Everton takeover: Dan Friedkin to spend ‘£400m’ on day one – expert
Everton prospective owner Dan Friedkin could inject up to £400million into the club on day one to help pay off the existing lenders if he completes a takeover deal.
That is the view of finance expert Stefan Borson, who exclusively told Football Insider it’s unclear whether that financing will be put in as debt or equity and if the American businessman will charge an interest rate.
Everton confirmed in a statement on 23 September The Friedkin Group has reached an agreement to purchase owner Farhad Moshiri’s 94.1 per cent stake in the club.
It comes after the US firm, which also owns Italian side Roma, previously pulled out of talks to buy the Merseysiders in July due to risks associated with the £200million loan provided to the club by former prospective owner 777 Partners.
But those concerns have now been resolved, allowing the Texas-based company to reignite its interest and agree terms with Moshiri.
Sky Sports journalist Alan Myers reported on 23 September the deal could involve Friedkin injecting a £400-500million equity investment into the club.
Dan Friedkin to pay off Everton lenders on day one
Borson suggested the majority of that money is likely to be spent on paying off Everton’s existing lenders.
“We need to understand what that looks like,” Borson told Football Insider.
“At the moment, we can’t be sure what that looks like.
“But the reality is that Friedkin is going to have to put money in to refinance some of the existing lenders, so it’s likely that £200million will go out on day one.
“Friedkin will put £200million into the club, the club will then repay Rights and Media Funding for £200million.
“Friedkin is then in for not only the £200million he’s already got in but also another £200million he’s just put in to pay one of the lenders.
“He’s probably then also got a deal with 777 Partners. The understanding I have on that is he’s going to pay maybe half of it and the other half is going to be paid off in the future, so that’s another £100million.
“That’s up to £300million he’s then put in on day one.
“Then maybe he’s got to put in another £100million working capital, so the money to keep the club ticking over in terms of paying its bills, paying for the stadium and the wage bill.
“All of that together probably is something like £400million new money on day one.
“We don’t know how he’s going to structure that.
“We don’t know whether he’s going to put it in as debt or as equity and whether he’s going to charge an interest rate for it.”
In other news, Dominic Calvert-Lewin update after deal agreed.
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