Joe Thomas looks at Everton's journey to being taken over by The Friedkin Group after eight years under Farhad Moshiri
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Prospective Everton owner Dan Friedkin (left) and manager Sean Dyche (right)
Prospective Everton owner Dan Friedkin (left) and manager Sean Dyche (right)
Everton Football Club has new owners.
The takeover of The Friedkin Group has now been formally approved with the Premier League ratifying a move that has undergone months of scrutiny but, as anticipated when the US firm reached an agreement with former majority shareholder Farhad Moshiri, has been completed before the end of the year.
The sale marks the conclusion of a two-and-half-year saga in which the Blues were dogged by off-field problems while Moshiri worked through a series of collapsed talks over the future of the club.
READ MORE: Everton new executive chairman Marc Watts writes open letter after Friedkin takeover with six key goalsREAD MORE: Everton takeover LIVE - Friedkin Group deal CONFIRMED, Farhad Moshiri message, new board
It is hoped stability at the top will help Everton to fully exploit the opportunities that now lie on the horizon, including the move to the state-of-the-art new stadium on the Liverpool waterfront in the summer. The feel-good factor is likely to continue into the weekend's game with Chelsea with Everton set to get the keys to the site in the coming days.
Stability is indeed the priority focus of the incoming owners, who have made a series of immediate changes by appointing TFG chief Dan Friedkin as chair and trusted senior group figures Marc Watts and Ana Dunkel to their new board. Interim CEO Colin Chong retains his place in the new structure, which will see Watts oversee club affairs as executive chairman.
Upon confirmation of the takeover, he 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.”
The takeover follows Friedkin entity Roundhouse Capital Holdings Limited acquiring the stake of Moshiri in a deal worked on for months. In his departing words, the outgoing majority shareholder stressed a belief the deal is "the best outcome for the club and its future success".
Moshiri, who went on to own a 94.1% stake in the Blues after first becoming involved with the club in 2016, will seek to claim the club's new home as his legacy. He was not present at Arsenal on Saturday, the final game of his eight year tenure, but hopes to attend an Everton match in the near-future and would like to witness Everton live out his dream of playing in their dockside home next season.
Such ambitions are a marked contrast to his approach over recent years, during which he has been an absent owner as the club descended into crisis on his watch. How history judges his legacy remains to be seen and should this new era herald a bright new dawn then his image will no doubt improve if it can be claimed the foundations of a positive future were laid in the dying days of his reign.
But his ownership of the club has been a complex one and the final years have been characterised by struggles against relegation, boardroom turmoil and a failure to comply with financial regulations - all of which have thrust Everton into the spotlight for the wrong reasons.
Ultimately, hundreds of millions of pounds was spent during a period in which the club regressed. Everton supporters, and the club's staff, will hope the resulting turbulence is now over.
Moshiri first entered talks over the future of the club in the summer of 2022, initially denying there was a 'for sale' sign outside Goodison Park and that he simply sought outside investment to help him work towards his twin ambitions of creating a dynasty on the pitch and a new future off it - a move that became a necessity after Russia's invasion of Ukraine led to Everton cutting off what had been lucrative sponsorship ties.
After discussions with the Minnesota-based Kaminski group resulted in a dead end he moved through a succession of deals, all of which collapsed. Talks with US-based MSP Sports Capital and 777 Partners both proved fruitless before an unexpected bidding war broke out in the summer amid the demise of 777's controversial effort to expand its football portfolio into the Premier League.
That empire has now imploded under legal and regulatory pressures. Everton narrowly escaped the brunt of the Miami-based group's demise after it fell into turmoil before it was able to satisfy the Premier League it was a suitable owner. Whether it could ever have done so is unclear but the near £200m it funnelled into Everton as it tried was crucial to the continuation of club operations.
In the aftermath, the Friedkin Group appeared set to put an end to the instability before its first move broke down as the senior team travelled across Ireland to play its first pre-season game at Sligo Rovers, a tribute to club captain and legend of both clubs, Seamus Coleman.
That shock, which sent a ripple of devastation through an exhausted club, centred on concern over the debt to 777 Partners and how it could be dealt with amid the issues faced by that group and some of those linked to it. All issues related to that debt are understood to have been dealt with as part of the takeover deal.
As that first bid by the Friedkins lay in tatters another US businessman, John Textor, sought to salvage a deal from the wreckage before the Friedkins returned to the table, agreeing the outline of a deal in September. While it went through checks led by the Football Association, Financial Conduct Authority, Women's Professional Leagues Limited and Premier League, the silence around the move spoke volumes.
The group, which already owns Italian giants Roma, has a reputation for a sensible and stable approach to business - one it is seeking to bolster after an uncharacteristically unsettled time in the Eternal City, where supporter protests and managerial chaos have hampered plans to build on progress that has included silverware, the club winning the Europa Conference League under Jose Mourinho in 2022.
The backdrop of silence their takeover has been set against, coupled now with the completion of the takeover on the timeline identified in private since the group renewed its efforts on Merseyside, will provide hope that years of frustration, disappointment and exasperation among the fanbase, staff and players will give way to the development of a vibrant, successful and sustainable future that befits the heritage and history of Everton.
The Friedkins have a number of significant calls to make and have started by treating the board as the priority. Interim CEO Chong deserves recognition for his role in steering the club through the challenges since his promotion from the management of the new stadium move. He received public praise from the Friedkins upon the confirmation of the takeover and will keep his role in the short term while work to finalise the appointment of a new permanent CEO continues.
