Everton have announced that a proposed takeover of the club by The Friedkin Group has collapsed.
The news is a significant blow to the Premier League side after the Texas-based group, who own Italian giants AS Roma, emerged as potential new owners after previous discussions with American investors 777 Partners collapsed last month.
The Friedkin Group are understood to have pulled out due to concerns about the debt to previous proposed buyers 777 Partners, a figure of around £200m that the Americans had loaned to Everton last season.
The Athletic are reporting that Everton are now in a ‘precarious’ financial position. 777 Partners are in the hands of insolvency experts after its ‘complex web of portfolio companies started to unravel earlier this year, following months of lawsuits over unpaid bills, late payments and allegations of fraud’.
The Friedkin Group wanted a discount on the money owed to 777 Partners and have now decided the purchase of Everton contains too much risk.
“Following a period of exclusivity, discussions between Blue Heaven Holdings and The Friedkin Group over a potential sale of a majority stake in Everton have ended and The Friedkin Group will not be progressing with a purchase of the Club,” the statement from Everton read.
“Both Blue Heaven Holdings and The Friedkin Group entered discussions in good faith to explore whether a sale could be agreed. Those discussions have concluded. The parties agree it is in both their interests for Everton to explore alternative options.
“The Friedkin Group will remain a lender to the Club and is proud to have played a key role in enabling the new stadium to be built, which will help ensure a bright future for both Everton and the City of Liverpool.
“Blue Heaven Holdings maintains a positive relationship with The Friedkin Group and would like to thank them for the time and effort they have put into this process.
“When there is further news to share, it will be provided via the Club’s official communication channels.”
