Everton to be drained of cash by new Premier League takeover demand – Kieran Maguire
Everton are set to suffer a big financial blow if 777 Partners meet the takeover demands outlined by the Premier League.
That is the view of finance expert Kieran Maguire, who exclusively told Football Insider that the Premier League has outlined conditions that must be met by 777 Partners and Farhad Moshiri before the takeover is approved.
A £500million takeover agreement between the US investors and Moshiri was struck back in September, but concerns over their source of funding mean the deal has still not received Premier League approval.
As reported by Bloomberg, the Premier League are now “minded” to approve the takeover deal provided that a list of conditions are met.
The conditions include Everton chairman Moshiri writing off debts owed to him and provisional owners 777 Partners converting their loans into equity.
Everton will suffer financially if takeover demands are met
Maguire believes the conditional approval is “half a step forward” but could leave the Toffees with very low cash reserves.
“The indication that the Premier League is minded to approve the 777 takeover of Everton is half a step forward,” Maguire told Football Insider’s Sean Fisher.
“The conditions that the Premier League are looking to attach to such a deal include the likes of Farhad Moshiri writing off the money owed to him.
“It also includes 777 Partners converting the money owed to them into shares to reduce the strain on cash flow.
“With finances from Bramley Moore Dock being used to pay back existing lenders, it means that there won’t be a lot of spare cash around as far as Everton are concerned.“
In other news, Everton at risk of administration – but it could accelerate takeover deal, says Kieran Maguire
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