Friedkin is set to be the new Everton owner.
Pranav Shahaney
Thu 5 December 2024 12:10, UK
The Friedkin Group are in talks with JPMorgan Chase & Co. over restructuring the balance sheet of Everton post the takeover, according to Bloomberg.
The news outlet reported on 5 December that the American group are in talks with the world’s largest bank (S&P global) to raise debt to restructure the club’s loans, which are £660million.
There is a debt “burden” at the club and this may potentially help reduce interest payments and stretch the debt over a more manageable timeframe.
The Friedkin Group show their initial intentions to make Everton well run in terms of finances
This process could involve converting high-interest loans into new debt with lower interest rates, which would reduce the financial burden in terms of interest payments.
Additionally, extending the repayment period of the debt could make the monthly or annual repayments more manageable for Everton.
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This would benefit the new owners, by potentially freeing up cash flow for investment in the club’s infrastructure, transfers and other costs involving the day-to-day running of a club rather than servicing high debt costs.
Lowering interest payments means more money can be directed towards club development, potentially speeding up financial recovery and enabling strategic investments.
It would be a bad look for the Friedkins if the Bramley-Moore Dock stadium is delayed so that has to be a priority.
Bramley-Moore Dock
Everton’s new stadium at Bramley-Moore Dock [Credit: Imago]
This financial manoeuvre could also improve the club’s creditworthiness, making future financing easier and possibly more cost-effective.
In other Everton news, a £650million development has emerged in the club’s balance sheet ahead of the takeover.
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