By keeping him they will retain his experience and influence while injecting new inspiration through the additions of Friedkin, Watts and Dunkel.
Their focus will be to provide the stability that has long been needed and they hope to put in place the foundations for progress through the strategic improvement of the first team, placing faith in the academy and creating "a distinct on-pitch and commercial strategy for the women’s team".
Of significance is the new owners' desire to respect the club's traditions and retain Everton's pivotal role in the heart of the Liverpool community.
They will initially seek to work with the director of football, Kevin Thelwell, and manager, Sean Dyche, as they seek to navigate the on-pitch challenges still facing the club. But decisions on both will need to be reached in the coming months - each of their contracts are set to expire in the summer.
Both figures can claim credit for their roles in navigating the conditions they inherited to keep Everton in the Premier League, and both were keen to prosecute a case for having their tenures extended during the early stages of the Friedkins' takeover push. They will face questions over whether they can lead the club forward though as all facets of the club continue to be assessed. The new owners will want fresh impetus at all levels, including at Finch Farm.
The value the Friedkins will place on institutional knowledge at Finch Farm remains to be seen but, with more than half of the senior playing squad currently due to leave the club and Thelwell having planned ahead toward both the January and summer transfer windows, there is likely to be a willingness to retain stability in at least one area given that so many others will be the subject of natural uncertainty over the coming months.
Dyche's future will also remain a talking point throughout their initial work. While the stability he provides at Finch Farm is something the club has been desperate to protect during a tough start to the season, his position will be the subject of heightened attention. The pressure of a disappointing start to the campaign has been released after a much-needed win over Wolverhampton Wanderers was followed with a battling point at title-chasing Arsenal in which his players displayed the character and resilience that has been a hallmark of the side at its best under him.
Those results, combined with the struggles of Ipswich Town, Wolves, Southampton and West Ham United, as well as frustration at Tottenham Hotspur, have seen the pressure that threatened to overwhelm Everton at the start of December shift elsewhere for now. That reprieve does also pose a dilemma - a handful of managers are being coveted by a growing pool of rivals. The Friedkins will be aware of the threat other clubs, some of which have stronger squads, could have on their own plans should they become beset with panic.
Change in the dugout is one of the easiest ways in which the group can signal new intent but pragmatism will play a role in any decision - while Everton look capable of avoiding the dogfights of recent seasons this campaign has been underwhelming and the Blues' recent progress remains vulnerable. Dyche could be held responsible for that but the message inside the club has long been that he is the safest pair of hands that can be trusted with achieving survival - the uninspiring but necessary target for the year.
Given his track record of delivering amid the chaos of recent years at Everton, sticking with him while the Friedkins grow their understanding of the club could be deemed a sensible move. It would would also avoid a compensation payout at a time the club is still wary of its proximity to the league's Profit and Sustainability Regulations [PSR].
The timing of this takeover is poignant on that front, with the Friedkins having worked with Moshiri to ensure more than £450m of interest-free shareholder loans will no longer be an issue just weeks before they are to become the subject of new PSR tests that would have worsened Everton's position.
Had the takeover not been completed by January 11 those loans would have come under PSR scrutiny, though Moshiri was due to take action to prevent them from hampering the position the new owners would have inherited should their wait have dragged beyond that date. Considering the vast sums pumped into the club since his arrival, Moshiri will have taken a major financial hit as part of the deal that will see him depart.
The light at the end of what has been a long, treacherous tunnel is now in reach at Everton but the rest of the season is yet to be navigated and while there are easy wins available to the Friedkins, challenges do still lie ahead - a reality that may strengthen Dyche's hand in the short term.
The Friedkins have been unafraid of statement signings at Roma and shocked European football with the surprise hiring of Mourinho. That move came after an initial period of calm following the completion of their takeover of the Giallorossi in August 2020 though. Placing faith in Dyche, who has at times appeared frustrated at the lack of contact from the incoming owners, would echo that approach.
Should they be looking to appoint a 'project' manager, holding off for now would also prevent someone who would need patience from being bogged down in a survival battle that could still unfold.
For now, the new owners do not need to do anything to provide a major source of hope and excitement. The mere fact of their arrival already does that for a fanbase scarred by false dawns, brutal survival fights, unprecedented points deductions and unfulfilled promises. The Friedkins, who will be represented at Goodison Park for the visit of Chelsea on Sunday, will be greeted with goodwill from a powerful and passionate fanbase and now have a golden opportunity to wake a sleeping giant of English football: This is an exciting time for a precious institution and those who hold it dear.
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The Friedkins, in their opening words as new Everton owners, appear to recognise that. In an open letter released on Thursday, Dan Friedkin said: "Following the completion of the takeover of Everton Football Club, I want to express my gratitude for your continued support and introduce the incoming Executive Chairman of Everton, Marc Watts. I take immense pride in welcoming one of England’s most historic football clubs to our global family, The Friedkin Group. Everton represents a proud legacy, and we are honoured to become custodians of this great institution.
"The Friedkin Group is a diverse family of companies with a global footprint spanning industries such as sports, automotive, entertainment, hospitality, and adventure. Across all our endeavours, we strive to deliver extraordinary experiences that ignite people’s passions. We are thrilled to bring this ethos to Everton and the Liverpool City Region.
"Whilst we are new to the club, we fully understand the vital role Everton plays in local culture, history, and the lives of Evertonians here and around the world. We are deeply committed to honouring this legacy while contributing positively to the community, economy, and people of this remarkable city."