Everton takeover rescue deal has ‘strings attached’ – Kieran Maguire
Everton’s takeover deal with 777 Partners could be rescued by a new US party but the agreement will have “significant strings attached”.
That is the view of finance expert Kieran Maguire, who exclusively told Football Insider that GDA Luma could salvage the takeover deal but will likely include high-interest fees on any loan agreements.
As reported by Bloomberg, GDA Luma Capital – a private equity firm specialising in distressed debt – has emerged as a potential lender to 777 Partners.
They are willing to provide debt financing to 777 to help cover the club’s stadium construction and operating costs while they await for approval from the Premier League.
777’s takeover deal was dealt a “crushing blow” last week after news that one of the airlines they own entered administration.
Everton takeover deal could be rescued by new US party
Maguire believes that GDA Luma could rescue Everton’s takeover deal, but any agreement will likely have a very high interest rate.
“In the world of finance, there’s always somebody willing to lend you money,” Maguire told Football Insider’s Sean Fisher.
“But you then have to look at the terms and conditions and I imagine there will be significant strings attached.
“If you take a look at the profile of Everton’s lenders, none of them are High Street or what you would call traditional lenders.
“There are a few that are done out of their love for the club, which is great – but for others it is simply a transaction and that will be reflected in the interest rate.
“So if Luma do get on board, it will be because it’s in their best interests and not necessarily in the best interests of Everton.“
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