Everton takeover: Stefan Borson ‘surprised’ by latest twist
Everton prospective owner Dan Friedkin has made a surprising move after opening talks about raising debt to help restructure the club’s £660million worth of loans.
That is the view of finance expert Stefan Borson, who exclusively told Football Insider he would have expected the American billionaire to be putting more equity into the Merseysiders.
Everton confirmed in September The Friedkin Group (TFG) has reached an agreement to purchase owner Farhad Moshiri’s 94.1 per cent stake in the club.
Friedkin, who is the chairman and CEO of Texas-based TFG, is currently waiting to receive regulatory approval from the Premier League, the FA and the Financial Conduct Authority before he can finalise the takeover.
Bloomberg reported on 5 December the American firm is in talks with JP Morgan Chase & Co. about raising debt to help restructure Everton’s current loans of more than £660million.
Everton to owe significant amount after takeover completed
Borson admitted it will mean the club still owe a significant amount of money after the takeover has been completed.
He told Football Insider: “The only surprising thing is if you said to me what is likely to happen when the Friedkin’s take over, I would not have envisaged that they were going to refinance a load of the debt.
“I’m sure it’s smart and sensible for them to do so, especially if they can get the support based on their own covenant.
“But it just surprises me that they would go and try and raise so much debt. We will have to see where that lands.
“I would have thought that they would be putting more equity in and keeping that debt level smaller.
“But maybe the idea is that they will put £660million in and that will be very specifically stadium debt.
“That will, therefore, not have any impact on PSR and then anything for the club and working capital for the team, wages and day-to-day expenses, maybe that will be put in by equity.
“We will see, but just on the headline, it’s just a lot of debt still.
“Obviously, they have got a plan, but I think it’s just a slightly surprising amount of debt post-takeover, but we will see.”
In other news, Everton ready to accept Dominic Calvert-Lewin offer – transfer guru.
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