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The Friedkin Group
The Friedkin Group’s (TFG) decision to try to restructure Everton’s debt is a positive that the takeover deal is close to being completed.
Bloomberg has reported that TFG are in talks with JPMorgan Chase & Cot to address the Toffees’ finances when a purchase is ratified that will ‘help reduce interest payments’. The American firm - headed by Texan billionaire Dan Friedkin - agreed to buy Everton from majority owner Farhad Moshiri in September. The transaction is subject to regulatory approval.
TFG will inherit a club that has been in financial turmoil, losing almost £400 million in the past four years. There are current debts of £660 million reportedly owed to the likes of Rights and Media Funding and 777 Partners/ A-Cap. It is suggested that JP Morgan has an ‘outstanding relationship’ with TFG after helping them complete a takeover of AS Roma in 2020.
And Bloomberg reporter Salias Brown believes that the fact TFG are talking to JPMorgan shows that the takeover ‘is coming to a head’. Speaking to BBC Radio Merseyside, he said: “If you're an Everton supporter, this is positive news as it's a sign that talks are really coming to a head with the acquisition. They are speaking with JPMorgan potentially among others to simplify Everton's capital structure after the acquisition which is set to close in a matter of weeks.
“In the new year, they'll look to borrow money to repay a complicated structure that the incumbent owner has left. That's a positive sign because they'll be able to get better rates, longer-term safety and a safer capital structure for the club.
“In 2020, I first covered the news Everton were trying to build money for its new stadium and that became more complicated for a manner of reasons. Within the world of sports finance, there is a sign that Friedkin is a sophisticated investor, they have lengthy experience in sports clubs and other investments. JPMorgan isn't loaning the money, they will be arranging a sale of debt. If I were an Everton supporter, I would be feeling quite good about how the talks are progressing.”
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